Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you will be receiving $25,000 at the end of each y

You will be receiving $25,000 at the end of each year for the next 20 years....

Free

70.2K

Verified Solution

Question

Finance

You will be receiving $25,000 at the end of each year for thenext 20 years. If the correct discount rate for such a stream ofcash flows is 10% then what is the present value of the cashflows?

Answer & Explanation Solved by verified expert
3.7 Ratings (512 Votes)

Information provided:

Annuity payments= $25,000

Time= 20 years

Discount rate= 10%

The present value is calculated by entering the below in a financial calculator:

PMT= 25,000

N= 20

I/Y= 10

Press the CPT key and PV to compute the present value.

The value obtained is 212,839.09.

Therefore, the present value is $212,839.09.

In case of any query, kindly comment on the solution.

                                                                                                                                               
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

You will be receiving $25,000 at the end of each year for thenext 20 years. If the correct discount rate for such a stream ofcash flows is 10% then what is the present value of the cashflows?

Other questions asked by students

Q

EcoWorld is a manufacturer of enclosed, decorative environments. They are composed of a hand-blown glass sphere...

Operations Management
Q

5. Did the Roman Empire truly and finally fall when the Visigoths conquered Ravenna? Why or...

Psychology
Q

Weekday lunch demand for the spicy black bean burritos sold by a food truck on the...

General Management
Q

Which of the following is a proper noun? Bread Forty William

Biology
Q

1 3 Which of the following best describes how enzymes affect chemical reactions O They...

Biology
Q

Fireman Bob leans a 40 foot ladder against a building at an angle of elevation...

Basic Math
Q

2 A company produces and sells electric cars The company s profit P in thousands...

Basic Math
Q

The fourth term of 3x 5y 6 is A 11 390 625x y B 67...

Calculus
Q

Evaluate 3 State your answer as a fraction

Algebra
Q

hi

Accounting
Q

Exercise 4-9 Concord Company ended its fiscal year on July 31, 2019. The company's adjusted...

Accounting
Q

HELP!!! Requlred Information Problem 8-5 (Algo) Various inventory costing methods...

Accounting