Problem 2-15, Suburban Office Block
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Determine the NPV of a suburban office block.
Determine the NPV of a suburban office block.
Determine the NPV of the bulk carrier given revenues, operating costs, refit costs, and a scrap value.
Given a perpetuity, find the NPV of the investment.
Given an advertisement stating that you pay them for a certain number of years, and then they’ll pay you into perpetuity, determine the rate of interest if it is a fair deal.
Given a cash dividend that is expected to increase indefinitely, determine the PV of the dividend stream.
Given the interest rate, determine the PV of an asset, the approximate PV of an asset that pays a perpetuity in some future year, and finally, determine the value of a piece of land.
Given discount factors, compute the interest rate, and vice versa. Finally, determine the discount factor given that you’ve solved for the annuity factor.
Determine which company is offering you a better deal on a new car. The first company makes you pay monthly, while the second company gives you a discount off the list price.
Compute their annual savings so that they can buy the boat.
What income can Mr. Basset get each year until his death?