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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.

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Answer:

b. They are not specific

Explanation:

The main problem with service quality standards such as "be nice" or "do what the customers want" is that they are not specific. An individual may think that they are being nice, while another person may take that behavior as being sarcastic or "having an attitude". The same goes for "do what the customer wants" since there are things that an employee is not allowed to do at all.

5 0
3 years ago
The project is expected to generate the following net cash flows:
iVinArrow [24]

Answer:

Correct option is A 5.01%

Explanation:

Let irr be x%

At irr,present value of inflows=present value of outflows.

1,500,000=350,000/1.0x+475,000/1.0x^2+400,000/1.0x^3+475000/1.0x^4

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8 0
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Deltra was willing to purchase a dozen cookies for $60 that Deirdre was willing to sell for anything more than $32. If they agre
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Answer:

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Explanation:

The computation of the total value that would be created in the exchange is shown below;

The Deltra surplus is

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= $60 - $36

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And, the Deirdre surplus is

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Now the total value created is

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5 0
3 years ago
A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following state
iVinArrow [24]

Answer:

a. The bond’s expected capital gains yield is zero.

Explanation:

Since the bonds are issued at par so capital gains yield is zero.

5 0
3 years ago
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kati45 [8]

Answer:

F(t)=f(t)+g(t) represents the TOTAL revenue at time t.

Explanation:

f(t) is the revenue at the time t at the first restaurant.

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If we want to know the TOTAL revenue at the time t, we would sum these quantities:

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7 0
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