Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$6,001.61
Zin$1,502.43
Carolll$1,433.33
Visitor$1,268.61
cuiting$1,249.70
Jade$1,145.80
Visitor$1,108.33
Skywalke...$1,070.00
Visitor$1,051.28
mm11$1,050.33
ninalee$1,039.70
Visitor$1,024.70
Visitor$1,005.61
Visitor$966.00
victor$934.70
zy$919.70
Doris$889.70
Visitor$840.00
Yuan$823.33
Emma Lu$810.00
 

Question 520  NPV, DDM, no explanation

The following cash flows are expected:

  • Constant perpetual yearly payments of $70, with the first payment in 2.5 years from now (first payment at t=2.5).
  • A single payment of $600 in 3 years and 9 months (t=3.75) from now.

What is the NPV of the cash flows if the discount rate is 10% given as an effective annual rate?




Copyright © 2014 Keith Woodward