Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Transit Insurance Company has made an investment in another company that will assurance it a cash flow of 37,250 dollar each year for the next 5 years. If the company uses a discount rate of fifteen percent on its investments, determine the present value of this investment? [Give your answer to the nearest dollar.]

[A]    $251,154

[B]   $186,250

[C]    $101,766

[D]   $124,868

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M917562

Have any Question? 


Related Questions in Basic Finance

In 1803 the us doubled in size with the louisiana purchase

In 1803, the U.S. doubled in size with the Louisiana Purchase. That well-known real estatemogul Napoleon Bonaparte sold us 827,000 square miles (529,280,000 acres-there are 640 acresin a square mile). We paid $15 million ...

Explain the difference between the purchase and assumption

Explain the difference between the purchase and assumption method and the payoff method of resolving a bank insolvency. What does "too big to fail" mean?

A firm is expected to pay a dividend of 355 next year and

A firm is expected to pay a dividend of $3.55 next year and $3.85 the following year. Financial analysts believe the stock will be at their price target of $120 in two years. Compute the value of this stock with a requir ...

Instructions-1 need detailed answers2 long term financial

Instructions- 1. Need detailed answers 2. Long term financial plan should be 5 years 3. Revenue costs include stuff like salary 4. I need to submit it in turnitin so make sure no one submits it 5. Anything not clear ask ...

The number of claims n in a year has a discrete

The number of claims N in a year has a discrete distribution: Pr[N=k]=0.1(4-k) for k=0,1,2,3. The amount for each claim has mean 300 and variance 30000. The distribution of amount per claim is independent of N. Calculate ...

You are running a hot internet company analysts predict

You are running a hot Internet company. Analysts predict that its earnings will grow at 20% per year for the next five years. After that, as competition increases, earnings growth is expected to slow to 6% per year and c ...

Discuss why financial markets are important to a healthy

Discuss why financial markets are important to a healthy economy and how they contribute to economic growth. Question two: assume that you recently graduated with a degree in finance and have just reported to work as an ...

What is the present value of 12500 to be received 8 years

What is the present value of $12500 to be received 8 years from today? Assume a discount rate of 4.5% compounded annually and round to the nearest $10.

What are transactions costsdoes financial intermediation

What are transactions costs? Does financial intermediation increase or decrease transactions costs?

Explain how buying behavior of business customers in

Explain how buying behavior of business customers in different countries may have been a factor in speeding the spread of international marketing.

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate