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
Mariana [72]
3 years ago
12

An annuity will pay $1000 per year for 10 years, starting five years after today. What is the present value (PV) of this annuity

today, given that the interest rate is 7%?
Business
1 answer:
vodka [1.7K]3 years ago
7 0

Answer:

$5,007.72

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator.

Cash flow each year from year one to five = 0

Cash flow each year from year six to fifteen = $1000

I = 7%

Present value = $5,007.72

To find the PV using a financial calacutor:

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

I hope my answer helps you

You might be interested in
Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for e
matrenka [14]

Answer:

$820

Explanation:

Firstly, we need to find the overhead cost.

Overhead cost = 15 hours × $18

= $270 per hour

Labor cost = $15 hours × $12

= $180 per hour

Direct material = $370.

Therefore,

Total cost = $370 + $270 + $180

= $820

Total cost that should be assigned to the job is $820

8 0
3 years ago
Buford Bus Manufacturing installs a new assembly line. As a result, the output produced per worker increases. The marginal cost
aivan3 [116]

Answer:

A. will increase (the MC curve will shift upward )

Explanation:

The marginal cost of production is the change in total production cost that comes from making or producing one additional unit of a commodity, hence Buford Bus Manufacturing installing a new assembly line and worker's output increasing per worker would increase the additional cost of production or marginal cost incurred by the company.

6 0
3 years ago
An asset costs $174000 and is expected to have a $58000 salvage value at the end of its 10-year life. Straight-line depreciation
makvit [3.9K]

The cash payback period for the asset is 3 years.

Payback period = Cost of Investment ÷ annual cash inflow

=174,000 / 58,000

= 3 years

What is cost of investment in accounting?

Certain investments are recorded using the cost method of accounting in a company's financial statements. When an investor holds an investment that it has little or no control over—typically described as owning less than 20% of the company—they employ this strategy.

What is yearly cash flow?

Cash circulation in and out of a business over a fiscal year is referred to as "annual cash flow" in finance.

How do you calculate annual cash flow?

To calculate your yearly cash flow, subtract your total cash inflows from your total cash outflows. If the result is positive, it indicates positive cash flow; if it is negative, it indicates negative cash flow. Using the same example, take $175,000 out and subtract $139,000 to generate $36,000 in positive annual cash flow.

Learn more about cost of investment: brainly.com/question/16944523

#SPJ4

5 0
1 year ago
Nathan is a customer service agent for a small nutrition company. He was disabled in a car accident and relies on his wheelchair
Ann [662]

Answer:

EEOC - Equal Employment Opportunity Commission

Explanation:

EEOC protects employees with disabilities, Nathan would qualify for such protection due to the physical strain.

5 0
3 years ago
Morgan leasing Company signs an agreement on January 1, 2017, to lease equipment to Cole Company. The following information rela
Evgesh-ka [11]
Mendjdjddjdjdkdjdjdkdjd
8 0
3 years ago
Other questions:
  • Fletcher is an executive at Fresnas Inc., a clothing manufacturer. He communicates with clients to analyze what features consume
    9·1 answer
  • Do I have to go to college to work at U.S printing and engraving
    5·2 answers
  • The country of merilya exported goods and services worth $1.2 million and imported goods and services worth $2.7 million. the ne
    7·1 answer
  • Therefore Sweden is not part of the euro?
    13·1 answer
  • Unlike goal-setting theory, management by objectives (MBO) strongly advocates for _________. independent tasks specific performa
    15·1 answer
  • Economics is the study of how people try to satisfy unlimited wants and needs with limited resources.
    7·2 answers
  • Advice Florence and her team on how they can convince the staff using john kotter's theory to lead change
    9·1 answer
  • An owner of a corporation is known as a(n):Group of answer choicesLimited partner.Stockholder.General partner.Director.
    15·1 answer
  • "The Four Ps and Three Cs form the basis of a simple model for TQM to take organizations successfully into the twenty-first cent
    12·1 answer
  • g at the close of its first year of operations, december 31, 2020, delaware company reported net realizable value of accounts re
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!