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
valentinak56 [21]
3 years ago
6

Doris's Fashions has just signed a $2.2 million contract. The contract calls for a payment of $0.6 million today, $0.8 million o

ne year from today, and $0.8 million two years from today. What is this contract worth today if the firm can earn 8.2 percent on its money
Business
1 answer:
Pavlova-9 [17]3 years ago
4 0

Answer:

$2.02 million

Explanation:

We need to calculate the present value of Doris's contract given the following three cash flows:

Year 0 $0.6 million

Year 1 $0.8 million

Year 2 $0.8 million

interest rate = 8.2%

present value (in million) = $0.06 + ($0.8 / 1.082) + ($0.8 / 1.082²) = $0.6 + $0.74 + $0.68 = $2.02 million

*present value formula = future value / (1 + r)ⁿ

You might be interested in
You can spend $10 for lunch and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the p
nalin [4]

Answer: income effect of a price change.

Explanation: The income effect is known as the effect on real income when price changes, it can however be positive or negative. The income effect expresses the impact of increased purchasing power on consumption.

In this scenario, spending $10 for lunch, and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the price for cheeseburger has increased from $5 to $6, so you decide to purchase just one cheeseburger, this scenario best illustrates the income effect of a price change.

7 0
3 years ago
You are a recent college graduate who has just landed your first job. The company that hired you has
Alex73 [517]
Well 50% of 50,000 is 25,000 so I’d say make sure your cars don’t go above 15,000 a Year cause Car(s)
5 0
3 years ago
13. In a market system, how are the terms of exchange established? a. Consumer advocacy groups establish fair prices for items,
yuradex [85]

The forces underlying supply and demand interact to determine the market price.

<h3><u>Explanation:</u></h3>

The persons involving in the activities of trading comprises the market system. It includes sellers, buyers and others involved in trading process. They also includes the buyers, consumers, producers who are the major players of the market system who determines the economic activity in it.

The supply and demand law is the major determinant of the production of goods and services in a market economy. The natural resources, land, capital and labor are the supplies. The purchasing power of the government, consumers and business are the demands. The forces underlying supply and demand interact to determine the market price.

3 0
3 years ago
Paul says to Miguel, "Did you get an interview with Bubbling Creek Realty? They haven't called me." Miguel does not want to tell
andrey2020 [161]

Answer:

changing the subject                                

Explanation:

In simple words, changing the subject refers to the method of privacy setting under which an individual  who does not want to take about a particular issue with the other tries to persuade the other by starting a new topic which might be more interesting.

That issue could be of more importance to the other individual or he or she might be an expert who will get the chance to show their knowledge. This technique is more effective withe hyper active people who talk a lot.

4 0
3 years ago
Read 2 more answers
Statutes that require proof of character and skill and impose penalties for violation are considered to be revenue-raising in na
denis23 [38]
I think its true. I don't think its false so true

4 0
3 years ago
Other questions:
  • What activities might require you to provide your social security nunber
    13·2 answers
  • Mike has saved $6,000 for a down payment on a car. He qualifies for two car loans. One has a 10% interest rate that does not req
    9·1 answer
  • 6. You own a coal mining company and are considering opening a new mine. The mine will cost $120.0 million to open. If this mone
    9·1 answer
  • At goodspeak telecommunications, employees receive a cash bonus when they submit names of people who subsequently accept employm
    13·1 answer
  • Which of the following is not considered part of your income?
    6·1 answer
  • What is an organization that uses resources to produce a product which
    11·1 answer
  • Most employees who use flextime prefer to work independently of others. In order to accommodate this preference, businesses perm
    9·1 answer
  • A(n) ___________________ is performed to identify the most serious risks, help you manage risks, and identify the best methods t
    13·1 answer
  • A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this,
    11·1 answer
  • _______ consumers in the united states have increasing influences on mainstream u. S. Culture, and the buying power of this grou
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!