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
alekssr [168]
3 years ago
13

Fishermen’s Corp. is considering purchasing a boat. If the boat was purchased, it is expected to receive $20,000 at the end of t

he first year, $40,000 at the end of the second year, and $60,000 at the end of the third year within its business.
What is the boat worth to Fishermen’s Corp today, assume an 8% discount rate.
$120,000$100,440$47,640$98,756
Business
1 answer:
ozzi3 years ago
5 0

Answer:

The boat today is worth 100,440 dollars

Explanation:

We need to solve for the present value of the payment Fishermen's Corp will receive for the boat:

We will apply the formula for lump sum to each \frac{Maturity}{(1 + rate)^{time} } = PV  

cash flow and then add them together

\frac{20,000}{(1 + 0.08)^{1} } = PV  

\frac{40,000}{(1 + 0.08)^{2} } = PV  

\frac{60,000}{(1 + 0.08)^{3} } = PV  

Year Nominal     Present Value

1 20000  18, 518

2 40000 34,293

3 60000 47,630

TOTAL            100,441

You might be interested in
Retained earnings $52,000 Accounts Payable $15,000 Supplies 37,000 Common stock 25,000 Equipment 72,000 Note payable (due in 18
Naddika [18.5K]

Answer:

$22,000

Explanation:

Current liabilities are debts that a company must pay within a twelve month period.

This company's current liabilities are:

  • Accounts payable  $15,000
  • Interest payable  $7,000

Total current liabilities = $15,000 + $7,000 = $22,000

Since the note payable is due in 18 months, it is not considered a current liability.  

8 0
3 years ago
Holly's is currently an all-equity firm that has 12,000 shares of stock outstanding at a market price of $36 a share. The firm h
vagabundo [1.1K]

Answer:

$31,104

Explanation:

EBIT / 12,000

= [EBIT - ($120,000 × .072)] / [12,000 - ($120,000 / $36)]

EBIT = $31,104

Therefore the minimum level of earnings before interest and taxes that the firm is expecting will be $31,104

8 0
4 years ago
Mary's Cookies submitted an ad to the local newspaper with a coupon stating that a dozen cookies cost $2.99. The newspaper inste
ss7ja [257]

Answer:

b. Noise

Explanation:

Although there are other factors that may act as barriers to effective communication. However the most likely factor here is noise.

It is most likely that when Mary was stating that a dozen cookies cost $2.99, the newspaper staff was affected by noise coming from people or the printing press machines and thought he had heard $29.90.

3 0
3 years ago
Jason and his family were invited to dinner by a family friend who had just opened a high-end restaurant. Jason and his family w
mixer [17]

Answer:

C) is the answer in my opinion

7 0
3 years ago
Read 2 more answers
Increasing ________ involves improving an organization's ability to respond to customers, stockholders, governments, employees,
lapo4ka [179]

Answer:

Increasing Returns on Investment helps business increase its capacity to to respond to customers, stockholders, governments, employees, and other stakeholders, which results in better-quality products, higher financial returns, and high quality of work life.

3 0
3 years ago
Other questions:
  • How could the government fight inflation?
    11·1 answer
  • What should every prepared hunter carry for outdoor emergencies? hunting plan fanny pack global positioning system first-aid kit
    5·1 answer
  • In reviewing the firms whose stocks comprise the Dow Jones Industrial Average, we discover: a) There is an even mix between big
    5·1 answer
  • Because scarcity exists, any strategy for allocating scarce resources must address A) for whom to produce, what to produce, and
    11·2 answers
  • In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $350,000 cost of equipment
    12·1 answer
  • With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combinati
    12·1 answer
  • In order to compare and evaluate choices, there must be a set of
    10·1 answer
  • In the product development process, _____ eliminates ideas that are inconsistent with an organization's new-product strategy or
    15·1 answer
  • When preparing a representative sample from a list of 200 customers who complained about errors in their statements, a _____ mig
    10·1 answer
  • Simone's (57) husband, Charles, died in 2017, and she has not remarried. Simone's mother, Lucy, lives in a nursing home. Lucy's
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!