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Gnesinka [82]
3 years ago
5

If $ 9 comma 000 is invested in a certain business at the start of the​ year, the investor will receive $ 2 comma 700 at the end

of each of the next four years. What is the present value of this business opportunity if the interest rate is 6​% per​ year?
Business
1 answer:
Marianna [84]3 years ago
4 0

Answer:

PV= $9,355.78

Explanation:

Giving the following information:

If $ 9,000 is invested in a certain business at the start of the​ year, the investor will receive $ 2,700 at the end of each of the next four years.

Interest rate= 6%.

First, we need to find the final value

FV= {A*[(1+i)^n-1]}/i

A= payment

FV= {2,700*[(1.06^4)-1]}/0.06= 11,811.46

Now, we calculate the present value:

PV= FV/(1+i)^n

PV= 11,811.46/1.06^4= $9,355.78

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job with benefits

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Explanation:

i got them right :D.

4 0
2 years ago
A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold
MissTica

Answer:

Option E: $40,000 - Cash from sale of Machine

Explanation:

Cash flow from Investing activities section of the cash flow statement should include cash received on the sale of property, plant & equipment, cash paid to acquire property, plant & equipment, cash paid for investments in or as loans to other companies and dividends received from any investments.

In case of sale of a Machine, $40,000 received on sale should be reported as source of cash in the cash flows from investing activities section.

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Answer:

Fear-based marketing is common these days which attract many users.

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