1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MArishka [77]
1 year ago
14

The present value of $121,000 expected one year from today at an interest rate (discount rate) of 10 percent per year is:_______

Business
1 answer:
Cerrena [4.2K]1 year ago
4 0

The present value of $121,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is (C) $110,000.

<h3>What is the discount rate?</h3>
  • The discount rate is the interest rate charged to commercial banks and other financial institutions for Federal Reserve Bank short-term loans.
  • The interest rate used in discounted cash flow (DCF) analysis to assess the present value of future cash flows is referred to as the discount rate.
  • The formula for Discount Rate: First, the present value is divided by the value of a future cash flow (FV) (PV) The previous step's result is then multiplied by the reciprocal of the number of years (n) Finally, the discount rate is calculated by subtracting one from the value.
  • As an example, the present value of $121,000 projected to be received one year from today at a ten percent annual discount rate is $110,000.

Therefore, the present value of $121,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is (C) $110,000.

Know more about discount rates here:

brainly.com/question/7459025

#SPJ4

The complete question is given below:
The present value of $121,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is:

A) $121,000

B) $100,000

C) $110,000

D) None of the above

You might be interested in
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following
iren [92.7K]

Answer:

1.  73 %

2. 27 %

3. $60,000

4. Ways to increase projected operating income without increasing total sales revenue :

  1. Reduce the variable costs per unit
  2. Reduce fixed overheads

Explanation:

Contribution Margin Ratio = Contribution / Sales × 100

Where,

Contribution = Sales - Variable Costs

                     = $88,000 - $23,760

                     = $64,240

Then,

Contribution Margin Ratio = $64,240/ $88,000 × 100

                                           = 73 %

Variable Cost Ratio = Variable Cost / Sales × 100

                                = $23,760 / $88,000 × 100

                                = 27 %

Break-even sales revenue = Fixed Costs ÷  Contribution Margin Ratio

                                            = $43,800 ÷ 0.73

                                            = $60,000

<u>Ways to increase projected operating income without increasing total sales revenue :</u>

  1. Reduce the variable costs per unit
  2. Reduce fixed overheads
7 0
2 years ago
he director of capital budgeting for See-Saw Inc., manufacturers of playground equipment, is considering a plan to expand produc
kicyunya [14]

Answer and Explanation:

The computation is shown below:

Debt = D ÷ (E + D)

= 0.8 ÷ (1 + 0.8)

= 0.4444

Now

Weight of equity = 1 - Debt

= 1 - 0.4444

= 0.5556

As per Dividend discount model

Price = Dividend in 1 year ÷ (cost of equity - growth rate)

40 = $2 ÷ (Cost of equity - 0.06)

Cost of equity = 11%

Cost of debt

K = N

Let us assume the par value be $1,000

Bond Price =∑ [(Annual Coupon) ÷ (1 + YTM)^k] + Par value ÷ (1 + YTM)^N

k=1

K =25

$804 =∑ [(7 × $1000 ÷ 100)/(1 + YTM ÷ 100)^k] + $1000 ÷ (1 + YTM ÷ 100)^25

k=1

YTM = 9

After tax cost of debt = cost of debt × (1 - tax rate)

= 9 × (1 - 0.21)

= 7.11

WACC = after tax cost of debt × W(D) + cost of equity ×W(E)

= 7.11 × 0.4444 + 11 × 0.5556

= 9.27%

As we can see that the WACC is lower than the return so it should be undertake the expansion

5 0
2 years ago
Honeybees perform a waggle dance to indicate the direction of
11111nata11111 [884]
They perform a " waggle dance" to indicate the direction of the hive and also to tell them how to get to flowers- it's sort of like a map for them
3 0
3 years ago
Read 2 more answers
According to price progression, the lowest prices caskets are placed in the _______ quartile.
AlexFokin [52]

The lower-priced caskets are positioned in the higher mark-on quartile in accordance with price progression. Caskets that cost less will be marked up more.

<h3>What is Pricing Method?</h3>

The pricing method are the ways in which the cost of goods and services can be determined after taking into account all the variables influencing the pricing strategy as a whole, including the product or service, the competition, the target market, the product's life cycle, the firm's expansion plans, etc.

A pricing strategy is a plan or technique for choosing the most competitive price for a good or service. It assists you in setting prices while taking customer and market demand into account in order to maximize profits and shareholder value.

With this price strategy, as the consumer's investment rises, so does the value to them as opposed to value progressive pricing. An approach to pricing in which the cost of the casket and the markup are inversely related.

To learn more about pricing strategy, refer to;

brainly.com/question/20927491

#SPJ4

7 0
2 years ago
An advertising agency conducted a research to analyze the effects of advertising on the buying behavior of consumers. It was fou
Feliz [49]

Answer:

There is a positive linear relationship between the frequency of advertising and the sales of the advertised product.

Explanation:

A linear relationship is stablished between 2 quantitative variables that have constant proportionality. In this case, the variables are directly proportional to eachother as they move in the same direction. In addition, they are both increasing. So, we can conclude these variables have a positive linear relationship.

8 0
3 years ago
Other questions:
  • Glossamer Inc., a company owned by George and Alex, faces huge debts and is eventually shut down due to bankruptcy. The company'
    9·1 answer
  • Magnus Industries has the following data:
    13·1 answer
  • Define rent seeking. Rent seeking is attempting to transfer surplus from one group to another, for firms it usually involves: re
    8·1 answer
  • What do the two scenarios have in common? Check all that apply.
    12·2 answers
  • The purchase of inventory for cash will cause the current ratio to decrease. true false
    15·1 answer
  • What economic theory did Ronald Reagan base his policies upon after becoming President in 1980?
    12·1 answer
  • Innovation and enterprise can help to develop new and niche markets - True or False?
    15·1 answer
  • Leora had some money in her wallet. She spent $18.62 buying groceries and had $43.55 left. How much money did she have in her wa
    9·2 answers
  • Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $249,400. The equipment wa
    6·1 answer
  • As environmental uncertainties increase, managers must develop techniques and methods for collecting, sorting through, and inter
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!