- An investment promises to pay $4500 every year for 12 years. However, it does not start paying until 3 years from today. If the relevant discount rate is 6%, what is the present value?
- Let’s assume our required yield is now 12%. Our bond has a face value of $1,000 paying 10% annual interest over 20 years. What is the present value?
- In net present value analysis for a proposed capital investment, the expected future net cash flows are reduced to their present values. a. True b. False
- Find the present value of a single payment of $23,600 at 6 percent for 12 years.
- Find the present value of a single payment of $5,000 at 9 percent for five years.