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ziro4ka [17]
3 years ago
13

What is the discounted payback period for these cash flows if the initial cost is $11,800?

Business
1 answer:
valentinak56 [21]3 years ago
3 0
<span>C) initial cost = 11800 </span>

This time it will take you full 4 years

5300/1.13^4 = 3250.59

<span>14855.44 - 8800 = 3055.44 </span>

<span>cash required in year 4 = 3250.59 - 3055.44 = 195.15 </span>

<span>time required in year 4 = 195.15 / 3250.59 = 0.06 </span>

<span>Discounted payback period = year 1 + year 2 + year 3 + 0.06 = 3.06 years</span>
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Match each type of tax with an example of its use.
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<u>Answer:</u>

Excise tax              :$0.30 tax on a gallon gasoline

Consumption tax  : 20% tax on wages earned

Income tax            : 9% tax on the sale of luxuries

<u>Explanation:</u>

Excise tax are the taxes charged to individuals on purchase of certain goods. Excise taxes are included with the price of the product. One of the major excise tax is charged on the gasoline for vehicles.

Consumption tax are the indirect taxes that are charged on usage of goods and services. They are collected in the form of sales tax and value added tax.

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sladkih [1.3K]

Answer:

\mathbf{current  \ price \  of \  the \ bond=  \$848.78}

Explanation:

The current price of the bond can be calculated by using the formula:

current  \ price \  of \  the \ bond= ( coupon \times  \dfrac{ (1- \dfrac{1}{(1+YTM)^{no \ of \ period }})}{YTM} + \dfrac{Face \ Value }{(1+YTM ) ^{no \ of \ period}}

current  \ price \  of \  the \ bond= ( \dfrac{0.064 \times \$1000}{2} \times  \dfrac{ (1- \dfrac{1}{(1+ \dfrac{0.091}{2})^{8 \times 2}})}{\dfrac{0.091}{2}} + \dfrac{\$1000 }{(1+\dfrac{0.091}{2} ) ^{8 \times 2}})

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