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
Tcecarenko [31]
4 years ago
14

A three-year annuity-immediate will be issued a year from now with annual payments of 5,000. Using the forward rates, calculate

the present value of this annuity a year from now.
Business
1 answer:
vladimir1956 [14]4 years ago
6 0

Answer:

13,152.5

Explanation:

Given the the above parameters as mentioned in the question

To calculate the PV (Present Value)

We have PV = 5000 * 1.05 * [ 1/(1.0575)² + 1/(0.625)³ + 1/(1.065)⁴]

PV = 5000 * 1.05 * (0.8942094350 + 0.8337064929 + 0.7773230908) =

=> PV = 5000 * 1.05 * 2.5052390187

= 13,152.50

Therefore, in this case, using the forward rates, the present value of this annuity a year from now is 13,152.50

You might be interested in
Maurice, the marketing head of a nonprofit organization, always begins his presentation on a project by sharing a lesser-known f
ololo11 [35]

Answer:

Maurice, the marketing head of a nonprofit organization, always begins his presentation on a project by sharing a lesser-known fact about the issue that the project focuses on. This helps the members of the audience get a better picture of the importance of the issue and makes them more attentive. Given this information, it can be assumed that Maurice uses persuasive means to open his presentations.

Explanation:

From the above analogy, it is a known fact that Maurice used persuasive presentation by presenting facts to support his claims in order to allow his audience to agree with his presentation.

4 0
3 years ago
On March 1, Squire Company purchased a new stamping machine with a list price of $24,000. The company paid cash for the machine;
Nikitich [7]

Answer:

C. $25,960

Explanation:

Cost of asset includes all the cost involved to acquire and install the asset. In simple term all the costs that are necessary to make the asset usable are capitalised and added to the cost of the asset.

In this question stamping machine has following cost which need to be capitalised.

Discounted Price = $24,000 x ( 100% - 3% ) = $24,000 x 97% = $23,280

Transportation cost = $550

Sales Tax = $1,680

Installation cost = $450

Total cost to be capitalized = $23,280 + $550 + $1,680 + $450 = $25,960

Routine Maintenance cost is the routine / period cost which incur every month, It is not necessary to make the asset usable and it is incurred after the asset is used.

5 0
3 years ago
Read 2 more answers
Parton Co. is a car manufacturing company that wants to hire a new product manager. Senior management decides to have the depart
gayaneshka [121]

Answer:

panel interview

Explanation:

Based on the information provided within the question it can be said that this is an example of a panel interview. This is a type of interview in which a group of individuals all ask questions to the potential candidate. This group of individuals then analyzes the question and make a group decision as to whether or not they will hire the individual for the job.

7 0
3 years ago
Peterson Manufacturing and the local steelworkers' union are having a negotiation breakdown. Peterson's management is keeping em
erica [24]

Answer:

B) lockout

Explanation:

Since in the question it is mentioned the manufacturing Peterson and the local steelworkers contain the negotiation breakdown also is keep out of the work place and runs the operations with non permanenet replacements

So here to overcome this breakdown, the lockout strategy is used

And all other given options are wrong.

7 0
3 years ago
A profit-maximizing monopolist has the cost schedule c(y) = 20y. The demand for her product is given by y = 600/p^4, where p is
marin [14]

Answer:

Decrease her price by $20

Explanation:

Please see attachment for working notes and explanation

8 0
3 years ago
Other questions:
  • BarkBark Inc. and Happy Toys Ltd. are considering a merger and are worried that their two organizational cultures will clash. Th
    11·1 answer
  • Goals of the Firm. Fill in the blanks in the following passage by choosing the most appropriate term from the following list (so
    9·1 answer
  • You are offered a chance to buy an asset for $4,500 that is expected to produce cash flows of $750 at the end of year 1, $1,000
    8·1 answer
  • How might an economist gather empirical data to test the proposed relationship between money and the price level?
    7·2 answers
  • Capital Radio PLC, the United Kingdom's biggest commercial radio firm announced in 2002 that it would cooperate with Walt Disney
    15·1 answer
  • The Lancaster State Bank is thinking about purchasing a corporate bond that pays a coupon of 8.5%. The bank has a marginal tax r
    7·2 answers
  • How have the general ideologies of each major party change over time?
    12·1 answer
  • Why is it so difficult to track the crime rate over time?
    14·1 answer
  • If the supply of dollars in the market for foreign-currency exchange shifts left, then the a. rises and the quantity of dollars
    5·1 answer
  • The modern economy has produced jobs that no longer rely on brute strength, but on social intelligence, open communication, and
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!