A wealthy investor is considering purchasing a perpetual annuity that pays $1.8 million per year indefinitely. If the required rate of return is 5.2%, what is the present value of the investment?
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- i need the answer quicklyA You are considering investing in a security that will pay you $1000 in 30 years. If the appropriate discount rate is 10%, what is the present value of this investment? Assume these investments sell for $365, in return for which you receive $1000 in 30 years, what is the rate of return investors earn on this investment if they buy it for $365? b What is the accumulated sum of each of the following streams of ordinary annuity payments? $35 per half-year for three and a half years at 14% p.a. compounded half- yearly. $25 a year for three years compounded annually at 2%. $500 a year for 10 years compounded annually at 5%Consider an investment which pays $2,000 at the end of year 1, year 2, and year 3. In year 4, the investment will pay $5,000 and this payment will grow by 4.3% each year forever. If the appropriate interest rate is 7%, what is this investment worth today?
- You are offered an investment that requires you to put up $5,000 today in exchange for $12,000 10 years from now. What is the annual rate of return on this investment?An investment pays an annual cash flow of $1 forever. The appropriate discount rate is 4% per year. What is the present value of this investment opportunity?Suppose you invest $2,000 today and receive $11,000 in five years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $2,000 upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year?
- You are considering investing in a security that will pay you 2,000 in 25 years. If the appropriate discount rate is 9 percent what is the present value of this investment? Assume these investments sell for $1,103 in return for which you receive $2,000 in 25 years. What is the rate of return investors earn on this investment if they buy it for 1, 103 ?What would the value of your investment be after five years if you invest P5,000 in a financial security with an annual return of 8% and reinvest the proceeds each year?You are considering investing in a security that will pay you $3,000 in 30 years. a. If the appropriate discount rate is 10 percent, what is the present value of this investment? b. Assume these investments sell for $706 in return for which you receive $3,000 in 30 years. What is the rate of return investors earn on this investment if they buy it for $706 ?
- If you put up $37,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual cash flow be?An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If the rate of interest earned on the investment is 8%, what is the present value of this investment? What is its future value? How do you solve this with excel?An investment will pay $150 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and incur a $500 cost at the end of Year 6. If other investments of equal risk earn 6.7% annually, what is this investment’s present value? Its future value?