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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

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Healthier, more educated workers tend to be more productive. Greater overall productivity per hour worked is a fundamental compo
Alex73 [517]

Answer:

The correct option is (C)

Explanation:

Brain drain is the term referred to mass movement of competent human capital from developing countries to developed countries for better opportunities.

Following are the reasons for brain drain in developing countries:

  • Lesser employment opportunity
  • Poor economic conditions
  • Illiteracy and poor health facilities
  • Low standard of living

Educated and competent human capital, therefore, move to developed countries for better living conditions.

By improving health and economic conditions, developing countries can combat the problem of brain drain.

8 0
3 years ago
The HVAC engineer for a company that constructed one of the world’s tallest buildings requested that $500,000 be spent on softwa
Dima020 [189]

Answer:

5.16%

Explanation:

PW=0 equation.

0 = -500,000 + 10,000(P/A, i*,10) + 700,000(P/F, i*,10)

Now let use the estimation procedure to determine i* mean while All income will be regarded as a single F in year 10 so that the P/F factor can be used.

Therefore The P/F factor is selected because most of the cash flow ($700,000) which already fits this factor and errors.

P =$500,000, n =10,

F =10(10,000) + 700,000 = $800,000. .

Now we can state that 500,000 =

800,000(P/F,i,10)(P/F,i,10) = 0.625

Roughly estimated i* is between 4% and 5%.

Let use 5% as the first trial because this approximate rate for the P/F factor is lower than the true value when the time value of money is considered.

At i* =5%, the IRR equation is

0 = -500,000 + 10,000(P/A,5%,10) + 700,000(P/F,5%,10)0 < $6946

The result is positive, indicating that the return is more than 5%.

Let Try i*= 6%.

0 = -500,000 + 10,000(P/A,6%,10) + 700,000(P/F,6%,10)0 > $-35,519

Since the interest rate of 6% is too high, linearly interpolate between 5% and 6%

i* = 5.00 + 6946/(6946 + 35519) = 5.16%

Therefore the RATE OF RETURN is 5.16%

8 0
3 years ago
_______ is part of the new social contract for employees.
lana [24]
I think the answer is e
8 0
3 years ago
Diaz Company owns a milling machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare the entry to record
nadya68 [22]

Answer:

1) loss at disposal                   68,000 debit

  accumulated depreciation 182,000 debit

                 milling machine          250,000 credit

2) loss at disposal                   33,000 debit

   cash                                     35,000 debit

  accumulated depreciation 182,000 debit

                 milling machine          250,000 credit

3)

   cash                                     68,000 debit

  accumulated depreciation 182,000 debit

                 milling machine          250,000 credit

4) cash                                     80,000 debit

   accumulated depreciation 182,000 debit

   gain  at disposal                          12,000 credit

                 milling machine          250,000 credit

Explanation:

the book value is the same for all alternatives:

cost - accumualted depreciation

250,000 - 182,000 = 68,000 net book value

1) as there is no salvage value all the book alue is considered loss at disposal

from #2 to #4 we recieve cash for the milling machine to determinate the loss/gain we need to do as follows:

proceeds less book value = result (gain if positive loss if negative)

2)       35,000 - 68,000 = -33,000

3)         68,000 - 68,000 = 0

4)          80,000 - 68,000 = 12,000

8 0
3 years ago
Algonquin Books partnered with Barnes &amp; Noble to offer a unique ________. If you purchase one of 12 paperback books publishe
Llana [10]

Answer:

sales promotion

Explanation:

Based on the information provided in regards to the situation at hand it seems that they offered a unique sales promotion. This term refers to when a company tries to persuade potential customers into buying a certain product by offering discounts on that product or other products when making a purchase. Exactly what Algonquin Books is doing by offering a discount on ebooks if you purchase a paperback book.

8 0
2 years ago
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