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Usimov [2.4K]
3 years ago
8

Consider the following uneven cash flow stream: Year Cash Flow 0 $0 1 $250 2 $400 3 $500 4 $600 5 $600 What is the present (Year

0) value if the opportunity cost (discount) rate is 10 percent? A Spreadsheet solution: $1,815.87 B Spreadsheet solution: $1,715.87 C Spreadsheet solution: $1,915.87 D Spreadsheet solution: $1,615.87
Business
1 answer:
viva [34]3 years ago
7 0

Answer:

The correct answer is: $1715,87

Explanation:

To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

The formula is:

             n

<h3>NPV= ∑ [Rt/(1+i)^t] - I0</h3>

            t-1

where:

R t​     =Net cash inflow-outflows during a single period t

i=Discount rate of return that could be earned in alternative investments

t=Number of timer periods

<u>In this exercise:</u>

NPV= 0+ 250/1,10^1 + 400/1,10^2 + 500/1,10^3 + 600/1,10^4 + 600/1,10^5

<u>NPV= $1715,87</u>

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50%

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Does the film titanic improve the viewer's understanding of the historical events?
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On one hand it does, but on the other, it doesn't.
If you look at the movie from a historical perspective, we can see what people might have behaved like in the actual event when Titanic sank. The movie portrays their thoughts, emotions, and behaviors during that horrible night, so if you think about it that way, I guess we can understand the event more. On the other hand though, the movie included a love story which is not really relevant to what actually happened in history, so it doesn't really help the viewer think about history much. 
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thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as
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E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

Explanation:

Options are <em>"A. cultural, lifestyle, and demographic changes, B. the birth of new industries, new knowledge, and disruptive technologies, C. weather, climate change, and water shortages, D. interest rates, exchange rates, unemployment rates, inflation rates, and economic growth, E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently." </em>

Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as <u><em>how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.</em></u>

The strategy decision making about the industry and competitive conditions involve evaluating the prices, buyer sensitivity to the prices, serviceability & frequency.

7 0
3 years ago
Indicate whether the following events might cause stocks in general to change price, and whether they might cause Big Widget Cor
-BARSIC- [3]

Answer:

Check the explanation below

Explanation:

Inflation is systematic (Market) risk, it impacts all stocks

Results of company is unsystematic (Specific) risk, as they are as expected stock price wont have much impact

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3 years ago
Peter's Audio has a yield to maturity on its debt of 7.8 percent, a cost of equity of 12.4 percent, and a cost of preferred stoc
nadezda [96]

Answer:

WACC = 9.22%

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25,000 preferred stocks x $45 = $1,125,00

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preferred stocks = $1,125,00 / $4,905 = 22.94%

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8 0
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