Carrie Perry will receive $22,000 a year for the next 20 years as payment for a song she has just written. If a present 7.94% percent discount rate is applied, at what minimum price can she sell her right? Choose the nearest value. Multiple Choice $750,000 $800,000 $1 million $1.25 million
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Carrie Perry will receive $22,000 a year for the next 20 years as payment for a song she has just written. If a present 7.94% percent discount rate is applied, at what minimum price can she sell her right? Choose the nearest value. Multiple Choice $750,000 $800,000 $1 million $1.25 million
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- You are offered $80,000 today or $400,000 in 10 years. Assuming that you can earn 16 percent on your money, which should you choose? Question content area bottom Part 1 If you are offered $400,000 in 10 years and you can earn 16 percent on your money, what is the present value of $400,000? $enter your response here (Round to the nearest cent.)You are scheduled to receive $10,000 in three years. When you receive it, you will invest it for six years at 7.2 percent per year. How much will you have in nine years? (hint: draw a timeline) Multiple Choice $18,696.19 $17,290.61 $13,788.43 $15,176.40 $16,611.93Maddie buys a new apartment for 500,000 at the beginning of 2020. At the end of 2020 an identical new apartment is selling for $ 550,000, reflecting the rate of inflation. The nominal interest rate in 2020 is 5 percent and the physical depreciation rate on the apartment is 10 percent. What is the annual user cost in percent to Maddie from purchasing the apartment? Select one: a. -10 percent b. 15 percent c. 6 percent d. -5 percent e. 5 percent
- Check my work Carrie Tune will receive $27750 for the next 5 years as a payment for a new song she has written. Use Apnendix D for an approximate answer, but calculate your final answer using the formula and financial caiculator methods o. What is the present value of these payments if the discount rate is 7 percent? (Do not round intermediate calculations. Round your final onswer to 2 decimal places.) 17. Present value b. Should she be willing to sell out her future rights now for $161.000? O Yes O NoYou are scheduled to receive $45,000 in two years. When you receive it, you will invest it for 8 more years at 6 percent per year. How much will you have in 10 years? Multiple Choice $80,588.15 $75,309.32 $68,137.01 $51,341.32 $71,723.16TB MC Qu. 09-10 Sharon Smith will receive... Sharon Smith will receive $1.23 million in 30 years. The discount rate is 9%. As an alternative, she can receive $92,250 today. Which should she choose? Use Appendix B to calculate the answer. Multiple Choice the $1.23 million dollars in 30 years. O $92,250 today. O she should be indifferent. need more information.
- The winner of a $10,000,000 prize has the following payment choices. If the interest rate is 10%, which choice is best? Select one: a. $3,000,000 per year for 12 years b. $2,000,000 per year for 50 years c. $10,000,000 now d. $55,000,000 in 10 years e. All of choices are the sameYou intend to endow a scholarship that pays $5,000 every 6 months, starting 6 months from now. If the appropriate discount rate is 3% per 6-month period, how much money will you have to donate ← today to endow the scholarship? You will need to donate $ (Round to the nearest dollar.) CITURE ic Gail Trevino expects to receive a $580,000 cash benefit when she retires seven years from today. Ms. Trevino's employer has offered an early retirement incentive by agreeing to pay her $310,000 today if she agrees to retire immediately. Ms. Trevino desires to earn a rate of return of 10 percent. (PV of $1& and PVA of $1) Note: Use appropriate factor(s) from the tables provided. raw Required a. Calculate the present value of the $580,000 future cash benefit. Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Trevino accept her employer's offer? Note: Round your final answer to the nearest whole dollar value. Present value Should Ms. Trevino accept the offer?
- You are thinking about purchasing an investment from Get-Rich-Quick Investmemnt company. If you buy the investment, you will receive $50 every month for five(5)years. Payment will be made at the end of each month. If your required rate of return is 9% how much should you be willing to pay for this investment? Group of answer choices $4,632.87 $2,735.25 $2,525.10 $2,408.67Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10 years. If you require a 7% return, what is the most you should pay for this investment? Group of answer choices $201,000 $175,590 $225,682 $ 49,179 $250,000You want to endow a scholarship that will pay $ 8 comma 000$8,000 per year forever, starting one year from now. If the school's endowment discount rate is 4 %4%, what amount must you donate to endow the scholarship? How would your answer change if you endow it now, but it makes the first award to a student 10 years from today?