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igor_vitrenko [27]
3 years ago
12

Assume that you borrowed money from your grandmother to attend college. Your deal with her is that you will pay her $1,000 per y

ear for the next ten years with the first payment occurring at the end of this year. If your discount rate is 5%, what is the present value of these ten payments?
Business
1 answer:
Fudgin [204]3 years ago
3 0

Answer:

PV= $7,721.73

Explanation:

Giving the following information:

Your deal with her is that you will pay her $1,000 per year for the next ten years with the first payment occurring at the end of this year. If your discount rate is 5%.

To calculate the present value we need to use the following formula:

NPV= ∑[Cf/(1+i)^n]

For example:

Year 4= 1,000/1.05^4 822.70

Year 8= 1,000/1.05^8= 676.84

NPV= $7,721.73

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The stock of ideas in period 10 is 122.

<u>Explanation:</u>

  • A stock thought is the underlying driving force to examine a potential value venture. A stock thought is the initial phase in a procedure of screening, research, and judgment that eventually prompts a choice to put or not put resources into a given stock.  
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3 years ago
Bond Yield and After-Tax Cost of Debt A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 y
Rzqust [24]

Answer:

9.73%

Explanation:

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Given that,  

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PMT = 1,000 × 8% ÷ 2 = $40

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The formula is shown below:  

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So, after solving this,  

1. The pretax cost of debt is 6.95% × 2 = 13.9%

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8 0
3 years ago
In the __________ decision-making method, group members voice their feelings and opinions, but the final decision is made by the
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In this method, the voice of the group members only serves to give different perspectives for the leaders so they could make a decision that they believe will be better for the group</span>
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o test the validity of your selection device for widget makers, you have given it to the present widget makers in your company a
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Answer:

Concurrent validation

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Concurrent validity is a type of proof that can be assembled to justify the use of a test for predicting other outcomes.

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This is calculated by dividing the net profits by net sales.
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