Provide correct answer general Accounting If you are willing to pay $44,793.00 today toreceive $4,189.00 per year forever then yourrequired rate of return must be%.Assume the first payment is received oneyear from today.

Step 1: Define PerpetuityPerpetuity can distribute a stream of annual payments to an investor, which…

Answered: If you are willing to pay $44,793.00…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Similar questions

You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
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Suppose you inherit a perpetuity that pays $4,000 each year. Assuming the first payment will occur one year from now and the cost of capital is 10% APR with daily compounding, what is the value of this perpetuity today? Assume 365 days in a year.
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If you decide to deposit $480 every year for the next 6 years, with first deposit to be made one year from today and all deposits to be made at the end of each year, in an account that pays 4.62% APR with annual compounding, how much is this account worth in today's dollars?
Assume you will be paid $100 next year and every year after, and the interest rate is 2%. Calculate the present value of this infinite future payment of $100
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You plan to invest $2,000 per year into a retirement account. If you earn a compound annual rate of return of 5%, how many years will it take you to reach a balance of $500,000?
What is the present value of $4,000 paid each year forever, assuming a discount rate of 7% and the first payment occurs one year from now?
What is the future value of $13,000 to be received at the end of each quarter over a period of 10 years assuming you earn 6% interest annually? Enter your answer as a positive number (round to the nearest dollar if necessary).
You expect to receive $1,000 at the end of each of the next 3 years. You will deposit these payments into an account that pays 8 percent compounded annually. What is the future value of these payments, that is, the value at the end of the third year?

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If you are willing to pay $44,793.00 today to receive $4,189.00 per year forever then your required rate of return must be %. Assume the first payment is received one year from today.