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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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In the country of Econoville, tax revenue collected by the government this year is $24 million, and government outlays are $28 m
Serjik [45]

Answer:

E

Explanation:

The difference between the income of a government, in this case by taxes, and the expenses in this case outlays for any reasons such a public expenses is a deficit in a case like this one that is negative or surplus in the case of positive.

3 0
3 years ago
Costs such as transportation-out, sales commissions, uncollectible accounts receivable, and advertising costs are sometimes call
Flura [38]

Costs such as transportation-out, sales commissions, uncollectible accounts receivable, and advertising costs are sometimes called <u>direct costs.</u>

<h3>Wat are direct cost?</h3>

A direct cost is known to be the said price that can be said to be straightly linked or tied to the manufacturing of specific goods or services.

Not that A direct cost is one that  be known via to the cost object, that is it can be a service, product, or others.

Hence, Costs such as transportation-out, sales commissions, uncollectible accounts receivable, and advertising costs are sometimes called <u>direct costs.</u>

Learn more about direct costs from

brainly.com/question/26245657

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6 0
2 years ago
If $30 can buy a dozen roses in the United States, and purchasing power parity holds, then $30 should also be enough to buy a do
pochemuha

Answer: b. non-identical roses

c. transportation costs

d. roses are not perfectly tradable

e. prices may not have fully adjusted

Explanation:

The roses in the two countries might not be identical and so will probably not be charged the same. They may be Differentiated so different prices will be charged.

There is also transportation costs to account for. If the roses are being grown in the US for instance the transfered to Turkey, the transport cost will be included in that figure as opposed to the US where it was produced.

If the Roses are not perfectly tradable, that could lead to a difference in price as well because the amounts will differ as the roses cannot go for the exact price in both countries.

Finally, prices in Turkey may not have fully adjusted to prices in the US yet. When that happens then they might be charged at the same amount.

7 0
3 years ago
_____ use another manufacturer's already established channel and are used most often when the creation of marketing channel rela
katrin2010 [14]
"Strategic channel alliance" <span>use another manufacturer's already established channel and are used most often when the creation of marketing channel relationships may be expensive and time-consuming.

Hope this helps !

Photon</span>
8 0
3 years ago
Pearson Motors has a target capital structure of 35% debt and 65% common equity, with no preferred stock. The yield to maturity
coldgirl [10]

Answer:

ke=16.29

Explanation:

WACC=We*ke+Wd*kd(1-t)

Where:

We=weight of common equity in the capital structure

ke=cost of equity

Wd=Weight of debt in the capital structure

kd= Cost of debt i.e yield to maturity on the bonds

t= tax rate.

Since WACC is estimated to be 12.9%

0.129=0.65*ke+0.35*0.11(1-0.4)

ke=\frac{0.129-[0.35*0.11(1-0.4)]}{0.65}=0.162923

4 0
3 years ago
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