Mathematics

Mathematics, 30.06.2019 05:10, KenyanaBDavis

(present value of a growing perpetuity) what is the present value of a perpetual stream of cash flows that pays $3,500 at the end of year one and the annual cash flows grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 10%? what if the appropriate discount rate is 8%?

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Business, 22.06.2019 14:30, crystalryan3797

What’s the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? $4,750 $5,000 $5,250 $5,513 $5,788what is the present value of the following cash flow stream at a rate of 8.0%, rounded to the nearest dollar? cash flows: today (t = 0) it is $750, after one year (t = 1) it is $2,450, at t = 2 it is $3,175, and at t=3 it is $4,400. draw a time line. $7,917 $8,333 $8,772 $9,233 $9,695

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Business, 20.09.2019 18:00, Zarek9344

1. perpetuities perpetuities are also called annuities with an extended or unlimited life. based on your understanding of perpetuities, answer the following questions. which of the following are characteristics of a perpetuity? check all that apply. the value of a perpetuity is equal to the sum of the present value of its expected future cash flows. a perpetuity is a stream of unequal cash flows. the current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows. a perpetuity is a stream of regularly timed, equal cash flows that continues forever. a local bank’s advertising reads: "give us $50,000 today, and we’ll pay you $800 every year forever." if you plan to live forever, what annual interest rate will you earn on your deposit? 1.60% 2.24% 1.28% 1.44% oops! when you went in to make your deposit, the bank representative said the amount of required deposit reported in the advertisement was incorrect and should have read $75,000. this revision, which will the interest rate earned on your deposited funds, will adjust your earned interest rate to .

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Business, 10.10.2019 00:30, bhale5406

Which of the following are characteristics of a perpetuity? check all that apply. a perpetuity continues for a fixed time period. in a perpetuity, returns—in the form of a series of identical cash flows—are earned. the present value of a perpetuity is calculated by dividing the amount of the payment by the investor’s opportunity interest rate. a perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future.

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