Answer:
The monetary value is $24,201.23
Explanation:
Giving the following information:
Cash flows:
Year 1= $6,800
Year 2= 6,800
Year 3= 6,800
Year 4= $15,000.
The discount rate is 15 percent.
We need to discount each cash flow to the present value:
PV= FV/(1+i)^n
Year 1= 6,800/1.15= 5,913.04
Year 2= 6,800/1.15^2= 5,141.78
Year 3= 6,800/1.15^3= 4,471.11
Year 4= 15,000/ 1.15^4= 8,576.30
Total= $24,201.23
Answer:
3.05%
Explanation:
According to Pure Expectation Theory, the future short term interest rates are actually the forward rates.
Mathematically,
(1 + r2,0)^2 = (1 + r1,0)^1 * (1 + r1,1)^1
Here,
r2,0 is the rate of interest for 2 year treasury security from today
r1,0 is the rate of the interest for 1 year treasury security from today
r1,1 is the rate of the interest for 2 year treasury security from Year 1
By Putting Values, we have:
(1 + r2,0)^2 = (1 + 0.04)^1 * (1 + 0.021)^1
(1 + r2,0)^2 = 1.06184
By taking square-root on both sides, we have:
(1 + r2,0) = 1.0305
r2,0 = 3.05%
I’m sure that it’s true you nerd
Answer:
B. The lessor does not have the right to stop delivery in transit due to the lessee's breach of the lease agreement; instead, the lessor must deliver the goods to the lessee in spite of the breach, and then sue the lessee for damages.
Explanation:
During the transit of goods, if the lessor learns of a breach of the lease agreement, he has every right to stop the delivery of the goods in transit by notifying the goods carrier or bailee. Since the carrier of the goods reports directly to the lessor, once he receives instructions from the lessor to stop delivery of goods, and he still has sufficient time, the delivery should be stopped.
Once the goods are reclaimed, the lessor can then decide to sue to recover damages. He can also, decide to cancel the contract at that point
