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astra-53 [7]
3 years ago
8

Present value​ (with changing interest​ rates).

Business
1 answer:
densk [106]3 years ago
6 0

Answer:

present value = $12811.98

present value = $11428.17

present value = $9964.92

Explanation:

given data

injury settlement = ​$14,000

time = 3 year

opportunity cost = 3​%

opportunity cost = 7​%

opportunity cost = 12​%

solution

we will apply here Present value formula that is

present value = \frac{future\ value}{(1+r)^t} ..............................1

put here value of opportunity cost rate we get

present value = \frac{14000}{(1+0.03)^3}

present value = $12811.98

and

present value = \frac{14000}{(1+0.07)^3}

present value = $11428.17

and

present value = \frac{14000}{(1+0.12)^3}

present value = $9964.92

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Explanation:

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Land costing $77,900 was sold for $99,800 cash. The gain on the sale was reported on the income statement as other revenue. On t
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Taxes represent __________ of the business. Multiple Choice an equity liability a cash inflow a cash outflow an accounts receiva
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