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
____ [38]
4 years ago
6

Consider a firm with a contract to sell an asset for $154,000 five years from now. The asset costs $90,000 to produce today. Giv

en a relevant discount rate of 13 percent per year, calculate the profit the firm will make on this asset. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Firm's profit(loss) $ At what rate does the firm just break even? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Break-even rate
Business
1 answer:
horsena [70]4 years ago
6 0

Answer:

the firm will have a loss of 6.414,97‬

Break-even rate = 11.34%

Explanation:

We calcualte the present value of a lump sum to know the present sale value:

\frac{Nominal}{(1 + rate)^{time} } = PV  

Nominal:  154,000

time               5 years

rate               0.13

\frac{154000}{(1 + 0.13)^{5} } = PV  

PV   83,585.03

the current sale price        83,585.03

given a cost of               <u>   (90,000)      </u>

the firm will have a loss of 6.414,97‬

To break event the present value should be 90,000:

\frac{154000}{(1 + r)^{5} } = 90,000

\sqrt{5}{\frac{154000}{90,000}} -= (1 + r)  

rate = 0.113411345 = 11.34%

You might be interested in
In order to make sure that workers who leave their jobs are protected in case they need to be replaced the family and medical le
olga_2 [115]
<span>a similar position in the same company with the same pay as their old jobs.</span>
7 0
3 years ago
Read 2 more answers
Storyboards are not detailed enough to show human-computer Interface features.
Firdavs [7]

Answer:

False

Explanation:

5 0
4 years ago
Andy contrasts barcelona restaurants with other establishments where employees are "told how to answer a phone and how to set a
hoa [83]
Barcelona's more relaxed work rules could help it achieve relational coordination - <span>the social processes and the human interactions support the coordinating process and task integration. The relational coordination includes communication and relationships in order to achieve the same goal.</span>
8 0
4 years ago
In private corporations the head of accounting (often called the chief financial officer or controller) spends a great amount of
navik [9.2K]

Answer:

pubg player always pro u guru a lot

5 0
2 years ago
The nation of Tazia exports agricultural products and in turn imports products that it does not produce such as computers and el
torisob [31]

Answer:

mercantilism

Explanation:

It advocates trade policies that protect domestic industries.it helps to reduce trade deficit and create surplus.

6 0
4 years ago
Other questions:
  • An engineering firm is hired by a developer to prepare plans for a shopping mall. Prior to the final bid date, several contracto
    14·1 answer
  • When Coca Cola introduced Coke Zero,this was an example of a _____ strategy.
    13·1 answer
  • Valerie promises Teresa that she will pay Teresa $75 if Teresa will clean Valerie's house by noon on Saturday. If Teresa cleans
    10·1 answer
  • Which of the following would be a closed question?
    15·2 answers
  • It is possible for an economy to increase its production of computers and, at the same time, to increase its production of cars
    7·1 answer
  • A company operating under an EOQ policy enjoys rising annual demand for their products for three consecutive years. During this
    15·1 answer
  • Gaber Land Corp. is evaluating a 4-acre (front 2-acre and back 2-acre) waterfront property for development. Gaber is considering
    15·1 answer
  • A savings account is called a(n) deposit because the bank can require you to make prior notice before withdrawal.
    8·1 answer
  • What buffer system have you formed in the container? Give the formulas of the conjugate acid-base pair that comprise the buffer
    10·1 answer
  • _______ involves developing marketing strategies as though the entire world (or its major regions) were a single entity.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!