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ozzi
3 years ago
9

You just won a prize that will pay you $800 today and $500 a year for the next three years. Which is the correct formula for com

puting the present value as of today at 6 percent?
a. PV = $500/1.06 + $500/1.062+ $500/1.063
b. PV = $800 PV $800/1.06$500/1.06+$500/1.06 $500/1.06
c. PV =$800+ $500/1.06 $500/1.06+ $500/1.061
d. PV = $800(1.06)+ $500 +$500/1.06 $500/1.06
Business
1 answer:
cupoosta [38]3 years ago
7 0

Answer:

Total PV= 800 + 500/1.06^1 + 500/1.06^2 + 500/1.06^3

Explanation:

Giving the following information:

Cash flows:

Cf0= $800

Cf1= $500

Cf2= $500

Cf3= $500

Discount rate= 6%

The $800 is received today, therefore, it is already its present value.

For the cash flow for the next three years, we need to use the following formula on each cash flow.

PV= FV/(1+i)^n

Total PV= 800 + 500/1.06 + 500/1.06^2 + 500/1.06^3

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Answer:

Depreciation expense =  $4,400

Accumulated depreciation = $13,200

Explanation:

Depreciation: The depreciation is the amount which decreases the value of the asset. It can be by obsolescence, usage, tear and wear, etc.

The annual depreciation is given i.e. $4,400 which will be charged in depreciation expense whereas the accumulated depreciation would be equal to

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= $4,400 × 3

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3 years ago
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Oksana_A [137]

Answer:

(d) Board of directors

Explanation:

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2 years ago
please discuss the similarities and differences between transformational and charismatic leadership. Choose an individual that q
Nookie1986 [14]

Answer:

The transformational leaders are bureaucratic and charismatic are people oriented in nature.

Explanation:

  • The charismatic leaders are also called as the transformational leaders and shares various things.
  • Charismatic leaders make their status better and transformational leaders focus on the transformation of the organization's vision. The main difference is the focus and the audience.
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If a firm increases its dividend payout rate the: firm will have less cash available for new investment. Unselected firm’s sto
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Answer:

1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. True

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3. Retention ratio will rise at the same rate. False

Explanation:

1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. This assertion is true because the company would be paying out a larger portion of earnings as dividends, hence the balance portion for new investment will be lower as a result.

2. Stock price will likely fall by the same percentage. This assertion is most unlikely because normally, if a particular stock is paying higher dividends investors will have high expectation and be willing to pay a higher price to buy a stock that pays high dividends

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