Questions from Corporate Finance

Q: Compute the present value of a $2,000 deposit in

Compute the present value of a $2,000 deposit in year 1 and another $1,500 deposit at the end of year 3 if interest rates are 10 percent.

Q: Compute the present value of a $2,000 deposit in

Compute the present value of a $2,000 deposit in year 1 and another $2,500 deposit at the end of year 4 using an 8 percent interest rate.

Q: Suppose that the 2016 actual and 2017 projected financial statements for AFS

Suppose that the 2016 actual and 2017 projected financial statements for AFS are initially shown as follows. In these tables, sales are projected to rise by 14 percent in the coming year, and the comp...

Q: What’s the present value of a $900 annuity payment over five

What’s the present value of a $900 annuity payment over five years if interest rates are 8 percent?

Q: At your full-service brokerage firm, it costs $140

At your full-service brokerage firm, it costs $140 per stock trade. How much money do you receive after selling 200 shares of Nokia Corporation (NOK), which trades at $20.13?

Q: What’s the present value of a $700 annuity payment over six

What’s the present value of a $700 annuity payment over six years if interest rates are 10 percent?

Q: What’s the present value, when interest rates are 7.5

What’s the present value, when interest rates are 7.5 percent, of a $50 payment made every year forever?

Q: What’s the present value, when interest rates are 8.5

What’s the present value, when interest rates are 8.5 percent, of a $75 payment made every year forever?

Q: If the present value of an ordinary, 7-year annuity

If the present value of an ordinary, 7-year annuity is $6,500 and interest rates are 7.5 percent, what’s the present value of the same annuity due?

Q: If the present value of an ordinary, 6-year annuity

If the present value of an ordinary, 6-year annuity is $8,500 and interest rates are 9.5 percent, what’s the present value of the same annuity due?