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
iris [78.8K]
3 years ago
15

Stuart Weddle's father is 55 years old and wants to set up a cash flow stream that would be forever. He would like to receive $1

5,000 every year, beginning at the end of this year. If he could invest in an account earning 9 percent, how much would he have to invest today to receive his perpetual cash flow?
a. $135,200
b. $166,667
c. $200,000
d. $222,222
Business
2 answers:
kogti [31]3 years ago
5 0

Answer:

B

Explanation:

Perpetuity formula for present for present value to be invested today

Pv = C /R

where c is the amount of continuous cash payment and R is the interest rate

PV = $ 15000 / 0.09 = $ 166666.67 approx $ 166667

snow_lady [41]3 years ago
4 0

Answer:

The correct option is B,$ 166,666.67  approximately $166,667

Explanation:

Present value of perpetual cash flow=yearly payment/rate of interest

yearly payment is $15,000

rate of interest is 9%

Present value of perpetual cash flow=$15,000/9%

                                                             =$ 166,666.67  

In order to receive $15,000 per year perpetually,Stuart Weddle would have to invest $ 166,666.67   today at the rate of return of 9%

Option D, would be correct if the annual payment is $20,000($20000/9%=$ 222,222.22)

You might be interested in
A food service operation that is concerned with sourcing asks suppliers detailed questions about _____ the food is produced. A.
Alja [10]
Your answer would be B. where and how
5 0
3 years ago
Read 2 more answers
Part of implementing Quality Windows Limited new enterprise resource planning (ERP) software is ensuring all workstations and se
Setler [38]

Answer:

A)i) web browser software :

  ii) web server software :

B) i) Web browser software: Auto-download updates  and Tracking functionality

ii)  web server software : unauthorized access and unsecure connection from web browse

C) i) Legal and regulatory controls

  ii) Access controls

D) i)  Validation process -

ii) Define Requirements-

iii) Develop:

iv)Testing: Test what has been developed

v) Review/Management :

Explanation:

A ) Functions that the software application should provide

i) web browser software : This functions requires the software to make requests from the relevant web pages and sending them to the web server software application and serve it up to customers

ii) web server software : This function means that the software should be  able to store, process and deliver web pages to web browser applications’.

B) Functions that this software application should prohibit

i) Web browser software: Auto-download updates  and Tracking functionality

ii)  web server software : unauthorized access and unsecure connection from web browser

C) Controls that are necessary to ensure application software operates as intended

i) Legal and regulatory controls such as privacy laws, and copyright policies  will help the software operate smoothly

ii) Access controls such as  user authentication when a user is trying to login is very vital for the security of the user

D Steps necessary to validate that the software operates as intended

i)  Validation process - The validation process is the first step which is intended to  implement plans that identifies who has access to the software, what is been done on the software, and where the software is going to be accessed from.

ii) Define Requirements- defining the functions of the software and what the system can't do as well

iii) Develop: after Defining the requirements the next step is to develop the software in line with the defined requirements

iv)Testing: Test what has been developed

v) Review/Management : After successful testing of the product/software a review of the whole process before commercializing it is required as well

4 0
3 years ago
Assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed orang
ruslelena [56]

Answer:

If negative externalities pop up in a market, the equilibrium is higher than the efficient output.

Thus when it comes to the government rectification regarding the side effects of that commercial , activity, if the amount of bags is (1) then the new equilibrium would be: <em>p*= $17</em>

8 0
3 years ago
Maria has started a lawn care service about a year ago. She did
Yuliya22 [10]
I believe it’s growth
6 0
3 years ago
Read 2 more answers
Im asian lololololololol
qaws [65]

Answer:

nice nice nice, nice pfp lol-

8 0
3 years ago
Read 2 more answers
Other questions:
  • Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipm
    7·1 answer
  • Christopher likes cupcakes (C) and muffins (M). His preferences can be represented by the utility function U(C, M) = C0.5M0.5. H
    7·1 answer
  • The lower the times interest earned ratio the more likely
    11·1 answer
  • Which of the following is NOT one of Porter's five primary forces?
    8·1 answer
  • Insurance can help you:
    6·1 answer
  • True or False. Enterprise Resource Planning software has proven popular in part because the standardization these products impos
    11·1 answer
  • One thing that policy makers often overlook is:
    10·1 answer
  • Albert, a developmental psychologist, conducts research on children's emotional reactions to studying math in school. Albert is
    7·1 answer
  • Which one of the following statements is correct? Firms should accept low-risk projects prior to funding high-risk projects. Com
    12·1 answer
  • Because private business is involved in certain aspects of our economy, it is a modified version of free enterprise.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!