1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Black_prince [1.1K]
3 years ago
9

Beene Distributing is considering a project that will return $150,000 annually at the end of each year for the next six years. I

f Beene demands an annual return of 7% and pays for the project immediately, how much is it willing to pay for the project?
Business
1 answer:
mr_godi [17]3 years ago
8 0

Answer:

$714,980.95

Explanation:

The most it would be willing to pay is the present value of the cash flows

present value is the sum of discounted cash flows from a project

present value can be determined with a financial calculator

Cash flow each year from year 1 to 6 = $150,000

I = 7%

Present value = $714,980.95

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

You might be interested in
You have two options to repay a loan. You can repay $6,000 now and $5,940 in one year; or you can repay $12,000 in 6 months. Fin
Brums [2.3K]

Answer:

We will consider positive interest rate which is i=0.21 or i=21%

Explanation:

The formula for Future value is:

FV=PV(1+i)^n

The present value will become:

PV=FV(1+i)^{-n}

where:

n is the number of years

Since the condition is same present value,so the given data form the equation:

6000+5940(1+i)^{-1}=12000(1+i)^{-1/2}

Divide above equation by (1+i)^{-1}

6000(1+i)+5940=12000(1+i)^{1/2}

Let z=(1+i)^{1/2}\\. Above equation will become:

6000z^2+5940=12000z

Rearranging above equation:

5940-12000z+6000z^2=0

Solving the quadratic equation:

z=1.1,    z=0.9

Let z=(1+i)^{1/2}\\ will become:

z=(1+i)^{1/2}\\\\z^2=1+i

i=z^2-1

For z=1.1

i=(1.1)^2-1\\i=0.21

For z=0.9

i=(0.9)^2-1\\i=-0.19

we will consider positive interest rate which is i=0.21 or i=21%

7 0
3 years ago
According to the law of supply, when the price of a good increase the quantity supplied is __________.
xeze [42]

Ans d

Explanation:

i believe

4 0
3 years ago
An international children’s charity collects donations, which are used to buy clothing and toys for children in need. The charit
MatroZZZ [7]

Answer:

Required 1

<u>General Journal</u>

Cash $8,500 (debit)

Donations Revenue $8,500 (credit)

<em>Cash and Checks received as Donation Revenue</em>

<em />

Wages Expenses $3,000 (debit)

Cash $3,000 (credit)

<em>Wages to employee paid</em>

<em />

Note Payable $3,420 (debit)

Cash $3,420 (credit)

<em>Repayment of Short Term Loan</em>

<em />

Supplies $4,920 (debit)

Cash $2,080 (credit)

Note Payable $2,840 (credit)

<em>Purchase of Toys on cash and on credit</em>

<em />

Supplies $4,020 (debit)

Donations Revenue $4,020 (credit)

<em>Donations revenue received in form of Toy Supplies</em>

Required 2

Net Income is $9,520

Explanation:

<u>Calculation of Charity’s preliminary net income.</u>

Donations Revenue ($8,500 + $4,020)  $12,520

Less Expenses :

Wages                                                       ($3,000)

Net Income/ (Loss)                                    $9,520

7 0
3 years ago
Macroeconomics deals with the short-run variations in economic growth that make up the business.
madam [21]

Macroeconomics deals with the short-run variations in economic growth that make up the business cycle

This is further explained below.

<h3>What is Macroeconomics?</h3>

Generally,  The study of an economy's performance overall, structure, behavior, and judgment is the domain of macroeconomics, a subfield within the discipline of economics.

The increase of economic activity is followed by periods of contraction, which together make up a business cycle.

These shifts have repercussions not just for the well-being of the general population but also for the operations of private organizations.

Business cycles are a sort of variation that may be observed in the overall economic activity of a country.

A business cycle is a cycle that consists of expansions happening at about the same time in numerous economic activities, followed by contractions that are equally widespread in nature.

In conclusion, The business cycle is the primary focus of macroeconomics, which analyzes the short-term fluctuations in economic growth that occur throughout it.

Read more about  Macroeconomics

brainly.com/question/28424197

#SPJ1

5 0
1 year ago
On April 1, Griffith Publishing Company received $33,480 from Santa Fe, Inc. for 36-month subscriptions to several different mag
WARRIOR [948]

Answer:

Debit Unearned Fees, $8,370

Credit Fees Earned, $8,370

Explanation:

Based on the information given we were told that the Company received the amount of $33,480 from Santa Fe for 36 month on April 1 in which we are to assumed that the adjustments will be made at the year end this means that the adjusting entry will be to:

Debit Unearned Fees, $8,370

Credit Fees Earned, $8,370

Calculated as :

Amount received $33,480/36 months ×9 months

=$8,370

Note that from 1st April to 31st December will give us 9 months.

7 0
3 years ago
Other questions:
  • One of the advantages of having a savings account is that the money can be used for emergency purposes, whereas money in bonds,
    12·2 answers
  • ​First-line managers are typically those who​ ________.
    10·1 answer
  • Jimland's government has severe restrictions toward the entry of foreign companies into the country. A foreign company intereste
    5·1 answer
  • Who is responsible for determining how tasks will be done in a weak matrix project management structure?
    10·1 answer
  • If the expected proportionate change in the nominal exchange rate, measured in units of domestic currency per unit of foreign cu
    12·1 answer
  • 3. What do you think Firestone did wrong in their approach in South America and the United States? Why do you think the company
    15·1 answer
  • Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the​ b
    11·1 answer
  • Slotkin Products purchased a machine for $65,000 on July 1, 2017. The company intends to depreciate it over 8 years using the do
    12·1 answer
  • Anyone want to talk on for...tnite or g.m..<br> eet?????
    15·1 answer
  • How much money did daniel radcliffe make from harry potter
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!