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
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

You might be interested in
The owner of Cafe Bakka is considering investing in a new point-of-sale system. He spent $10,000 on his current point-of-sale sy
Westkost [7]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

6 0
3 years ago
Alex Timbers, a wood supplier, receives an order of 10 wooden logs from a furniture manufacturing company. The client brief ment
tester [92]

Answer:

<em>Inaccurate</em>

Explanation:

<em>The information that was given to Alex Timbers who was a wood supplier that furniture manufacturing company requires teak wood, this information was </em><u><em>inaccurate</em></u><em>.</em>

Because we can see in the scenario which is mentioned in the question that the quality specialist of that furniture manufacturer company observes that the logs that was sent by Alex Timbers are very big, as the company itself ordered for teak wood, and we know that teak wood is very big. So, we can say that information provided by the company was inaccurate.

4 0
3 years ago
Sheela Dairy Corporation buys unprocessed cows' milk from local farmers. At the dairy, this unprocessed milk is broken down into
Dafna11 [192]

Answer:

The answer is D) None of these statement is relevant in the decision to further process the cream into butter.

Explanation:

option A)  the amount paid to the farmers to purchase the unprocessed milk: this information is not relevant to further develop the cream and low fat milk to butter. It was already considered before this stage of production.

Option B) the cost of breaking down the unprocessed milk into cream and low-fat milk: this cost was already accounted for since the processing into cream and low fat milk is completed.

Option C) the portion of corporate fixed expenses that are currently being allocated to cream: This information is not going to help in the decision making for further processing.

8 0
3 years ago
Senator dogood is pushing for the construction of a new military base in his state even though, from the standpoint of national
Katarina [22]
This is a classic example of what is termed "Pork"  or "Pork barrel politics".  Pork is when a legislator tries to divert federal funds to projects in their districts or State.  These funds provide jobs and income for his constituents who the will repay him with votes in the next election.
5 0
3 years ago
Several buyers are competing for the last available home in a desirable new subdivision. One buyer calls the owner-developer dir
DENIUS [597]

this seems interesting i think

5 0
3 years ago
Other questions:
  • PDX Corp. acquired 100% of the outstanding common stock of Sea Corp. in a business combination accounted for using the acquisiti
    10·1 answer
  • On january​ 1, 2017, finch company issued​ $89,000 of​ five-year, 8% bonds when the market interest rate was​ 12%. the issue pri
    11·1 answer
  • U.S.-based royal corporation is hesitant about entering into a licensing agreement with hexagon, inc., a company from the monasl
    15·1 answer
  • Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.30 Direct labor
    11·1 answer
  • Northern Trail Outfitters has released a Customer Service Community for its users and trekking equipment. Users can ask and answ
    11·1 answer
  • Which of the following is an example of a strategic action?
    12·1 answer
  • Who ultimately pays for tariffs, consumers or producers?
    6·2 answers
  • Rachel's Designs has 2,000 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining
    10·1 answer
  • What are the costs and sources of inefficiency in a barter B apply.) A. Productivity is increased by specialization. B. Each goo
    5·1 answer
  • Why do you think that luxury brands are particularly interested in investing in social media influencers?.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!