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Cloud [144]
2 years ago
13

An investment will pay you $16,000 in 6 years. the appropriate discount rate is 10 percent compounded daily. What is the present

value?
Business
1 answer:
natita [175]2 years ago
3 0

An investment will pay you $16,000 in 6 years. the appropriate discount rate is 10 percent compounded daily. The Present Value is $8,781.71.

Investment definition is an asset received or invested in to build wealth and store cash from the difficult earned profits or appreciation. investment which means is typically to obtain an additional source of earnings or benefit and take advantage of the investment over a particular time period.

In the most sincere sense, making an investment works while you purchase an asset at a low charge and sell it at a higher price. This kind of return for your investment is referred to as a capital advantage. earning returns through promoting a property for an income—or figuring out your capital gains—is one manner to make cash investing.

Investing is an effective manner to position your cash to work and probably construct wealth. smart making an investment may allow your money to outpace inflation and increase in price. The extra boom capability of investing is generally because of the strength of compounding and the danger-go-back tradeoff.

Present Value

Future Value = $16,000

Number of compounding periods (n) = 2,190 days [6 Years x 365 Days]

Interest rate (r) = 0.10/365 = 0.000273972602739726

Present Value = Future Value / (1 + r)^n

Present Value = $16,000 / (1 + 0.000273972602739726)^2190

Present Value = $16,000 / 1.82196907070351

Present Value = $8,781.71

Therefore, the Present Value is $8,781.71

Learn more about investment here brainly.com/question/25300925

#SPJ4

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Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,700, $10,700, and
vovikov84 [41]

Answer:

Total PV= $26,176.63

Explanation:

Giving the following information:

Cash flow:

Cf1= $5,700

Cf2= $10,700

Cf3= $16,900

<u>To calculate the price of the investment now, we need to use the following formula on each cash flow:</u>

PV= Cf / (1+i)^n

PV1= 5,700/1.11= 5,135.14

PV2= 10,700/1.11^2= 8,684.36

PV3= 16,900/1.11^3= 12,357.13

Total PV= $26,176.63

7 0
2 years ago
You are evaluating the balance sheet for PattyCake’s Corporation. From the balance sheet you find the following balances:
goldenfox [79]

Answer:

Explanation:

Current Assets are those asset which will be liquidated within next one year.

cash and marketable securities        $360,000

accounts receivable                           $1,280,000

inventory                                             <u>$2,180,000</u>

Total Current Assets                          <u>$3,820,000</u>

Current Liabilities are those which is payable within next one year.

accrued wages and taxes                   $540,000

accounts payable                                $840,000

notes payable                                      <u>$680,000</u>

Total Current Liabilities                       <u>$2,060,000</u>

Current ratio measures the capability of a business to pay the current liabilities if it becomes due.

Current Ratio = Current Assets / Current Liabilities = $3,820,000 / $2,060,000 = 1.85 times

5 0
3 years ago
Boilermaker House Painting Company
Oksi-84 [34.3K]

Answer:

Explanation:

The journal entries are shown below:

1. Account receivable A/c Dr $20,000

          To Deferred revenue A/c $20,000

(Being the paint house on account is recorded)      

2. Equipment A/c Dr $21,000

         To Cash A/c $21,000

(Being the equipment is purchased for cash)

3. Supplies A/c Dr $3,500

            To Accounts Payable A/c $3,500

(Being the office supplies are purchased on credit basis)

4. Salaries expense A/c Dr $4,200

        To Cash A/c $4,200

(Being the employees salaries are paid for cash)

5. Advertising expense A/c Dr $1,000

        To Cash A/c $1,000

(Being the advertising are purchase for cash)

6.  Rent expense A/c $5,400

                To Cash A/c $5,400

(Being the rent is paid for cash)

7. Cash A/c Dr $15,000

      To Account receivable A/c $15,000

(Being the cash is received)

8. Cash A/c Dr $6,0000

      To Deferred revenue $6,000

(Being the cash is received)

8 0
2 years ago
Define the term communication
Kazeer [188]

the imparting or exchanging of information or news.

4 0
3 years ago
The Federal Reserve wants to change the nominal interest rate from 7% to 5%. What action
alisha [4.7K]

Answer:

the answer is a

Explanation:

i just took the usatestprep

6 0
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