Question

An investment, which is worth 30,300 dollars and has an expected return of 7.42 percent, is expected to pay fixed annual cash flows forever with the next annual cash flow expected in 1 year. What is the present value of the annual cash flow that is expected in 7 years from today?

Quantum Pizza took out a loan from the bank today for 24,500 dollars. The loan requires Quantum Pizza to make a special payment of 13,500 dollars to the bank in 1 years and also make regular, fixed payments of X to the bank each year forever. The interest rate on the loan is 5.58 percent per year and the first regular, fixed annual payment of X will be made to the bank in 1 year. What is X, the amount of the regular, fixed annual payment?

Omar has an investment worth 168,187 dollars. The investment will make a special payment of X dollars to Omar in 7 month(s) and the investment also will make regular, fixed monthly payments of 1,780 dollars to Omar forever. The expected return for the investment is 1.15 percent per month and the first regular, fixed monthly payment of 1,780 dollars will be made to Omar in 1 month. What is X, the amount of the special payment that will be made to Omar in 7 month(s)?

An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate annually. We know that the cash flow expected in 2 year(s) from today is expected to be 1,700 dollars and the cash flow expected in 8 years from today is expected to be 3,460 dollars. What is the cash flow expected to be in 6 years from today?

An investment, which has an expected return of 18.64 percent, is expected to make annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate of 1.53 percent per year. The cash flow in 1 year from today is expected to be 34,830 dollars. What is the present value (as of today) of the cash flow that is expected to be made in 5 years?

Answer 1

I can only answer 1 question at a time so I am solving first question.

di 30,300 2 3 3 Fist we will find the censtart nna (seshfesuo A 1 0742 2 0225 Thus SLmd 1012 0742 ious, Besen tis na $ 136 (1.07e12)ヲ

Please do rate me and mention doubts, if any, in the comments section..