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bonufazy [111]
4 years ago
13

You are offered an investment that will make three $5,000 payments. The first payment will occur four years from today. The seco

nd will occur in five years, and the third will follow in six years. If you can earn 12 percent, what is the future value of the cash flows? What is the most this investment is worth today?
Business
1 answer:
LenaWriter [7]4 years ago
5 0

Answer:

what is the future value of the cash flows?

$16,872

What is the most this investment is worth today?

$8548

Explanation:

<u>First Payment</u>

$5000 payment will occur Four year from now

$5000 payment will occur Five year from now

$5000 payment will occur six year from now

Interest rate = 12%

Future value at year 6 = (5000 (1+0.12)^2) + (5000 (1+0.12)^1) + 5000

Future value at year 6 = 6272 + 5600 + 5000 = $16,872

Present value of investment = Future Value / (1+r)^n

Present value of investment = $16,872 / (1+0.12)^6

Present value of investment = $8547.88

Present value of investment = $8548 (Rounded off to nearest whole Number)

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the project manager of a sports apparel company, estimates that the demand for jogging shoes is likely to decline in the coming
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Answer:

linkages

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Because a cosigner is another person who is also responsible for ensuring the loan is paid.

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The nodes on the original internet system were ________. large corporations marketing companies educational institutions militar
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The following data is given for the Bahia Company: Budgeted production 1,049 units Actual production 971 units Materials: Standa
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Answer:

c.$27,284.90 unfavorable

Explanation:

Standard variable overhead rate                     =$27.00

Standard hours allowed per completed unit  =4.3

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3 years ago
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