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
ollegr [7]
3 years ago
11

Suppose that an income-producing property is expected to yield cash flows for the owner of $150,000 in each of the next five yea

rs, with cash flows being received at the end of each period. If the opportunity cost of investment is 8% annually and the property can be sold for $1,250,000 at the end of the fifth year, determine the value of the property today.A) $304,704.00B) $1,449,635.50C) $1,481,143.98D) $2,000,000.00
Business
1 answer:
damaskus [11]3 years ago
5 0

Answer:

B) $ 1.449.635,50

Explanation:

YEAR 1: $150.000  PV= FV/(1+i)^n  =  $150.000/ (1+0,08)^1 = $138.888,89

YEAR 2: $150.000  PV= FV/(1+i)^n  =  $150.000/ (1+0,08)^2 = $128.600,82

YEAR 3: $150.000  PV= FV/(1+i)^n  =  $150.000/ (1+0,08)^3 = $119.074,84

YEAR 4: $150.000  PV= FV/(1+i)^n  =  $150.000/ (1+0,08)^4 = $110.254, 48

YEAR 5: $150.000+ $1.250.000= $1.400.000  PV= FV/(1+i)^n  

PV=  $1.400.000/ (1+0,08)^5 = $ 952.816, 48

TOTAL =  $1.449.635,50

You might be interested in
What are the two main body cavities?
Darya [45]
Dorsal and ventral cavities
7 0
3 years ago
Read 2 more answers
When the Constitution was adopted in 1789, why was the federal government granted the authority to raise taxes?
Gelneren [198K]

Answer: Debt Payment, National Defense and Welfare of the United States

Explanation:

When the Articles of the Confederation which was the first Constitution of the United States was ratified in 1781, it included a clause that empowered the State Governments to decide what to give to Congress. Some of them gave less and some gave nothing of what they were supposed to give.

Congress was therefore powerless and risked falling apart and with it, the Central Government.

The Constitution of 1789 changed this by including the 'Taxing and Spending' clause.

This clause gave Congress the right to impose taxes. The clause states that Congress can levy taxes to enable it to pay off American debt as well as for the defense and general welfare of American citizens.

7 0
3 years ago
A market-oriented organization targets its products at "everybody" or "the average customer."
Doss [256]
I’d go with false ..
7 0
4 years ago
This is to inform you that I will be leaving work early today.
worty [1.4K]
wow thanks for sharing
5 0
3 years ago
What is the total amount of current assets to be reported on XYZ Company's 12/31/X1 classified balance sheet
BartSMP [9]

Answer:

$112,800

Explanation:

The computation of the total amount of current asset reported is as follows:

= Cash + account receivable + supplies + prepaid rent

= $53,000 + $15,000 + $8,800 + $36,000

= $112,800

Hence, the amount reported is $112,800

We simply added the above four items so that the current asset value could come

6 0
3 years ago
Other questions:
  • You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last 1717 years. You expect tha
    10·1 answer
  • When an agency creates or modifies a procedural rule, it must go through the notice and comment requirements of the apa?
    7·1 answer
  • We collected a sample of the prices of new homes. The mean of our sample is $155,000, with a standard deviation of $15,000. Calc
    6·1 answer
  • The type of work you do to earn a living is called A. Occupation B. Skills C. Identity B. Dignity
    14·1 answer
  • Flint Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts
    11·1 answer
  • A newlywed couple was having trouble resolving their marital disputes. The husband felt like he was trying to solve all the prob
    9·1 answer
  • Bob, a merchant, makes an offer to Linda, another merchant, to buy 1,000 of her widgets in a signed letter containing all necess
    14·1 answer
  • Which of the following is a trade-off mentioned in the article? Choose one: A. Obesity-related health costs are more than $168 b
    15·1 answer
  • Question 1 / 10
    9·1 answer
  • Which facilities or amenities are most commonly available on a cruise chip?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!