(1) pay ¢30,500,000 in cash or (2) pay ¢47,500,000 in two and a half years at a 23.5% convertible rate quarterly. Which option is better for you in terms of profit
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Present value. Luis Alpizar, who works at Coopeande, has just received an important sum of money due to an inheritance. He currently has a debt that can be fully settled with Coopeande, however, he has two options: (1) pay ¢30,500,000 in cash or (2) pay ¢47,500,000 in two and a half years at a 23.5% convertible rate quarterly. Which option is better for you in terms of profit?
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- You are negotiating to make a 6-year loan of $40,000 to Breck Inc. To repay you, Breck has agreed to pay $5,000at the end of Year 1, $10,000 at the end of Year 2, and $15,000 at the end of Year 3, plus a fixed but currentlyunspecified cash flow, “X”, at the end of each year from Year 4 through Year 6. Breck is essentially riskless, soyou are confident the payments will be made. You regard 8% as an appropriate rate of return on a low risk butilliquid 6-year loan. What cash flow must the investment provide at the end of each of the final 3 years to satisfyyour return requirement? (i.e. what is “X”?) I am having trouble getting the decimal number that you divide by 40,000-25110.50You are in negotiations to make a 7 - year loan of $31, 000 to DeVille Corporation. To repay you, DeVille will pay $2, 500 at the end of Year 1, $5, 000 at the end of Year 2, and $7,500 at the end of Year 3, plus a fixed but currently unspecified cash flow, X, at the end of each year from Year 4 through Year 7. You are confident the payments will be made, since DeVille is essentially riskless. You regard 8% as an appropriate rate of return on a low risk but illiquid 7 year loan. What cash flow must the investment provide at the end of each of the final 4 years that is, what is X? Select the correct answer. a. $7,037.75 b. $7, 049.05 с. $7, 003.85 d. $ 7,015.15 e. $7,026.45You are in negotiations to make a 7-year loan of $22,000 to DeVille Corporation. To repay you, DeVille will pay $2,500 at the end of Year 1, $5,000 at the end of Year 2, and $7,500 at the end of Year 3, plus a fixed but currently unspecified cash flow, X, at the end of each year from Year 4 through Year 7. You are confident the payments will be made, since DeVille is essentially riskless. You regard 8% as an appropriate rate of return on a low risk but illiquid 7-year loan. What cash flow must the investment provide at the end of each of the final 4 years, that is, what is X? A.3558.55 B.3,603.35 C.3,580.95 D.3,592.15 E. 3,569.75
- .You are negotiating to make a 7-year loan of $25,000 to Breck Inc. To repay you, Breck will pay $2,500 at the end of Year 1, $5,000 at the end of Year 2, and $7,500 at the end of Year 3, plus a fixed but currently unspecified cash flow, X, at the end of each year from Year 4 through Year 7. Breck is essentially riskless, so you are confident the payments will be made. You regard 8% as an appropriate rate of return on a low risk but illiquid 7-year loan. What cash flow must the investment provide at the end of each of the final 4 years, that is, what is X?.You are negotiating to make a 7-year loan of $25,000 to Breck Inc. To repay you, Breck will pay $2,500 at the end of Year 1, $5,000 at the end of Year 2, and $7,500 at the end of Year 3, plus a fixed but currently unspecified cash flow, X, at the end of each year from Year 4 through Year 7. Breck is essentially riskless, so you are confident the payments will be made. You regard 8% as an appropriate rate of return on a low risk but illiquid 7-year loan. What cash flow must the investment provide at the end of each of the final 4 years, that is, what is X? please provide a step by step solving on this problem, no excel sheet, please show the formulas and how the answers came about thank youYou are negotiating to make a 6-year loan of $40,000 to Breck Inc. To repay you, Breck will pay $5,000 at the end of Year 1, $10,000 at the end of Year 2, and $15,000 at the end of Year 3, plus a fixed but currently unspecified cash flow, X, at the end of each year from year 4 through Year 6. Breck is essentially riskless, so you are confident the payments will be made. You regard 8% as an appropriate rate of return on a low risk but illiquid 6-year loan. What cash flow must the investment provide at the end of each of the final 3years, that is, what is X?
- Investment X offers to pay you $5,900 per year for 9 years, whereas Investment Y offers to pay you $8,700 per year for 5 years. If the discount rate is 4 percent, what is the present value of these cash flows? If the discount rate is 14 percent, what is the present value of these cash flows?Cromwell is acquiring some land for $1,200,000 in exchange for semiannual payments of $75,000 at an interest rate of 6.35 percent. How many years will it take Cromwell to pay for this purchase? Is there a calculator solution for this?Your friend told you about an NFT (Non-fungible Token) that they think will be worth $856 in 6 years. If your required return on investments of this risk is 21.75, what is the most you should be willing to pay for it today? Round to 2 decimal places. Include a dollar sign ($) or percent (%) as appropriate. Answer:
- Computing the Present Value of a Single Amount Depp is reviewing an investment that will provide a payout of $108,000 in five years. If Depp considers a 5% interest rate (compounded annually) acceptable, what amount is Depp willing to pay for the investment today? Round your answer to the nearest whole number. Do not use a negative sign with your answer.Suppose that you expect to receive an inheritance of £10,000 in one year. You will want to put this money then on a one-year deposit. Suppose further that, as of today, you are entering into a forward rate agreement to receive 4% on £10,000 for a one-year starting in one year. What is your gain/loss when the realised one-year forward rate in one year is higher than 4%? Provide a relevant example and explain your reasoning.1. An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is this investment’s present value? Its future value? 2. You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 12% with interest paid monthly. What is the monthly loan payment? What is the loan’s EFF%?