Purchase Solution

Present Value and Investment Calculations

Not what you're looking for?

Ask Custom Question

Question 20: (1 point)
(Ignore income taxes in this problem.) At an interest rate of 19%, approximately how much would you need to invest today if you wanted to have $2,600,000 in 11 years? (Round "PV Factor" to 3 decimal places.)

$390,664
$384,800
$389,546
$136,842

Purchase this Solution
Solution Summary

This provides the steps to calculate the Present value

Solution Preview

Future value= Present value*(1+r)^n
Present value= 2600000/(1+19%)^11
=$384,800 =Answer

Note:
*** Remember, this service ...

Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • Mr. Darden sold his house for $165,000. He bought it for $55

    What is the annual return on his investment? (Convert this problem into a present value yield, by using the table in the back of your text. Show all work/calculations/formulas)

  • Capital Investment Decisions for Magnificent Modems, Inc.

    Why should all capital investment proposals include time value of money (present value) calculations of future cash flows that are to be received from the alternative investments? Please see the attachments.

  • Key financial metrics for this capital budgeting projectkey financial metrics for this capital budgeting project

    This is the discount rate of return for an investment proposal that equates the present value of initial cost of the investment with the present value of initial cost of investment with the present value of the expected net cash flows.

  • Present and Future Value Relationship

    598223 Present and Future Value Relationship Please explain and support your reactions to the following questions: •What is the relationship between Present Value and Future Value? •What are the calculations involved with PV and FV?

  • Net present value and profitability index

    328932 Calculating net present value and profitability index Please help with the following solution with step by step calculations. Calculate the net present value and profitability index of an uneven cash flow.

  • Present Value at Various Interest Rates

    (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Present value $ What is the present value at 16 percent?

  • Values and statement of cash flows

    Show your calculations. 8. Present value of an investment in equipment. (Tables needed.)

  • Payback methods and depreciation expense

    If a prospective investment has a positive net present value (i.e., the present value of cash inflows exceeds the present value of cash outflows), then it clears the minimum cost of capital and is deemed to be a suitable undertaking.

  • Present value of the expected after-tax cash profits

    If a prospective investment has a positive net present value (i.e., the present value of cash inflows exceeds the present value of cash outflows), then it clears the minimum cost of capital and is deemed to be a suitable undertaking.

  • Net Present Value (NPV)

    NPV stands for Net Present value. NPV= Present value of Future cashflows- Initial investments. If Net present value is Positive then one should accept the project. Solution discusses the Net Present Value (NPV)

View More Related Solutions