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bonufazy [111]
3 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]3 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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No, he should <u>not</u> pick up the $100 bill

Explanation:

If his salary were those $20 billion (20,000,000,000) by a year. Let's find out how much this is by a second.

First let's find out how much is that salary by <em>a day</em>, then by <em>an hour</em>, then by <em>a minute</em> and finally by <em>a second</em>.

\frac{20,000,000,000}{year}*(\frac{1 year}{365d})*(\frac{1d}{24h})*(\frac{1}{60min} )*(\frac{1min}{60s} )  \\\\  =\frac{20,000,000,000}{365*24*60*60} \\ \\ =\frac{20,000,000,000}{31,536,000} \\ \\ =634.19

So he would be losing money if he picks up the $100 bill, because he would be missing 634 dollars per second.

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3 years ago
When a market researcher has reported data, statistics, and information that are not consistent with a study's objectives, the r
Sedbober [7]

Answer:

The answer is the D

Explanation:

Because despite the fact that a research work has the correct interpretation of the information, the correct statistical analysis, understandable sea in a global vision and performing the correct emphasis on the statistics, all these well done works will be underestimated and lose importance if the Information has no direct and applicable relationship with the object of study. IT IS IRRELEVANT INFORMATION FOR THE RECEIVER because this information does not need it at this time

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A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 3-for-1 stock split, the number
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A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 3-for-1 stock split, the number of shares outstanding after the split will be 120,000 shares.

Stocks are gadgets of fair ownership in an agency. For a few businesses, shares exist as an economic asset providing for an identical distribution of any residual profits, if any are declared, in the shape of dividends.

In monetary markets, a share is a unit used in mutual finances, limited partnerships, and real estate funding trusts. Percentage capital refers to all of the stocks of an agency. The owner of shares within the agency is a shareholder of the business enterprise.

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Learn more about shares here brainly.com/question/25630152

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2 years ago
What explanations have economists offered for why firms​ don't raise prices when doing so would seem to increase​ profits? Firms
motikmotik

Answer: To keep the customer base

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