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Zinaida [17]
3 years ago
12

At an annual effective interest rate of i, i > 0, the following are all equal: (i) the present value of 10,000 at the end of

6 years; (ii) the sum of the present values of 6,000 at the end of year t and 56,000 at the end of year 2t; and 60 THE BASICS OF INTEREST THEORY (iii) 5,000 immediately. Calculate the present value of a payment of 8,000 at the end of year t 3 using the same annual effective interest rate.

Business
1 answer:
iVinArrow [24]3 years ago
5 0

Answer:

PV = 1414

Explanation:

The pictures attached below shows the full explanation for the problem and it is so explanatory. i hope it helps you, thank you

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A listing of all possible returns on an investment, with a chance of occurrence assigned to each return is known as _____.
Anna35 [415]
Answer: Probability Distribution
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3 years ago
A machine would cost $100,000, and would generate revenues of $21,000 per year. However, O&M costs would be $7,000 per year.
fgiga [73]

Answer:

(a) What is the net present value of this potential investment?

Net present value of Investment is $(3,903)

(b) Should you invest in this machine?

We should not invest in this investment because Net present value of this investment is negative by discounting Minimum acceptable rate of return.

Explanation:

Present Values:

Revenue                    $144,146

O&M Cost                  ($48,049)

Initial Investment      <u>$(100,000)</u>

Net Present value     $(3,903)

Working :

Present Value Calculation = P x ( (1- ( 1 + r )^-10) / r

Revenue = $21,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 144,146

O&M Costs = $7,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 48,049

8 0
3 years ago
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Why is the uninoculated control sector relatively unnecessary in this test dnase?
Len [333]
<span>there is typically enough medium that is not cleared to show "no reaction"</span>
7 0
3 years ago
Seven years ago, you paid $324,800 to purchase a rental house. the maintenance expenses average $200 a month and property taxes
Mariulka [41]

The value that would be assigned to this house if you decide to use it as your office would be $ 425300

<h3>How to solve for the value of the house using opportunity cost</h3>

To get the value of the house, you have to get the opportunity cost of the house. This is the foregone alternative or benefits forgone due to another choice.

The formula is opportunity cost = Apprised Value - Selling costs

The apprised value = $439,500.

selling cost =  $14,200

$439,500 - $14,200

= $ 425300

Hence the value that should be assigned to it is $ 425300

Read more on opportunity cost here:

brainly.com/question/1549591

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3 0
2 years ago
The difference between a​ firm's operating income and income before taxes is​ _____. The difference between a​ firm's ​before-ta
monitta

Answer: Option A

Explanation: Operating income refers to the income that the company earns from performing its core operations. It is also denoted as EBIT. Thus, the difference between operating income and income after tax is the tax that has been deducted from the operating income.

While calculating accounting profit, opportunity cost is not deducted from the revenue hence before tax and after tax depicts the investments that were made to earn that profit.

3 0
2 years ago
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