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WITCHER [35]
3 years ago
13

You are due to receive a lump-sum payment of $1,350 in four years and an additional lump-sum payment of $1,450 in five years. As

suming a discount rate of 2.0 percent interest, what would be the value of the payments today
Business
1 answer:
FrozenT [24]3 years ago
8 0

Answer:

2560.50

Explanation:

For bond valuation, the investor would be willing to pay, at the most, the present value of the future income stream discounted at 2%. Thus, the value of the bond can be determined as follows:

Years  1 2 3 4 5 Total  

Principal              1,350 1,450 2,800  

Interest  0    0      0      0       0        0  

Total inflow 0 0  1,350 1,450 2,800  

[email protected]% 0 0 0  1,247 1,313 2,561

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Dvinal [7]

Answer:

TRUE

Explanation:

When supply is perfectly inelastic, the supply curve is vertical as shown in the attached plot. Thus, the tax that shifts the supply curve upward would have no effect on the equilibrium quantity or price paid by consumers. Since equilibrium quantity or price paid by consumer don't change there's no burden on them. However, no  team's owners would receive a lower after tax price and thus bearing the entire tax burden.

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3 years ago
Assume there are six companies in a certain industry. Four companies have $10 sales apiece, while two companies have $5 sales ea
antoniya [11.8K]

Answer:

An industry consists of six firms with annual sales of $300, $500, $400, $700, $600, and $600, respectively. a. What is the industry's four firm concentration ratio? b. What is the industry's Herfindahl-Hirschman index? c. Is this industry highly concentrated? Explain.

Explanation:

5 0
2 years ago
Assume a project has normal cash flows. according to the accept/reject rules, the project should be accepted if the?
True [87]

Assume a project has normal cash flows. According to the accept/reject rules, the project should be accepted if the: IRR exceeds the required return.

Internal rate of return (IRR) is a metric used in financial analysis to estimate the potential profitability of an investment. The IRR is the discount rate that drives the net present value (NPV) of all cash flows to zero in discounted cash flow analysts. This suggests that an expected angel investment IRR of at least 22% is considered a good IRR. The higher

the project's projected IRR and the higher the amount above its cost of capital, the more net cash the project brings to the firm. So in this case the project appears to be profitable and management should go ahead with it.

Learn more about IRR  here

brainly.com/question/15933534

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6 0
2 years ago
Pharoah Company uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are available at Dece
ANTONII [103]

Answer:

$6,689

Explanation:

As we know that the inventory should be recorded at cost or net realizable value which ever is lower

Particulars      Item Units      Unit Cost         Net Realizable Value    LCNRV

Minolta              7                    $175                $157                              $157

Canon               11                    142                   176                               $142

Vivitar               14                    130                   111                                $111

Kodak               17                     120                  132                              $120

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= $6,689

4 0
3 years ago
_ is the process managers use to continually monitor all phases of the production process to ensure that quality is being built
Free_Kalibri [48]
Statistical Quality Control<span> is the process managers use to continually monitor all phases of the production process to ensure that quality is being built into the product from the beginning and that quality is not being inspected into the product at the end of the production process.

All products go through a quality control procedure to make sure their products meet industry and company standards. Organizations do this to ensure they are putting out the smallest amount of defects as possible when creating items to sell to wholesalers or consumers. </span>
7 0
3 years ago
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