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
KiRa [710]
3 years ago
6

Starlite Industries will need $2.2 million 4.5 years from now to replace some equipment. Currently, the firm has some extra cash

and would like to establish a savings account for this purpose. The account pays 3.6 percent interest, compounded annually. How much money must the company deposit today to fully fund the equipment purchase?
a. $1,679,947.20
b. $1,412,308.18
c. $1,350,868.47
d. $1,876,306.49
e. $1,798,407.21
Business
1 answer:
kotegsom [21]3 years ago
6 0

Answer:

d. $1,876,306.49

Explanation:

As for the provided information,

Total funds needed at end of 4.5 years = $2.2 million

For this current savings are to be invested on a compound interest, where the rate of interest = 3.6%

Compounding period = Annually.

Therefore, future value factor of $1 after 4.5 years @ 3.6% = 1.1726997

The value of $2.2 million as on date = \frac{2.2\ million}{1.1726997}

= $1,876,306.49

Therefore, the correct answer is

Option d.

You might be interested in
A cover letter is ______
lara31 [8.8K]
D because in the cover letter its more like a interview where you talk about yourself rather than only talking about your strengths and weaknesses and what your applying for
6 0
3 years ago
Read 2 more answers
Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $22.00, $15.00, $6.00 and $3.20.
Umnica [9.8K]

Answer:

P0 = $45.299899  rounded off to $45.30

Explanation:

The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +  [(Dn * (1+g) / (r - g)) / (1+r)^n]

Where,

  • D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on
  • g is the constant growth rate in dividends
  • r is the discount rate or required rate of return

P0 = 22 / (1+0.19)  +  15 / (1+0.19)^2  +  6 / (1+0.19)^3  + 3.2 / (1+0.19)^4  +  

[(3.2 * (1+0.04) / (0.19 - 0.04)) / (1+0.19)^4]

P0 = $45.299899  rounded off to $45.30

Read more on Brainly.com - brainly.com/question/22666091#readmore

7 0
3 years ago
A hospital revenue bond issue is being underwritten on a negotiated basis. The offering consists of $20,000,000 par value of ter
ddd [48]

Answer:

The selling group member earns $12 on that sale

Explanation:

When selling a bond directly to the public, a group member earns a total takedown which is the total of the additional takedown plus the selling concession.

$12 + $15

= $27

Now if a selling group member finds a customer, then $15 which is the selling concession is given up leaving the member to earn $12 (the additional takedown) on that sale.

6 0
3 years ago
¿Que es un mapa estratégico?
Anna007 [38]

Answer: Sí

Explanation: Sí

5 0
3 years ago
Consider the demand equation q=20,000 p^(-1.4). if the cost of production is constant at $0.50 per unit then what is the optimal
skelet666 [1.2K]

Consider the demand equation q=20,000 p^(-1.4). if the cost of production is constant at $0.50 per unit $1.75 is the optimal price to maximize profit.

The income maximization system depends on income general sales overall fee. consequently, a firm maximizes earnings while MR = MC, that is the primary order, and the second order depends on the first order. This idea differs from wealth maximization in phrases of length for income earnings and the company's goals.

Calculation,

The demand equation q=20,000 p^(-1.4)

The production constant is $0.50

maximum profit= $1.75

The choicest charge is that charge point at which the total earnings of the seller are maximized. while the rate is just too low the vendor is shifting a big quantity of devices but income is the best possible combination of income. Examples of income maximizations like this encompass: discovering less expensive raw materials than those presently used. discover a provider that gives better charges for inventory purchases. locate product resources with decreased delivery prices. lessen labor expenses.

Learn more about The optimal price here:-brainly.com/question/28332226

#SPJ4

4 0
1 year ago
Other questions:
  • ​Connecticut, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the compar
    13·1 answer
  • Smith & Sons, Inc., is authorized to issue one million shares of $1 par value common stock. The company actually sells 500,0
    13·1 answer
  • Bobaflex Corporation has ending inventory of $707,373 and cost of goods sold for the year just ended was $8,513,213. What is the
    10·1 answer
  • Which of the following statements about renting and owning is correct
    9·2 answers
  • A company estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter ov
    13·1 answer
  • Find the after-tax return to a corporation that buys a share of preferred stock at $40, sells it at year-end at $40, and receive
    8·1 answer
  • Deep River, a manufacturer of electronic cameras, has excess capacity. The company's New Hampshire plant has the following per-u
    5·1 answer
  • On July 31, 2017, Crane Company had a cash balance per books of $6,355.00. The statement from Dakota State Bank on that date sho
    5·1 answer
  • A small foundry agrees to pay $420,000 three years from now to a supplier for a given amount of coking coal. The foundry plans t
    14·1 answer
  • The straight-line depreciation method and the double-declining-balance depreciation method: A. Produce the same depreciation exp
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!