FOUND.OF FINANCIAL MANAGEMENT-ACCESS
17th Edition
ISBN: 9781260519969
Author: BLOCK
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 9, Problem 16P
Carrie Tune will receive
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Bill will receive a royalty payment of $18,000 per year for the next 25 years, beginning one year from now, as a result of a book he has written. If a discount rate of 10 percent is applied, should he be willing to sell out his future rights now for $160,000? How about $162,500? $165,000?
Carrie Tune will receive $30,000 for the next 11 years as a payment for a new song she has written. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.
a. What is the present value of these payments if the discount rate is 14 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
b. Should she be willing to sell out her future rights now for $167,000?
multiple choice
Yes
No
Carrie Tune will receive $30,800 for the next 10 years as a payment for a new song she has written. Use Appendix D for an
approximate answer, but calculate your final answer using the formula and financial calculator methods.
a. What is the present value of these payments if the discount rate is 16 percent?
Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
Present value
b. Should she be willing to sell out her future rights now for $202,000?
Yes
O No
Chapter 9 Solutions
FOUND.OF FINANCIAL MANAGEMENT-ACCESS
Ch. 9 - Prob. 1DQCh. 9 - How is the present value of a single sum related...Ch. 9 - Prob. 3DQCh. 9 - Does inflation have anything to do with making a...Ch. 9 - Adjust the annual formula for a future value of a...Ch. 9 - If, as an investor, you had a choice of daily,...Ch. 9 - What is a deferred annuity? (LO9-4)Ch. 9 - Prob. 8DQCh. 9 - Prob. 1PCh. 9 - Prob. 2P
Ch. 9 - a. What is the present value of $140,000 to be...Ch. 9 - If you invest $9,000 today, how much will you have...Ch. 9 - Prob. 6PCh. 9 - Your uncle offers you a choice of $105,000 in 10...Ch. 9 - Your father offers you a choice of $105,000 in 12...Ch. 9 - Prob. 9PCh. 9 - How much would you have to invest today to receive...Ch. 9 - If you invest $8,500 per period for the following...Ch. 9 - Prob. 12PCh. 9 - Mrs. Crawford will receive $7,600 a year for the...Ch. 9 - Phil Goode will receive $175,000 in 50 years. His...Ch. 9 - Sherwin Williams will receive $18,500 a year for...Ch. 9 - Carrie Tune will receive $19,500 for the next 20...Ch. 9 - The Clearinghouse Sweepstakes has just informed...Ch. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - At a growth (interest) rate of 10 percent...Ch. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Juan Garza invested $20,000 10 years ago at 12...Ch. 9 - Prob. 26PCh. 9 - Prob. 27PCh. 9 - Prob. 28PCh. 9 - Prob. 29PCh. 9 - You need $28,974 at the end of 10 years, and your...Ch. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 33PCh. 9 - Prob. 34PCh. 9 - Prob. 35PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Del Monty will receive the following payments at...Ch. 9 - Prob. 39PCh. 9 - Prob. 40PCh. 9 - Prob. 41PCh. 9 - Prob. 42PCh. 9 - Prob. 43PCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Your younger sister, Linda, will start college in...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Stephanie is going to contribute $160 on the first of each month, starting today, to her retirement account. Her employer will provide a match of 50 percent. In other words, her employer will add $80 to the amount Stephanie saves. If both Stephanie and her employer continue to do this and she can earn a monthly interest rate of .45 percent, how much will she have in her retirement account 35 years from now?arrow_forwardTommy will receive a royalty payment of $ 28699 per year for the next 25 years, beginning one year from now, as a result of an app he has developed. If a discount rate of 6 percent is applied, how much are the future rights worth now? (Use excel function)arrow_forwardUna Day is planning to retire in 20 years, at which time she hopes to have accumulated enough money to receive an annuity of $35,000 a year for 25 years of retirement. During her pre-retirement period she expects to earn 9 percent annually, while during retirement she expect to earn 11 percent annually on her money. What amount will be needed in 20 years (at time of retirement). What amount of annual contributions to the retirement fund are required for to achieve her objective and sleep well at night? If she currently earns $35,000 a year will this amount be enough in retirement 20 years from now (briefly explain – no calculations are required).arrow_forward
- Elora must have RM120,000 in order to buy a piece of vacant land. She plans to save RM2,000 per year in her saving account with Amanah Bank that pays 12 percent interest rate compounded semi-annually. If Elora save for 15 years, determine if Elora would be able to buy the land.arrow_forwardMarian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,760 at the end of each of the next 3 years. The opportunity requires an initial $1,190 investment of plus an additional investment at the end of the second year of $5,950 What is the NPV of this opportunity if the interest rate is per year? Should Marian take it? What is the NPV of this opportunity if the interest rate is 2.4% per year? The NPV of this opportunity is $ (Round to the nearest cent.)arrow_forwardMary is in contract negotiations with a publishing house for her new novel. She has two options. She may be paid $100,000 up front, and receive royalties that are expected to total $26,000 at the end of each of the next five years. Alternatively, she can receive $200,000 up front and no royalties. Which of the following investment rules would indicate that she should take the former deal, given a discount rate of 8%? Rule I: The Net Present Value rule Rule II: The Payback Rule with a payback period of two years Rule III: The internal rate of return (IRR) Rule Rule I only Rule Ill only O Rule I and II None Rule I, II, and III Rule II only Rule II and III O Rule I and IIIarrow_forward
- A civil engineer planning for her retirement places 9% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $160,000 and she expects her salary to increase by 5% each year, what will be the future worth of her retirement fund after 16 years provided it earns 8% per year? The future worth of her retirement fund will be $ 481855.8arrow_forwardMystia Green is considering the purchase of a house, which will cost her $450,000. She will borrow the entire purchase price and make monthly payments over the next twenty years. The first payment is due next month, and the interest rate is 6.50% per annum (p.a.), compounded monthly She will owe $_________on the house immediately following the 121 st payment.arrow_forwardPuan Elly is planning to retire in 20 years and she plans begin withdrawing RM 50,000 anuallannually at the point of time.She is expected to live 20 years following her retirement.If she can earn 9% compounded anually,how much does she need to save each year to prepare for her financial needs after her retirement.arrow_forward
- Karl Yates needs $9,000 to pay for the remodeling work on his house. A contractor agrees to do the work in 10 months. How much should Karl deposit at 6.3% in order to accumulate the $9,000 by that time? Karl should deposit S (Round to the nearest cent.)arrow_forwardAline has three contracts from which to choose. The first contract will require an outlay of $ 100,000, but will return $ 150,000, one year from now. The second contract requires an outlay of $ 200,000, and will return $ 300,000, one year from now. The third contract requires an outlay of $ 250,000, and will return $ 355,000, one year from now. Only one contract can be accepted. If her MARR is 20%, which one should she choose?arrow_forwardDonna enters into an investment contract that will guarantee her 4% per year if she deposits $3,500 each year for the next 10 years. She must make the first deposit one year from today, the day she signs the agreement. How much will she have when she makes her last payment 10 years from now? Assume the same facts as in problem 1 above, except that Donna negotiates the chance to make her first payment now and continue to pay at the beginning of each year for the 10-year period. How much will she have accumulated?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
How To Calculate The Present Value of an Annuity; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=RU-osjAs6hE;License: Standard Youtube License