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gayaneshka [121]
3 years ago
10

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 3​% per​ year? A. $ 1 comma 036 B. $ 1 comma 243 C. $ 1 comma 658 D. $ 518
Business
1 answer:
laiz [17]3 years ago
3 0

Answer:

NPV= 1,036.16

Explanation:

Giving the following information:

Initial investment= $9,000

Cash flows= $2,700 at the end of each of the next four years.

Interest rate= 3%

To calculate the net present value (NPV), we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf1= 2,700/1.03= 2,621.36

Cf2= 2,700/1.03^2= 2,545

Cf3= 2,700/1.03^3= 2,470.88

Cf4= 2,700/1.03^4= 2,398.92

Total= 10,036.16

NPV= -9,000 + 10,036.16

NPV= 1,036.16

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Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been selected
olchik [2.2K]

Answer:

c. 108.3

Explanation:

Calculation to determine what The value of the CPI in 2004 was:

Using this formula

Consumer Price Index (CPI) 2004 = (2004 Basket cost / Base year basket cost) x 100

Let plug in the formula

Consumer Price Index (CPI) 2004 = (650 / 600) x 100

Consumer Price Index (CPI) 2004 = 108.3

Therefore The value of the CPI in 2004 was:108.3

5 0
3 years ago
) suppose that currency in circulation is $600 billion, the amount of checkable deposits is $900 billion, and excess reserves ar
Inessa05 [86]
Money supply = Currency in circulation + Checkable deposits.=600 + 900 = 1500 Billion

Current deposit ratio = Currency in Circulation/ Checkable deposits. = 600/900 = .667

Excessive reserve ratio = Excess Reserves/Checkable deposits.= 15/900 = .0167

Money multiplier = (1 + C)/(rr + ER + C)= (1 + .667)/ (.0278 + .0167 + .667) = 2.343
4 0
3 years ago
Read 2 more answers
Pera Inc. wishes to issue new bonds. These are 5-year bonds with semi-annual interest; $1,000 par value, and a yield to maturity
Gemiola [76]

Answer:

coupon rate= 13.5%

Explanation:

Giving the following information:

Number of periods= 5*2= 10 semesters

Par value= $1,000

YTM= 0.1/2 = 0.05

Price bond= $1,136

<u>To calculate the coupon rate, first, we need to determine the coupon per semester using the following formula:</u>

Bond Price​= coupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

1,136 = coupon*{[1 - (1.05^-10)] / 0.05} + [1,000/(1.05^10)]

1,136 = coupon*7.722 + 613.91

522.09 = coupon*7.722

$67.61=coupon

<u>Now, the coupon rate:</u>

Coupon= par value*(coupon rate/2)

67.61= 1,000*(coupon rate/2)

67.61= 500coupon rate

0.135=coupon rate

coupon rate= 13.5%

5 0
3 years ago
what are the positives and negatives of starting your career planning now while still in middle school?
andrey2020 [161]

+ is you know what you are looking for in life, what are your goals and what you need to do to achieve them.

- is getting bored soon (changing your mind), and not enjoying your childhood.

I hope i helped :)

6 0
3 years ago
At December 31, 20X3, before recognizing any depreciation expense for 20X3, X Company has a machine with an original cost of $36
shutvik [7]

Answer:

If X Company uses the units of production method for calculating depreciation, depreciation expense in 20X3 will be (rounded):

$45000

Explanation:

Cost                360000  

Accum. Depre 90000  

Usefull life         7  

   

Produce 1 20000  

Produce 2 10000  

Produce 3 50000  

                80000  

   

Deprec=cost/unit    

   

Depre=360000/80000    

Depre= 4,5  

   

Produce 2012  20000 4,5 90000

Produce 2013  10000 4,5 45000

Produce rest   50000 4,5 225000

             80000 4,5 360000

7 0
3 years ago
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