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
koban [17]
3 years ago
10

Suppose that the inflation rate is 2% and the real terminal value of an investment is expected to be $82,500 in 4 years. Calcula

te the nominal terminal value of the investment at the end of year 4. $85,800 $84,150 $89,301 $87,515
Business
1 answer:
Assoli18 [71]3 years ago
3 0

Answer:

The answer is option (c)$89,301

Explanation:

Solution

Given that:

Inflation rate = 2%

The expected value of an investment = 82,500

Now,

nominal terminal value of the investment at the end of year 4.

Thus,

The nominal terminal value rate at the end of year four is given as follows:

= 82, 500 * (1 +2%) ^4

=$89300. 65

= $89,301

You might be interested in
Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. April May June Credit sales $
ruslelena [56]

Answer and Explanation:

The presentation of the cash budget for the three months is shown below:

Particulars                April           May               June  

Beginning

cash balance          $182,000  $264,650     $434,150  

Add:

Cash receipts :    

Credit sales

collections             $577,750  $622,700      $621,650  

Total cash

available                $759,750  $887,350      $1,055,800  

Less:

Cash disbursements  

Purchases              -$289,000 -$302,000    -$282,000  

Wages, Taxes

and expenses        -$137,000   -$129,000     -$179,000  

Interest                    -$15,600    -$15,600        -$15,600  

Equipment

purchases                -$53,500    -$6,600         -$248,000  

Total

cash disbursements  -$495,100  -$453,200    -$724,600  

Ending

cash balance              $264,650   $434,150       $331,200  

Working Notes:

Cash collection from credit sales    

Particulars           March        April        May            June

Credit sales         $561,000  $689,000 $598,000 $751,000

Cash collected :    

35% cash collected

in month of sales $196,350 $241,150  $209,300  $262,850

60% cash collected

in following month

of sales                 $0           $336,600   $413,400  $358,800

Total cash

collected from sales            $577,750  $622,700  $621,650

7 0
3 years ago
Are policymakers susceptible to​ rent-seeking behavior? Explain. ​Rent-seeking behavior
Taya2010 [7]

The correct answer is D: May succeed when many voters are rationally ignorant.

Further Explanation:

Rent-seeking behavior can best be described a person lobbying for a particular business or person. Many times a politician is bribed to give a that business certain legislature rules/laws in favor for that company.

If logrolling is permissible, the rent seeking may be successful. Many times the this produces results that are not favorable to the public and can even be harmful. It really helps to understand the government policies when a person understands rent-seeking behavior.

Some ways a government may fail is;

  • rent seeking behavior
  • Regulatory capture
  • rational ignorance
  • logrolling

Learn more about rent-seeking behavior at brainly.com/question/13767756

#LearnwithBrainly

4 0
3 years ago
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 9 years because the
Diano4ka-milaya [45]

Answer 45k ...

Explanation:

7 0
2 years ago
Brady Company entered into these transactions during May 2022, its first month of operations.
Monica [59]

The effect of each transaction on the accounting equation is to be shown in the attachment below.

The following information should be considered:

  • In the accounting equation, the total assets should be equivalent to the total liabilities & the shareholder equity.
  • It determined the financial position, performance of the company.
  • It is known as the presentation of the balance sheet.

In this way, the accounting equation should be prepared.

Learn more: brainly.com/question/14689492

4 0
2 years ago
You expect KT industries (KTI) will have earnings per share of $4 this year and expect that they will pay out $1.75 of these ear
melisa1 [442]

The value of a share of KTI's stock today is closest to 9.5% , 0.004375 .

Explanation:

Investment Investment (ROI) is an investment performance metric used to evaluate or compare the success of a variety of investment operations.

In addition to the spending price, ROI aims to explicitly calculate the make value of a single project.

g = retention rate

ROI = 0.75*13% = 9.5%,

Price = 1.75/(0.10-0.0975) = 0.004375

5 0
3 years ago
Other questions:
  • A. a career is a series of jobs.
    8·1 answer
  • The Internet raises the bargaining power of customers by: A. reating new opportunities for building loyal customer bases. B. mak
    8·1 answer
  • A new manager has been in their role for three months. They take time each day to get to know and socialize with their team, and
    7·2 answers
  • You are considering investing money in Treasury bills and wondering what the real​ risk-free rate of interest is.​ Currently, Tr
    8·1 answer
  • Fritters, a fast food restaurant chain, known for its quick meals encountered an instance where a customer had blamed its food f
    14·1 answer
  • Brief Exercise 10-2 Your answer is partially correct. Try again. For the quarter ended March 31, 2020, Croix Company accumulates
    15·1 answer
  • During the swing era, economically speaking, American labor industries increasingly turned to _______ and ______ to make the eco
    5·1 answer
  • Enlightened carmakers have hired women designers, engineers, and marketing executives to better understand the way women decide
    6·1 answer
  • Assume that, after the divorce agreement was reached, Steve Simkin found that his Madoff account had substantially increased in
    15·1 answer
  • the true statement from the list below, regarding the Contribution Format Income statement. Multiple Choice The Contribution For
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!