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bixtya [17]
3 years ago
13

You have been offered a project paying​ $300 at the beginning of each year for the next 20 years. What is the maximum amount of

money you would invest in this project if you expect 9 percent rate of return to your​ investment?
Business
1 answer:
Vitek1552 [10]3 years ago
8 0

Answer:

The project is worth $2,738.57.

Explanation:

Giving the following information:

You have been offered a project paying​ $300 at the beginning of each year for the next 20 years. The rate of return is 9%.

To calculate the present value, first, we need to calculate the final value:

FV= {A*[(1+i)^n-1]}/i

A= annual pay= 300

n= 20

i= 0.09

FV= {300*[(1.09^20)-1]}/0.09

FV= $15,348.06

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 15,348.06/1.09^20= $2,738.57

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A banker's acceptance A. is a draft drawn on a bank and paid by that bank when presented to it. B. may be accepted by the bank f
bulgar [2K]

Answer: Option (D) is correct.

Explanation:

A banker's acceptance is an instrument that represents the promised payment by the bank in the future. This payment is accepted as a time draft by the bank and is to be drawn on a particular deposit. This draft is having all the information that is related to the future payment amount, date of the payment and the party to which the payment to be made. This acceptance can also be traded until the date of maturity.

3 0
3 years ago
An operations manager is performing a factor-rating analysis to help her choose an outsourcing provider. She is focusing on thre
andreev551 [17]

Answer:

30.8

Explanation:

The solution of factor-rating score for Ling Services is provided below:-

Factor-rating score = (Weight for Factor A × Rating for Factor A) + (Weight for Factor B × Rating for Factor B) + (Weight for Factor C × Rating for Factor C)

= (0.50 × 30) + (0.20 × 46) + (0.30 × 22)

= 15 + 9.2 + 6.6

= 30.8

So, we have calculated the factor-rating score for Ling Services by using the above formula.

8 0
3 years ago
when pietro, a new restaurant owner, is determining which products to offer on his menu, he is involved in the management functi
Arte-miy333 [17]

When pietro, a new restaurant owner, is determining which products to offer on his menu, he is involved in the management function of planning.

This statement is true.

Planning means looking ahead and chalking out the  future courses of action to be followed. It is a preparatory step of every management . It is a systematic activity which determines the process of  when, how and who is going to perform a specific job.

Planning is a detailed programme which is related to  future courses of action.

To know more about planning here:

brainly.com/question/22590420

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5 0
1 year ago
Which of the following is true of normal shortages? They do not include theft and shrinkage. These goods are no longer available
never [62]

Answer:

<h2>The correct answer here would be the 1st option given in the answer choices or options or They do not include theft and shrinkage.</h2>

Explanation:

  • From a business standpoint, normal shortages basically indicate comparatively lower inventory availability of goods and services based on their consumer demand or respective sales orders by consumers or buyers.
  • Normal shortage implies that the amount or units goods and services available to the company or firm is not sufficient to fulfill the required consumer or buyer demand for those commodities or services.However,while calculating or computing normal shortage, any unwanted thefts and shrinkage or inadvertent damages of the concerned commodities or goods are not usually considered.
7 0
3 years ago
McCue Inc.'s bonds currently sell for $1,250. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value, but
ratelena [41]

Answer:

YTM = 6.88%.

YTC = 4.26%.

Explanation:

a. Calculation of Yield to Maturity (YTM)

The bond's Yield to Maturity can be calculated using the following RATE function in Excel:

YTM = RATE(nper,pmt,-pv,fv) .............(1)

Where;

YTM = yield to maturity = ?

nper = number of periods = number of years to maturity = 25

pmt = annual coupon payment = $90 = 90

pv = present value = current bond price = $1,250 = 1250

fv = face value or par value of the bond = 1000

Substituting the values into equation (1), we have:

YTM = RATE(25,90,-1250,1000) ............ (2)

Inputting =RATE(25,90,-1250,1000) into excel (Note: as done in the attached excel file), the YTM is obtained as 6.88%.

Therefore, YTM is 6.88%.

b. Calculation of Yield to Call (YTC)

The bond's Yield to call can be calculated using the following RATE function in Excel:

YTC = RATE(nper,pmt,-pv,fv) .....................(3)

Where;

YTM = yield to call = ?

nper = number of periods = number of years to call = 5

pmt = annual coupon payment = $90 = 90

pv = present value = current bond price = $1,250 = 1250

fv = future value of the bond or the amount at which the bond can be called = $1,050 = 1050

Substituting the values into equation (3), we have:

YTM = RATE(5,90,-1250,1050) ............ (4)

Inputting =RATE(5,90,-1250,1050) into excel (Note: as done in the attached excel file), the YTC is obtained as 4.26%.

Therefore, YTC is 4.26%.

Download xlsx
6 0
3 years ago
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