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
disa [49]
3 years ago
5

"Investment X offers to pay you $5,800 per year for 9 years, whereas Investment Y offers to pay you $8,600 per year for 5 years.

If the discount rate is 5 percent, what is the present value of these cash flows?"
Business
1 answer:
Butoxors [25]3 years ago
5 0

Answer:

Present value of investment X = $41,225.37

Present value of investment Y = $37,233.50

Explanation:

The present value of the cash flows can be found by discounting the cash flows at the discount rate.

This can be found using a financial calculator

Cash flow each year from year 1 to 9 for investment X = $5,800 

Discount rate = 5%

Present value = $41,225.37

Cash flow each year from year one to year 5 for investment Y = $8,600 

Discount rate = 5%

Present value = $37,233.50

I hope my answer helps you

You might be interested in
The manager of a chain of fast-food restaurants has noticed that the number of breakfast customers has fallen by 50 percent in t
Darya [45]

Answer:

c. make an accurate diagnosis of what is causing the problem

Explanation:

The manager of the fast-food restaurant should understand the underlying problem first. Working on the assumption that it's because of a competitor marketing campaign may not give the desired results.  A customer's preference may change due to many reasons.

The manager should make an accurate diagnosis of the problem first. With a precise reason as to why customers as fleeing, then he can develop a counter-strategy. Retaining the current member of the crew will not reverse the situation. Reducing prices may affect profitability, which is not the desired result. With low prices, some customers may question the quality of the breakfast.

7 0
3 years ago
A decrease in the wage rate of pizza makers will cause a movement from Point B on supply curve Upper S 2 to ______________.
xenn [34]

Answer:

D. supply curve Upper S 3

Explanation:

8 0
3 years ago
Tax refunds:
shepuryov [24]
The answer is A, occur when a taxpayer's income tax withholding exceeds what they owe.
8 0
3 years ago
Navajo Corporation traded a used truck (cost $25,000, accumulated depreciation $22,500) for a small computer worth $4,125. Navaj
bulgar [2K]

Answer:

Calculation of Gain or Loss:

Book Value of Truck:

= 25,000 - 22,500

= $2,500

Gain on Exchange:

= 4,125 - 2,500 - 625

= $1,000

Therefore, the journal entry is as follows:

Accumulated Depreciation A/c Dr. $22,500

computer A/c                              Dr. $3,125

                   To Truck                                            $25,000

                   To Cash                                              $625

(To record the Truck)

6 0
3 years ago
Why is brainly such a stupid app? Why did I have to get my email address? Why is my question not popping up? Where's the answer?
skelet666 [1.2K]

why are you so weaird

7 0
2 years ago
Read 2 more answers
Other questions:
  • Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only o
    12·1 answer
  • Ben owns a lawn care business. from experience, ben has found that john deere equipment lasts almost twice as long as competitor
    12·1 answer
  • In the context of foreign market entry, ________ requires no equity investment and thus has a low risk, low rate of return, and
    14·2 answers
  • The year-end adjusted trial balance of Hilltoppers Corporation included the following account balances: Cash, $3,600; Equipment,
    8·1 answer
  • Explain the difference between implicit and explicit costs
    11·1 answer
  • Assume that the interest rate is 4% compounded monthly. Roy buys 100 shares of Moogle company, at the market price of $30 per sh
    9·1 answer
  • On March 1, the actual cash received from cash sales was $36,006, and the amount indicated by the cash register total was $36,01
    12·1 answer
  • One of the reasons why cash flow analysis is popular is because ________.
    13·1 answer
  • Tercer reports the following for one of its products. Direct materials standard (4 lbs. $2 per lb.) Actual direct materials used
    12·1 answer
  • Scott Company had sales of $12,350,000 and related cost of goods sold of $7,500,000. Scott provides customers a refund for any r
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!