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
Artist 52 [7]
4 years ago
12

David has purchased an investment that he expects to produce an annual cash flow of $3,000 for five years. He requires an 8% rat

e of return compounded annually. What is the maximum amount that David can pay and still earn the required rate of return?
Business
1 answer:
Elza [17]4 years ago
6 0

Answer:

Maximum amount to be paid    = $ 11,978.13

Explanation:

<em>This is an example of an annuity . </em><em>An annuity </em><em>is a series of periodic equal cash inflows or cash  outflows occurring for certain number of years.</em>

<em>The maximum amount to be paid would be the present value (PV) of the cash flows discounted at the required rate of return of 8%</em>

This would be be done using the formulae below:

PV = A × 1 - (1+r )^(-n)/r

A- 3000 r - 8%, n - 5

PV = 3000× 1 -(1.08^(-5))/0.08

   = 3000 × 3.9927

   = $ 11,978.13

Maximum amount to be paid    = $ 11,978.13

You might be interested in
If major earthquakes occur along active segments of the san andreas fault about every 200 years, when can another major event be
Aleonysh [2.5K]
It should generate another major event around 2050-2060
8 0
3 years ago
The Second National Bank of Guthrie has opened an office in Chile. This office offers a full line of services and is not a separ
erma4kov [3.2K]

The Second National Bank of Guthrie has opened an office in Chile. This office offers a full line of services and is not a separate legal entity from the Second National Bank of Guthrie. The type of  office the Second National Bank of Guthrie open in Chile is the<u> Branch Office</u>

Explanation:

A branch office is one that  :

  • That offers a full line of services and is not a separate legal entity from the Second National Bank of Guthrie.

A branch office is a location, which is other  than the main office, where a business is conducted. A branch office consist of MANY smaller divisions of different DEPARTMENTS of the company such as human resources, marketing, and finance.

The main Difference between a branch office and a subsidiary is that a branch office   is not a separate legal entity of the parent corporation whereas  a subsidiary is a separate legal entity from the parent, although owned by the parent corporation.

6 0
4 years ago
An example of a start of a start up cost
Leya [2.2K]

Answer:

what

Explanation:

please write the question properly I can't understand it

7 0
3 years ago
Read 2 more answers
_____ 2. The Cost of Goods Manufactured represents: A. the amount of cost charged to jobs during the period. B. the amount of co
andre [41]

Answer:

C. the amount of cost placed into production during the period.

Explanation:

The Cost of Goods Manufactured comprehends all direct materials, direct labor, and factory overhead incurred during the period. Adding the beginning work in process inventory and deducting the ending work in process Inventory.

Formula: COGM

  Direct Materials Used  (Beggining Iinventory + Purchases  - Ending Inventory)

+ Direct Labor Used  

+ Manufacturing Overhead

+ Beginning Work in Process (WIP) Inventory

- Ending Work in Process (WIP) Inventory

7 0
3 years ago
As a human resources manager three selection measures you could use to select your targeted employees in 5star international res
Dovator [93]

Answer:

Selection measures simply refer to the yardstick that HR Managers or businesses use to make hiring decisions.

Three litmus tests which the successful candidate must pass are:

1. Culture Fit: An International Resort business with a 5-star rating must have gotten there with the right values, and culture. When a candidates attitudes, beliefs and values mirror that of the organisation, they are said to be culture fit.

2. Job Fit: It is the job of the Human Resources manager to ensure that the candidate can do the job. He or she can achieve this by using various recruitment, selection and interview. For a 5 Start International Resort, for instance, the employees must be very people-centric, courteous and display high levels of social and emotional intelligence.

3. Background Checks: Having satisfied the first two criteria, the prospective employees must have strong references and background checks which reveal:  

  • consistency in the information provided during the application process; and
  • good standing with their current and or previous employer/colleagues.

Cheers!

5 0
4 years ago
Other questions:
  • The rise of Walmart as one of the world's largest corporations has brought the concept of:
    7·1 answer
  • Rough weather and road conditions present greater problems to ___________ than to the drivers of other vehicles A. SUVs B. motor
    5·2 answers
  • When a company in a declining industry attempts to minimize the amount of assets that are employed to reduce the cost structure
    13·1 answer
  • Theo Chocolate's early strategy to have a competitive advantage over other chocolate manufacturers involved: a.manufacturing mai
    11·1 answer
  • Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $31,000 and variable exp
    7·1 answer
  • A finance company offers a "12% plan". The cost of a one-year loan is 12%, and this cost is added to the loan. This total is the
    5·1 answer
  • Meet /svc-jgyu-fii<br>join​
    14·2 answers
  • The equation of exchange states
    14·2 answers
  • If a company obtained a bank loan, it would record that it received a(n) revenue in exchange for a(n) liability .
    8·1 answer
  • ___________are funds that the bank keeps on hand that are not loaned out or invested in bonds. group of answer choices
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!