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GaryK [48]
3 years ago
14

Present value​ (with changing interest​ rates). Marty has been offered an injury settlement of ​$12 comma 000 payable in 3 years

. He wants to know what the present value of the injury settlement is if his opportunity cost is 5​%. ​ (The opportunity cost is the interest rate in this​ problem.) What if the opportunity cost is 6.5​%? What if it is 11.5​%?
Business
1 answer:
lesantik [10]3 years ago
8 0

Answer:

If opportunity cost is 5%, PV=10,366.05

If opportunity cost is 6.5%, PV=9,934.19

If opportunity cost is 11.5%, PV=8,656.79

Explanation:

PV=Σ(\frac{CF_{t} }{(1+i)^{t} })

If opportunity cost is 5%: PV = \frac{12,000 }{(1+0.05)^{3} } =10,366.05

If opportunity cost is 6.5%: PV = \frac{12,000 }{(1+0.065)^{3} } =9,934.19

If opportunity cost is 11.5%: PV = \frac{12,000 }{(1+0.115)^{3} } =8,656.79

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Online risk exists for all businesses that conduct a portion of their operations online. Personal information, project data, and data produced by systems or procedures used by the company to conduct its business all fall under the category of vulnerable data.

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To learn more about Internet risk from the given link:

brainly.com/question/19589897

#SPJ4

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