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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

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Great Harvest Bakery purchased bread ovens from New Morning Bakery. New Morning Bakery was closing its bakery business and sold
ddd [48]

Answer:

Particulars                                  Amount

Purchase price                         $700,000

Add: Freight cost                     $35,000

Add: Electrical connections    $5,000

Add: Labor costs                      $37,800

Add: Bred dough used            $900

Add: Safety guards                  <u>$1,500</u>

Total cost of Equipment         <u>$780,200</u>

<u></u>

Note: Repairs cost of $5,000 will not be included

5 0
3 years ago
If the economy booms, Meyer&amp;Co. stock will have a return of 20.4 percent. If the economy goes into a recession, the stock wi
Mnenie [13.5K]

Answer:

The standard deviation of the returns on the stock is 15.56%(Approx).

Explanation:

Expected Return=Respective return*Respective probability

=(20.4*0.67)+(-12.7*0.33)=9.477%

probability Return probability*(Return-Expected Return)^2

0.67          20.4 0.67*(20.4-9.477)^2=79.93899243

0.33          -12.7 0.33*(-12.7-9.477)^2=162.3003786

Total=242.239371%

Standard deviation=[Total probability*(Return-Expected Return)^2/Total probability]^(1/2)

=15.56%(Approx).

4 0
3 years ago
A one-brand-name strategy is useful when the marketer wants the brand to appear to be a local brand, or when regulations require
Phoenix [80]
B. false

A one brand name strategy would be like McDonalds, Call everything the McRib, McDouble, it makes it nationlized, not localized
5 0
3 years ago
Kellen orders 1,000 pounds of strawberries from Lucy so he can make his famous strawberry sundaes at his ice cream store. Lucy s
Zanzabum

Answer:

B. Rescission and Restitution

Explanation:

4 0
3 years ago
In a perfectly competitive​ market, all of the following statements are true​ except: A. Marginal revenue is the same as price.
Rashid [163]

Answer: Marginal revenue is equal to price times quantity

Explanation:

A perfectly competitive market is a market where there's a large number of both the producers and the consumers have full and symmetric information.

In a perfectly competitive​ market, the marginal revenue is the same as price and the marginal revenue curve is the same as the demand curve facing sellers.

It should be noted that the statement that the marginal revenue is equal to price times quantity is incorrect. The total revenue is equal to price times quantity.

6 0
3 years ago
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