For a pharmaceutical company, the most suitable base for allocating research and development costs to the finished products wou
1 answer:
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Answer:
$1,028.11
Explanation:
In this question we use the Present value formula that is presented on the attached spreadsheet
Given that,
Future value = $1,000
Rate of interest = 6.7% ÷ 2 = 3.35%
NPER = (20 years - 5 years) × 2 = 30 years
PMT = $1,000 × 7% ÷ 2 = $35
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $1,028.11
