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
Crazy boy [7]
3 years ago
14

10. Uneven cash flows A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variabl

e in amount, but the concept of the time value of money will continue to apply. Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years: Annual Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 $100,000 $20,000 $480,000 $450,000 $550,000 The CFO of the company believes that an appropriate annual interest rate on this investment is 9%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar
Business
1 answer:
GaryK [48]3 years ago
5 0

Answer:

$1,155,478

Explanation:

Present value is the sum of discounted cash flows

Present value can be found using a financial calculator

Cash flow in year 1 = $100,000

Cash flow in year 2 =  $20,000

Cash flow in year 3 = $480,000

Cash flow in year 4 = $450,000

Cash flow in year 5 = $550,000

I = 9%

Present value = $1,155,478

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
How to calculate APS?
anyanavicka [17]
Assuming that you mean the APS referring to college/ high school subjects, it goes as follows: 

There are a total of 8 levels on the APS, starting at 0, 2, 3, 4, 5, 6, 7, and 8 

an 8 is a score of between 90% and 100% 
7 is between 80 and 89% 
6 is between 70 and 79% 
5 is between 60 and 69% 
4 is between 50 and 59%
vice versa... 
and a 0 is between 0 and 29%

5 0
3 years ago
The Danser Corporation expects to generate sales equal to $30,000 in January, $33,000 in February, and $38,000 in March. Twenty
olchik [2.2K]

Answer:

101000

Explanation:

4 0
3 years ago
Instead of spending the weekend working on the research paper due at the end of next week sam decided to spend the weekend going
inna [77]

Answer:

the id

Explanation:

In simple words, the id can be understood as the root of all psychological bravery, as per Freud 's philosophy, rendering it the essential component of identity. The ID is motivated by the concept of immediate satisfaction of all wishes, desires and desires. If these needs are not immediately fulfilled, the effect is a state of discomfort or stress.

Thus, from the above we can conclude that the correct answer is the id.

6 0
3 years ago
On January 1, 2020, NoDice Corporation issues $540,000, 5-year, 12% bonds for $529,000. Interest is paid semiannually on January
Svet_ta [14]

Answer:

Dr Interest expense                    $33,500

Cr Discount on bonds payable                 $1,100

Cr Cash                                                            $32,400

Explanation:

Discount on bonds payable=$540,000-$529,000=$11,000

Amortization of discount=discount on bonds issue/period of the bond

period to maturity of the bond is  5 years *2 =10 since the bond pays interest semi-annually

Amortization =$11,000/10=$1,100

Semi-annual interest=$540,000*12%/2=$32,400

the bond semi-annual interest expense=discount amortization+interest payment

the bond semi-annual interest expense=$32,400+$1,100=$33,500

5 0
3 years ago
A company has a "bring your own device" (BYOD) policy for computers; anyone can just go out and buy whatever computer they want.
brilliants [131]

Answer:

<em>I can see there are no choices.</em>

Purchase or Lease Stage

Explanation:

The "Hardware Lifecycle" has several stages or phases. These are:<em> Plan, Purchase or Lease, Deploy & Install, Maintenance, Upgrade, Parts & Repair, Extend, Buyback or Trade In and Dispose or Recyle.</em>

The situation above is part of the<em> "Purchase or Lease Stage."</em> This stage <u>allows the person to buy the computer that they wanted.</u> When it comes to the IT hardware, the person can either "Buy" or "Lease." One may choose the second option if he is not yet ready to buy.

So, this explains the answer.

5 0
3 years ago
Other questions:
  • According to your textbook, a 1998 study of price variation found that what percentage of all the goods and services the US econ
    10·1 answer
  • Financial statements are the major means of communicating accounting information to interested parties. Group of answer choices
    13·1 answer
  • Suppose the demand curve for a product is represented by a typical downward-sloping curve. Now suppose that the demand for this
    5·1 answer
  • A portfolio consists of three index funds: an equity index, a bond index, and an international index. The portfolio manager chan
    5·1 answer
  • Financial statements are reports on the financial performance of organizations. they provide data on
    15·1 answer
  • Gdp most commonly used measurement
    11·1 answer
  • Rossdale Co. stock currently sells for $69.35 per share and has a beta of .90. The market risk premium is 7.30 percent and the r
    7·1 answer
  • WHAT DO YOU MEAN BY MARKET DEVELOPMENT ? EXPLAIN.​
    9·1 answer
  • In preparation for developing its statement of cash flows for the year ended December 31, 2021, Rapid Pac, Inc., collected the f
    14·1 answer
  • Jimmy establishes a Roth IRA at age 47 and contributes a total of $89,600 over 18 years. The account is now worth $112,000. How
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!