Finance
posted by Justin .
I have a case study to do and I'm not sure how to go about it. I need to find the present value for three different offers, all of which have a 10% rate and ordinary annuities. This is the first offer:
$1,000,000 now
$200,000 each year for years 6 through and including year 15
Also, if the product did over $100 million in cumulative sales by the end of year 15, he would receive an additional $3,000,000 at that time. Dr. Wolf thought there was a 70 percent probability this would happen.
So my question is how do I even begin calculating the present value, cause to do that I need the future value and I'm not sure how to get that either. Any help would be appreciated. Thank you.
Respond to this Question
Similar Questions

Financial Management
Hi, would anyone be willing to help with this. Thanks :) 2. Find the following values: a) An intial $500 compounded for 10 years at 6 percent b) An intial $500 compounded for 10 years at 12 percent c) The present value of $500 due … 
Financial Management
HI, could anyone help with this please. :) 2. Find the following values: a) An intial $500 compounded for 10 years at 6 percent b) An intial $500 compounded for 10 years at 12 percent c) The present value of $500 due in 10 years at … 
Annuities
Can someone tell me if this is ordinary annuity of future or ordinary values sinking funds present value or what is it. The question is You are earning an average of 46500 and will retire in 10 years. If you put 20% of your gross average … 
Science, Technology and Culture
I have to create a case study on The Impact of technology on telecommunications. I do not know where to start or what a case study looks like. I have to have two sources that are interviews. I work for a AT&T Call Center but I don't … 
accounting
I need an understanding of a few matters in my accounting class: 1) what are annuities and why is it necessary to calculate there present value? 
Business Math 205
Calculate the PRESENT VALUE of the following ORDINARY ANNUITIES. Round to the nearest cent when necessary. Annuity Payment:($3,000) Payment Frequency: (Every Year) Time Period YRS:(15)Nominal Rate%:(10)Interest Compounded:(Annually)Present … 
Finance
Suppose you just inherited a gold mine. This gold mine is believed to have three years worth of gold deposit. Here is how much income this gold mine is projected to bring you each year for the next three years: Year 1: $49,000,000 … 
finance, please help
1. Calculate the present value of an investment given the following information: (a) Years—20, (b) Rate—10%, and (c) Future Value—$20,000. 2. Calculate the future value of an investment given the following information: (a) Years—10, … 
Health
I have to create a nursing case study. I have everything I need, but am not sure how to present it. Details: 67 year old causcasain male diagnosed with emphysema returns with shortness of breath, etc. supposedly associated with CHF. … 
finance
. Suppose you just inherited an gold mine. This gold mine is believed to have three years worth of gold deposit. Here is how much income this gold mine is projected to bring you each year for the next three years: Year 1: $49,000,000 …