- Your research paper is written by certified writers
- Your requirements and targets are always met
- You are able to control the progress of your writing assignment
- You get a chance to become an excellent student!


Essay Details:


Essay text:
Assuming you could earn 11 percent annually, which alternative should you choose? If you could earn 12 percent annually, would you still choose the same alternative?
Solution:
(first alternative) Present value of 10,000 received now: 10,000
(second alternative) Present Value of annuity of 2,000 for eight years:
Appendix D
PVa=AxPVifa
=2,000xPVifa (11%,8years)
=2,000x5.146
=10,292
(third alternative) Present value of 24,000 received in 8 years
Appendix B
PV= FV x PVif
=24,000 x PVif(11%, 8 years)
I would select 24,000 to be received in 8 years
Revised answer based on 12%
First alternative present values of 10,000 received today 10,000
Second ? present value of annuity of 2,000 for 8 years (same as above but use 12)
Problem P9 ? 23
Payments Required: You need $28,974 at the end of 10 years, and your only investment outlet is an 8 percent long-term certificate of deposit (compounded annually)...

Calculate a fair price for your order

Do you need an essay?
A professional team of writers is able to craft custom essays from scratch according to your instructions. We are ready to satisfy writing needs of every demanding customer.


Do you need many essays?
The product provided is intended to be used for research or study purposes. Get instant access to over 200,000 papers.

Common topics in this essay:
- Yield to Maturity
- Interest Rates And Bond Valuation
- The Advantages And Disadvantages Of Free Market Economy, Price Determination With Market Forces. And Government Intervention With Free Market Equilibrium Price And The More Suitable Model For The Sudan
- Yield To Maturity Paper
- Yield To Maturity
- Yield To Maturity
- Yield to Maturity
- Yield to Maturity
- Yield to Maturity
- Relationship between interest rates and price of bond
- Top ten percent rule in texas
- Yield To Maturity
- Percent Mass of Copper in a Penny
- Less than one percent
- measuring percent oxygen in air
Feedback of people who used our services.
Similar Essays:
5 pages / 1291 words |
|||
6 pages / 1586 words |
|||
5 pages / 1401 words |
|||
4 pages / 1120 words |
|||
2 pages / 410 words |
|||
3 pages / 737 words |
|||
2 pages / 434 words |