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
finlep [7]
1 year ago
5

You are the recipient of an inheritance that will pay you and your heirs $40,000 per year forever. What is this inheritance wort

h today at a discount rate of 6. 75 percent?
Business
1 answer:
seropon [69]1 year ago
7 0

Present Value of a Perpetuity = Annual Payment ÷ Discount Rate

                                            =$40,000 ÷ 6.75

                                                 =$ 5925.92

Present inheritance = $5925.92

What does receiving an inheritance mean?

An inheritance is the collection of assets you might receive from a loved one when they pass away. It can include such things as: Cash. investment assets such as stocks or bonds. Real property, including land and real estate.

What is a beneficiary of an inheritance?

Beneficiary is the legal term for someone who will inherit assets from you, regardless of whether the asset has a beneficiary designation on it or not. Another commonly used term is heir, although in legal terms, this refers to the family members who inherit under state law from those who pass away without a will.

Learn more about inheritance of recipient :

brainly.com/question/25997947

#SPJ4

You might be interested in
Factory Overhead Rates, Entries, and Account Balance Eclipse Solar Company operates two factories. The company applies factory o
Anvisha [2.4K]

Answer:

Predetermined manufacturing overhead rate= $14.8 per machine hour

Explanation:

Giving the following information:

Factory 1

Estimated factory overhead= $18,500,000  

Estimated machine hours for year 1,250,000

T<u>o calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 18,500,000/1,250,000

Predetermined manufacturing overhead rate= $14.8 per machine hour

8 0
2 years ago
A stock has an expected return of 13.5 percent, its beta is 1.40, and the expected return on the market is 11.5 percent. What mu
uranmaximum [27]

Answer:

The risk free rate is 6.50%

Explanation:

The required rate of return is the minimum return that investors demand/expect on a stock based on the systematic risk of the stock as given by the beta. The expected or required rate of return on a stock can be calculated using the CAPM equation.

The equation is,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on market

As we know the figures for r, Beta and rM, we will input these figures in the equation to calculate risk free rate.

Let risk free rate be x.

0.135 = x + 1.4 * (0.115 - x)

0.135 = x + 0.161 - 1.4x

0.135 - 0.161  =  x - 1.4x

-0.026  =  -0.4x

-0.026 / -0.4 = x

x =  0.065 or 6.50%

r = 0.1475 or 14.75%

6 0
2 years ago
Rob, Dave, and Kelly understand the financial risks involved in starting their own brewery; that's why they've established their
Darina [25.2K]
I do believe its A.. yeap its A
8 0
2 years ago
Read 2 more answers
Corn is a perfectly competitive commodity. in the marketplace, the demand curve for corn is:
ANTONII [103]
<span>The demand curve for corn depends on what market it is needing it. If corn is needed for food for humans or for animals and if the need is normal or in addition to a current or outstanding reason makes a difference.</span>
7 0
3 years ago
A benefit of using a debit or credit card instead of cash is that it provides a paper record of a purchase. A proof of purchase
crimeas [40]
Hey there,

A benefit of using a debit or credit card instead of cash is that it provides a paper record of a purchase. A proof of purchase is often needed in all of the following situations except: Equipment rental
<span>
~Jurgen


</span>
7 0
2 years ago
Read 2 more answers
Other questions:
  • Nature's Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef's salad selling for $7
    9·1 answer
  • If the Chief Justice of the Supreme Court is part of the majority, he or she gets to write the _______.
    5·1 answer
  • A 180-day $3 million CD has a 4.25 percent annual rate quote. If you buy the CD, how much will you collect in 180 days?
    14·1 answer
  • Suppose that you are a big fan of the Harry Potter books. You would love to own a copy of the very first printing of the first​
    6·1 answer
  • What are two good interview questions?<br> PLZ help!!
    11·1 answer
  • g An increase in taxes when the economy is above full employment ​ ______ aggregate demand and real​ GDP, and the price level​ _
    15·1 answer
  • Information management is the ________ of a company. Information management is concerned with the collection, preservation, stor
    10·1 answer
  • Company purchased equipment on January​ 1, 2017 for $ 600 comma 000. The residual value is $ 60 comma 000 and the estimated usef
    14·1 answer
  • Liam works at an IT firm. He finds that the activities carried out by his team are very complex and struggles to complete his ta
    14·1 answer
  • On September 1, ABC Company borrowed $50,000 on a 6%, 9-month note payable to XYZ National Bank. Given no previous adjusting ent
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!