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PDtax
PDtax, CPA firm owner, business consultant, author
Category: Single Problem
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Experience:  I have been a business consultant and college instructor for years.
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Mary invest $100 today at 11.3% annual intrest. What will

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Mary invest $100 today at 11.3% annual intrest. What will this investment be worth in 70 years? Ans Input cash flows as a 70 year period, zero value annuity, with time 0 cash flow of $100 NTV=$179,746.94 what the discount rate in percent
Submitted: 1 year ago.
Category: Single Problem
Expert:  insearchoftheanswer replied 1 year ago.
Hi. My name is ***** ***** I look forward to helping you. Can you clarify what you mean by: "Ans Input cash flows as a 70 year period, zero value annuity, with time 0 cash flow of $100 NTV=$179,746.94 what the discount rate in percent?"
Customer: replied 1 year ago.
We are using a dcf caculater and we are trying figure out the inputs. We are trying to figure out the discount rate
Expert:  insearchoftheanswer replied 1 year ago.
Thanks for responding. I don't understand your assumptions well enough to be confident that I can provide a complete and accurate assessment. Therefore, I am going to opt out to open your question up to all experts so another expert can hopefully timely provide you the information you seek. Please do not respond to this post as it will only slow the process of such an expert picking up your question. Take care.
Expert:  PDtax replied 1 year ago.
Hi from Just Answer. I'm PDtax. I will assist. I get the same FV you do, $179,746.94 with the $100 down payment. I like to discount potential investments, even in today's marketplace, at 10% or better. Let's say I need to earn 10% on this investment, and there is 70 years to run. I would be willing to pay $227.60 for the fv of $179,746.94 in 70 years. The discount rate you demand is dependent on your investment goals and time horizon. 70 years is a long time to wait for the big payoff. For example, at 60 years, at 11.3%, the original $100 is worth 61,618. If this answers your question, please rate my response three stars or higher to close out your inquiry. If you need something more, let me know. I'm PDtax.

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