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lina2011 [118]
1 year ago
13

what is the present value of a deferred perpetuity that pays $141 annually with the first payment occurring at year 5? assume th

e annually compounded interest rate is 6%.
Business
1 answer:
yKpoI14uk [10]1 year ago
3 0

The present value of a deferred perpetuity is $1,938.89.

What is present value?
The present value of a prospective sum of money or cash flow stream given a specified return rate is known as its present value (PV). The present value of future cash flows is reduced by the discount rate, and the higher coupon rate, the lower the present value of future cash flows. The key to correctly valuing future cash flows, whether they are earnings or debt obligations, is determining the appropriate discount rate. The concept of present value states that a quantity of funds today is worth greater than the same amount in the long term. In other words, money gained in the long term is not as valuable as money received today.

The present value of a deferred perpetuity that pays $141 annually with the first payment occurring at year 5 is $1,938.89. This can be calculated by taking the present value of an ordinary annuity formula, which is PV = A / (1 + r)^n, and adding 5 to n. This gives the equation PV = A / (1 + r)^(n + 5), which can be simplified to PV = A / (1 + r)^n * (1 + r)^5. Thus, the present value is $141 / (1 + 0.06)^10 * (1 + 0.06)^5, which equals $1,938.89.

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Vitek1552 [10]

Answer:

c. a letter that falsely claims the writer represents a foreign bank.

Explanation:

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3 years ago
To get the benefits of vertical integration without the accompanying risks, companies can ______. (Check all that apply.)
Ganezh [65]

Companies can do the listed in order to get the benefits of vertical integration without the accompanying risksL

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<h3>What is a vertical integration?</h3>

This refers to a business strategy that allows a firm company to alter or design its operations by taking direct ownership of various stages of its production process rather than just relying fully on an external contractors or suppliers.

The risk associated with a vertical integration that could be an inability to cope with new technologies because they evolve quickly can be correct by choosing a strategic outsourcing or using a taper integration.

Therefore. the Option A & B is correct.

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7 0
1 year ago
The expectation of a fair exchange of employment obligations between an employee and employer is called?
Nesterboy [21]

The expectation of a fair exchange of employment obligations between an employee and employer is called the psychological contract.

<h3>What is the psychological contract?</h3>
  • A psychological contract, a concept developed in contemporary research by organizational scholar Denise Rousseau, represents an employer's and an employee's mutual beliefs, perceptions, and informal obligations.
  • It establishes the dynamics of the relationship and defines the specifics of the work to be done.
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  • A psychological contract is defined as a philosophy rather than a formula or predetermined plan.
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Therefore, the expectation of a fair exchange of employment obligations between an employee and employer is called the psychological contract.

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8 0
2 years ago
I need a 6 sentences paragraph of What would your ideal mentor be like?
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