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i think the present of 700 is 700%
The discount value is $11.99 and the sale price is $67.99
Present value of streams can be found by dividing the streams with 4 percent interest rate for example if stream is 100 then present value will be present value = 100 / .04
The four pieces to an annuity present value are: Present value(PV), Cashflow (C), Discount rate (r) and the life of the annuity (t)
You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.05 annually. If you use a discount rate of 0.10 for investment products, what is the present value of this growing perpetuity?
What is the present value of 500 to be recieved 10 yrs from today if it is discount at the rate of 6 percent?
what is present value of a single payment of 24,000 at 6 percent for 12 years
Present value analysis is a financial technique used to evaluate the value of future cash flows by discounting them back to their current value. It takes into account the time value of money, allowing for better decision-making by comparing the present value of costs and benefits. The goal is to determine whether an investment or project is worth pursuing based on its potential return.
i think the present of 700 is 700%
the net present value as determined by normal discount rate is 10%
As, the present value of future cash flows is determined by the discount rate, so increase or decrease in the discount rate will affect the present value. Discount rate is simply cost or the expense to the company,so in simplest terms, discount rate goes up, cost goes up,so this will lower the present value of cash flows. Assumes a discount rate of 5%,to discount $100 in one years time: Present Value=$100 * 1/(1.05) =$95.24 Ok,as you say,if the discount rate becomes higher,let's say 8%: Present Value=$100 * 1/(1.08) =$92.6 so, the higher the discount rate, the lower the present value.
The discount value is $11.99 and the sale price is $67.99
Present value of tax saving = 5 million * 0.34 / 1.1 Present value = 1700000 / 1.1 Present value = 1545455
The PV function is a financial function. It is used to return the present value of an investment based on an interest rate and a constant payment schedule. The syntax is a follows: PV( rate, number_payments, payment, [FV], [Type] ) Rate is the interest rate for the investment. Number_payments is the number of payments for the annuity. Payment is the amount of the payment made each period. If it is omitted, you have to enter a FV value. FV is optional. It is the future value of the payments. If it is omitted, it is assumed to be 0. Type is optional. It indicates when the payments are due. Type can be one of the following values: 0 for when payments are due at the end of the period, which is the default. 1 for when payments are due at the start of the period. If the Type parameter is left out, the PV function sets the Type value to 0.
$5,790
The interest rate is 8 1/3 because Present Value = Payment/Interest rate Present Value = 48 Payment is 4 Interest Rate = Payment/Present Value = 4/48 = 8.33%
yes they are the same