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Brums [2.3K]
3 years ago
12

Capstone Investments is considering a project that will produce cash inflows of $11,000 at the end of Year 1, $24,000 in Year 2,

and $36,000 in Year 3. What is the present value of these cash inflows at a discount rate of 12 percent?
a.$41,997.60

b.$46,564.28

c.$54,578.17

d.$54,868.15

e.$63,494.54
Business
1 answer:
kherson [118]3 years ago
3 0

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Cash inflows:

Year 1= $11,000

Year 2= $24,000

Year 3= $36,000

To calculate the present value, we need to use the following formula:

FV= PV*(1+i)^n

Isolating PV:

PV= FV/(1+i)^n

Year 1= 11,000/(1.12)= $9,821.43

Year 2= 24,000/(1.12^2)= $19,132.65

Year 3= 36,000/(1.12^3)= $25,624.09

Total= $54,578.17

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Explanation:

Earned income consists of income you earn while you are working a full-time job or running a business.

Passive income is income earned from rents, royalties, and stakes in limited partnerships.

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A portfolio manager sells Treasury bonds and buys corporate bonds because the spread between corporate- and Treasury-bond yields
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Answer: The correct answer is "an intermarket spread".

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Dell Technologies Inc. Is an integrated IT infrastructure company that brings together hardware, software, and services. Some of
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3 years ago
Sally’s parents deposited $15,000 into a college savings account on her third birthday. The account had an interest rate of 9.6%
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Answer:

The correct option is yes,the $15,000 will double each 7.5 years.In 15 years ,it will double twice.

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Invariably,in 7.5 years' when Sally would have been 10.5 years(3 years now+7.5 years) the investment would have doubled.

By another 7.5 years when Sally would have been 18 years(10.5 years +7.5 years), the investment would have doubled twice.

The 72 rule is fast-track approach to calculating the duration of an investment.

7 0
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Answer:

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First, we need to highlight what are qualified education expenses especially for tax-free fellowships and scholarships.

Specifically, the qualified expenses that will be tax exempt will be

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