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ZanzabumX [31]
3 years ago
7

If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end of each year for the next seven years, plus

an extra $6,000 at the end of the seventh year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 10% return on investments?
Business
1 answer:
nikitadnepr [17]3 years ago
3 0

Answer:

Net Present Value = $1,762.95

Explanation:

Equal payments made at the end of each year implies that the cash inflows from year 1 to 7 form an annuity where:

PVof An Ordinary Annuity= \frac{PMT[1-(1+i)^{-n} ] }{i}

where PMT is the the equal payment cash inflow received at the end of each period  and

\frac{[1-(1+i)^{-n} ] }{i} = The present value of an annuity factor for n years at i%

The present value of an annuity factor for 7 years at 10% equals

\frac{[1-(1+0.1)^{-7} ] }{0.1}=4.8684

therefore: Net Present value of this investment given a 10% return o investments equals

-50,000+10,000*4.8684+\frac{6,000}{1.1^7}=1,762.95

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Government is typically a​ ________.
xxTIMURxx [149]
Answer: D. net demander of funds because it borrows more than it saves

The government incurs more debts than gain profits as shown by most financial reports. The government is viewed similarly to that of business firms being net demanders by loaning huge amounts to financial institutions indirectly. The indirect borrowing done by government is done through debt security selling. 
8 0
3 years ago
Northwest Fur Co. started 2021 with $105,000 of merchandise inventory on hand. During 2021, $510,000 in merchandise was purchase
Nookie1986 [14]

Answer:

The ending inventory by using the gross method is $243,011

Explanation:

Purchases = Net purchases + Freight inwards

Purchases = 491,111 + 8,900

Purchases = 500,011

When Net purchase = Gross Purchase - Purchase return - Discount

Net purchase = 510,000 - 3,700- 15,189

Net purchase = 491,111

Working

Discount = (Purchases - Purchase return) × Discount rate

Discount = (510,000 - 3,700) * 3%

Discount = 15,189

Ending inventory = Beginning inventory + Purchases− Cost of good sold

Ending inventory = (105,000 + 500,011) - 362,000

Ending inventory = $243,011

Thus, the ending inventory by using the gross method is $243,011.

4 0
4 years ago
Determine which are risks that discourage international investing and which are opportunities.
andrey2020 [161]

Answer:

<u>Opportunities</u>

Faster and more information

When information is bountiful and disseminated speedily, investors are more confident that the financial system is strong and will be more likely to invest.

Liquidity,

Investors love being able to change their assets to physical money as soon as possible. If this is hard in a country, they will not invest.

Change in government restrictions

When Government restrictions that limit opportunities are lifted, investors come in larger numbers to take advantage of these new opportunities.

<u>Risks </u>

Financial services outside of regulation

Investors would prefer that the law is able to protect their assets and so will shun opportunities outside regulation.

Hot money

If there is too much Hot money going in and out of the economy, investors will be worried that too much money could leave the country at the slightest change in interest rates.

Information gap

Information should be widely available. If it is usually concealed from international partners, this can damage portfolios.

Interrelated international capital market

Independent Capital markets are able to withstand problems going on in other capital markets. When a nation's capital market is too interrelated with others this is risky.

Reducing risk reduction

A nation acting to reduce measures that reduce risk is a red flag. Investors want the least risky asset for a certain amount of return.

3 0
3 years ago
Typically homes ____ over time and cars_____over time
Anit [1.1K]
<span>Typically homes increase in value over time and cars decrease in value depreciate over time </span>
4 0
4 years ago
Read 2 more answers
General Motors operates several divisions in supplying cars, trucks, vans, and SUVs to its customers. Each division engages the
fomenos

Answer: Monopolistic

             

Explanation: In simple words, monopolistic refers to a structure under which the industry constitutes many producers that sells differentiated products and no one product is the perfect substitute of the other.

In the given case, the firms are few but they are manufacturing slightly different automobiles for the customers so that they can build a brand image and customer loyalty.

Hence from the above we can conclude that the correct option is B.

5 0
4 years ago
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