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
arlik [135]
3 years ago
14

Your company will generate $67,000 in annual revenue each year for the next seven years from a new information database. if the

appropriate interest rate is 8.75 percent, what is the present value of the savings?
Business
1 answer:
zimovet [89]3 years ago
4 0

Answer:

Present Value= $340,055.22

Explanation:

Giving the following information:

Cash flow= 67,000

Number of years= 7

Interest rate= 8.75 percent

To calculate the present value, first, we need to calculate the final value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= cash flow

FV= {67,000* [(1.0875^7)-1]} / 9.0875

FV= $611,722.28

Now, we can calculate the present value:

PV= FV/ (1+i)^n

PV= 611,722.28 / (1.0875^7)

PV= $340,055.22

You might be interested in
Which of the following statements is the best way to state your position in a conflict?
Dima020 [189]
Answer A, it causes the least conflict and the person should not feel attacked. It also shares your emotion about the situation in a polite way.
8 0
4 years ago
Read 2 more answers
In today's decentralized business world, ________ the most important strategic decisions.
prisoha [69]
In today's decentralized business world, TOP MANAGERS are the most important strategic decision makers. Decentralization means distribution of decision making power through the hierarchy of an organization. Decentralization has increases in today's business world as it provides a dynamic environment to work.
Though, in decentralization power is also in hands of lower managers, middle managers, etc the top level managers still hold the rights to make decisions.
6 0
4 years ago
Inventory at the end of the year is overstated. Which of the following statements correctly states the effect of the error? a. n
vlabodo [156]

Answer:

The answer is stockholders' equity is overstated

Explanation:

When inventories are overstated it reduces the cost of sales because the excess inventory in accounting records means the ending inventory will be higher and cost of sales will be lower.

When ending inventory is overstated, total assets and retained earnings will be overstated. And when retained earnings is overstated, stockholders' equity is also overstated because retained earnings is a line item under stockholders' equity.

7 0
3 years ago
During a management meeting, Lester, the CEO of Elite Office Equipment, reminded his management team of where the company wants
REY [17]

Answer: Vision statement

Explanation:

Vision statement is referred to as or known as an organization's road map, which tends to indicate what the organization believes to become and achieve by putting forth a well defined direction and route for the organization's growth. These statements usually undergo the minimal revisions throughout the lifetime of an organization, unlike the operational goals that might be revised on yearly basis.

7 0
3 years ago
How do investment banks differ from commercial​ banks? ​(mark all that​ apply.)
mina [271]
I would say d as investment banks are generally concerned with lending money to start up or fund business ventures. Commercial banks lend to almost anyone that can repay.
4 0
3 years ago
Other questions:
  • Fremont Enterprises has an expected return of 18 % and Laurelhurst News has an expected return of 21 %. If you put 43 % of your
    14·1 answer
  • If the demand for a product decreases, we would expect a equilibrium price and equilibrium quantity to both decrease. b equilibr
    12·1 answer
  • Assume that the market for chocolates is perfectly competitive. Which of the following statements would be true in this​ case? A
    5·1 answer
  • Time is an important factor when evaluating a managed mutual fund for which of the following?
    15·1 answer
  • Which Internet technology allows businesses to make presentations and share visual aids such as charts and graphs?
    13·2 answers
  • What is the production​ function? The production function is the relationship between
    13·1 answer
  • On November 1, Year 2, Smith Co. contracted to dispose of an industry segment on February 28, Year 3. Throughout Year 2, the seg
    9·1 answer
  • PS.02 A process that utilizes inexpensive general-purpose capital equipment will tend to have higher skilled workers.
    10·1 answer
  • Recording Initial Transactions and Subsequent Adjustments
    12·1 answer
  • Terrel is designing and maintaining a web page for a local company. In which career pathways would Terrel be involved?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!