0

# present value calculation

Mon 1 Aug, 2016 06:39 am
IN a recent landowner dispute, the landowner's lawyer negotiated a \$52,800,000 settlement for a 92-year-lease. The terms of the lease were reported as \$5,000,000 immediately, one million per year for five additional years (years 2 - 6), and paid in advance, then \$460,000 per year the remainder of the 92 years (years 7 - 92), also paid in advance. Based on a 6.5% discount rate, what is present value of the 10th year's payment? 25th year? 50th year? last years? What is the present value of the entire settlement?
• Topic Stats
• Top Replies
Type: Question • Score: 0 • Views: 4,197 • Replies: 0
No top replies

### Related Topics

Bays Theorem - Question by klazman
Amount of Time - Question by Randy Dandy
Stop multi-tasking. - Question by suzis114
The movie Contagion questions. - Question by acacia410
The fall of communism - Question by jtee25
[ESSAY] Indian Partition of 1947 - Question by skiiful

1. Forums
2. » present value calculation