Explore BrainMass

What is the present value of future benefits?

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

I have several accounting problems that I cannot do. I need help with the formulas for the problems. ex. Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year; $2.20 at the end of the second year; and $2.40 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $33.00. What is the present value of all future benefits if a discount rate of 11 percent is applied? (Round all values to two places to the right of the decimal point).

© BrainMass Inc. brainmass.com October 24, 2018, 9:32 pm ad1c9bdddf

Solution Preview

Here we have to find the present value of all the cash inflows that Jack Hammer is ...

Solution Summary

This solution determines the present value.

See Also This Related BrainMass Solution

IKEA: Past, Present and Future IMD case study

Please refer to the attached document for the IKEA case study.

View Full Posting Details