Question a project yields an annual benefit of 25 a year, Ask an Expert

Finance

Question: A project yields an annual benefit of $25 a year, starting next year and continuing forever. What is the present value of the benefits if the inter-at rate is 10 percent? Where x is a number less than 13 Generalize your answer to show that if the perpetual annual benefit is B and the interest rate is r, then the present value is Bit.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92299180

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Corporate finance chapter 6 6 1 how to determine the future

Corporate finance chapter 6. 6. 1. How to determine the future and present value of investments with multiple cash flows? Explain theoretically

Question - robert gillman an equity research analyst at

Question - Robert gillman, an equity research analyst at Gillman Advisors, believes in efficient markets, He has been following the mining industry for the past 10 years and needs to determine the constant-growth rate th ...

You currently have 120000 in a bond account and 500000 in a

You currently have $120,000 in a bond account and $500,000 in a stock account. You plan to add $5,000 per year at the end of each of the next 10 years to your bond account. The stock account will earn a return of 10.5 pe ...

Cannons corporation will pay a 400 per share dividend next

Cannons Corporation will pay a $4.00 per share dividend next year. The company pledges to increase its dividend by 4 percent per year, indefinitely. If you require a 13 percent return on your investment, how much will yo ...

Long term financing stock valuation problem -two stage

LONG TERM FINANCING: STOCK VALUATION PROBLEM - Two Stage Dividend Discount Model: Allied Equipment Plc. a producer of agricultural farming materials and equipment has paid constant quarterly dividends for the years. Howe ...

Assume the standard deviation of dell stock is 24 and the

Assume the standard deviation of Dell stock is .24 and the standard deviation of General Motors is .17. If you put 130% of your wealth in Dell and take a 30% short position in General Motors and the standard deviation of ...

Liquidity ratios burts tvs has current liabilities of 258

Liquidity Ratios Burt's TVs has current liabilities of $25.8 million. Cash makes up 48 percent of the current assets and accounts receivable makes up another 28 percent of current assets. Burt's current ratio = .93 times ...

What are the steps to solve this question this is a finance

What are the steps to solve this question? This is a Finance question. This is a practice question. I actually already know the answer, I just need to know the steps to get to the answer (72.60). What if Timco's dividend ...

Gerritt wants to buy a car that costs 26500 the interest

Gerritt wants to buy a car that costs $26,500. The interest rate on his loan is 5.31 percent compounded monthly and the loan is for 6 years. What are his monthly payments? $416.25 $430.60 $439.40 $428.70 $452.13

The common stock and debt of chen inc are valued at 75

The common stock and debt of Chen Inc are valued at $75 million and $25 million, respectively. Investors currently require a return of 16.1% on the common stock and a return of 7.6% on the debt. If Northern Sludge issues ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert