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
lions [1.4K]
3 years ago
12

If you are going to receive $70,000 for 20 years starting 5 years from now, what is the present value of the cash flows discount

ed at 12%? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)

Business
1 answer:
schepotkina [342]3 years ago
4 0

Answer:

336,405.28

Explanation:

Present value can be found by discounting the cash flows at the discount rate.

Present value can be found using a financial calculator:

Cash flow from year 1 to 4 = 0

Cash flow from year 5 -25 = $70,000

Discount rate = 12%

Present value = $336,405.28

I hope my answer helps you

You might be interested in
What are supertrends that are currently affecting the future of business?
Stels [109]

Available options are:

A. Simple, one-size-fits-all solutions are becoming more popular.

B. Competitive advantage is coming increasingly from knowledge, not information.

C. The overall speed of product releases is decreasing.

D. The way we work is being impacted by offshore suppliers.

Answer:

Option B and D are correct answers.

Explanation:

The reason is that the countries that are gaining on competitive advantages because of increased investment in knowledge and research and development. The companies in the country then apply that knowledge earned by the investment in the research and development and gain competittive advantage over the rival products.

This competitive advantage decides the future of the business because higher are the competitive advantages higher are the growth and profit of the business investments.

The way we are working is going to impact the offshore suppliers in terms of technology, pricing, marketing, sales and after sales services, etc all have implications on the rivals, customers, suppliers and whole of the society. The customer urges the companies to use environmental friendly operations in manufacturing of products, the company urges its suppliers and supplier urges its suppliers and likewise we have a chain of system enforcement. So yes it is true the way we work in a society affects the suppliers in the other society.

8 0
3 years ago
Information from observers should be used as a supplement to information from incumbents. Identify the statement that is most li
8090 [49]

Answer:C. Incumbents provide accurate information, but they may have an incentive to exaggerate what they do to appear more valuable to the organization.

Explanation:The Information from external observers are very vital to Organisational success,observers are external partners to the business or organisation,it should be used to supplement what information is gotten from the incumbents because sometimes incumbents may have an incentive to exaggerate what they do to appear more valuable to the organization,which will send wrong signals and affect the business harshly or adversely.

4 0
3 years ago
Which of the following statement is not true about derivative contracts?
8090 [49]

Answer:

a. A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.

Explanation:

The derivative contract is a contract in which the contract is to be done between two or more parties regarding the value i.e. depend upon the financial asset i.e. underlying. It involves the bonds, commodities, etc

So according to the given options, the option a is correct as long position is a bet in which the number is to be decline while on the other hand in the short position the number would increase

4 0
3 years ago
The Coase Theorem states that
choli [55]

Answer:B. if transaction costs are​ low, private bargaining will result in an efficient solution to the problem of externalities.

Explanation:

The coarse theorem:

If there is a conflict between parties this will lead to an effecient results irrespective of who won the right to the property as long as the transaction cost related to the price negotiation is insignificant.

7 0
3 years ago
Assume that Jing Company earned $29,400 cash revenue and incurred $18,500 in cash expenses in Year 3. The company uses the strai
ElenaW [278]

Answer:

Explanation:

In every single company, the main aim of installing an office equipment is to make profit. After the office equipment made a revenue of $29400, Jing Company incurred expenses of $18500. The value of the equipment was $29400- $18500= $10900. It was sold for $10400 meaning that the net income of the equipment was $10400-$10900= -$500. Therefore, it will incur a net loss of $500.

8 0
3 years ago
Other questions:
  • In three to five sentences, describe how you would create a graph.
    10·1 answer
  • Lisi Crichton operates a variety store. Her brother does custom welding and made some racks to hold videos. Lisi gave her brothe
    15·1 answer
  • Direct materials used for the period cost $66,000; Direct labor cost $80,000; Applied overhead was $60,000; Beginning work in pr
    14·1 answer
  • The primary purpose of protective covenants is to help:
    5·1 answer
  • Colin wants to set up an aquarium.. He already has a tank, but needs to purchase fish, filters, and plants. If the cost of the f
    14·1 answer
  • 06.06 segment exam A period of economic stability began in the 1980s. In 2001, prices began to increase. In 2007, an economic cr
    6·1 answer
  • Chris paid $100,000 for a single-family home on July 1, 2019, and immediately placed it in service as residential rental propert
    9·1 answer
  • What is a bond? in your own words. economics.​
    13·2 answers
  • How can a country experience economic growth?
    13·1 answer
  • Which term describes a situation where the quantity of output rises, but the average cost of production falls?.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!