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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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Mark, a newspaper editor, walks into the newsroom and announces to a group of five reporters: "I'll pay a $2,000 bonus to the fi
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3 years ago
The fact that a hot dog cost five times more at disneyland than at sam's club is an example of ________.
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captive product pricing, Disney offers lower prices to enter the park but higher prices once in the park because the audience is captive

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3 years ago
Read 2 more answers
To estimate the company's WACC, Marshall Inc. recently hired you as a consultant. You have obtained the following information. (
frez [133]

Answer:

The correct answer is: 8.72%

Explanation:

Cost of debt K d = I (1 – t) + (-pi)/n

(SV + RV)/2

= 80(1 – 0.40) + (-75)/25

(1,000 + 1,075)/2

= 0.043 or 4.3%

Cost of equity K e = R f + b (R m – R f)

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R f = risk free rate = 4.5%

B = beta = 1.2

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3 0
4 years ago
_____ is added to refined grain products as part of the enrichment process.
zubka84 [21]
The correct answer that would best complete the given statement above would be IRON. Iron <span>is added to refined grain products as part of the enrichment process. Other options include magnesium, calcium and iodine. Enrichment process is when nutrients are being added to a food product. Hope this answer helps.</span>
6 0
4 years ago
Whispering Company owns a 7,200-acre tract of timber purchased in 2006 at a cost of $1,352 per acre. At the time of purchase, th
agasfer [191]

Answer:

Explanation:

Determination of cost of timber

Cost of timber per acre

(1,352 - 312)  = 1040

Cost per board feet of timber

   <u>1040 </u>

   8320      

Cost of timber sold related to depletion in 2020

884,000 board feet ×   <u>1040 </u>

                                      8320  

     = $110,500

7 0
4 years ago
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