D is the answer!!!!!Hope this helped
Answer:
The lum-sum must equal $5,369,009.59
Explanation:
Giving the following information:
First option:
Annual payment= $420,000
Number of periods= 25 years
Interest rate= 6%
<u>First, we need to calculate the future value of the first option using the following formula:</u>
<u></u>
<u>FV= {A*[(1+i)^n-1]}/i</u>
A= annual deposit
FV= {420,000*[(1.06^25) - 1]} / 0.06
FV= $23,043,095.04
<u>Now, to determine the lump-sum to receive today, we need to determine the present worth of the annuity:</u>
PV= FV / (1 + i)^n
PV= 23,043,095.04 / (1.06^25)
PV= $5,369,009.59
Answer:
Idea generation
Explanation:
Idea generation -
It is the method for searching new methodology or technique to the solution to any previous idea .
It is the main and the most primary focus during the phase of the creative process .
Analyzing the market , interpreting the competitions and asking the customers , all falls in this stage .
Hence , the stage which is asked by the question data is the stage of Idea generation .
Answer:
Ending Cash Balance:
January = $32,450
February = $23,600
Loan Balance End of Month
January = $0
February = $7,080
Explanation:
Note: See the attached excel file for the cash budget for January and February.
In the attached excel file, the following calculation is made:
Additional loan in February = Minimum monthly cash balance - Preliminary cash balance in February = $23,600 - $16,520 = $7,080
From the attached excel file, we have:
Ending Cash Balance:
January = $32,450
February = $23,600
Loan Balance End of Month
January = $0
February = $7,080
Answer:
Ans. The current price of the stock is $135.13
Explanation:
Hi, first, we need to find the price of the stock in year 9, since in year 10 is when the company starts to pay dividends. I know it could sound weird, but due the nature of the following formula, all future cash flows are brought 1 period before the first payment, in our case, if the first dividend is going to be paid in year 10, all the future cash flows of the share (future dividends) are going to be brought to year 9. The formula as follows.
Things should look like this
So the present Value (in year 9) is $228.31, but we need it in the present, therefore, we have to use another formula to bring this value to present value, given the required rate of return.
Where:
Return: The required rate of return (discount rate)
n: number of years from zero.
Everything shold look like this.
So the current price of this stock is $135.13.
Best of luck.
