300,000/(2-1.40) =500,000
The answer to your question is 500,000
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Answer: a. $4400.81
b. $4114.99
c. $3625.60
Explanation:
Present value of money is the worth of money at a particular period of time.
a. If the discount rate is 12 percent, what is the present value of these cash flows?
Present value at 12% will be:
= 1250/1.12 + 1180/1.12^2 + 1570/1.12^3 + 1930/1.12^4
= $4400.81
b. What is the present value at 15 percent?
Present value at 15% will be:
= 1250/1.15 + 1180/1.15^2 + 1570/1.15^3 + 1930/1.15^4
= $4114.99
c. What is the present value at 21 percent?
Present value at 21% will be:
= 1250/1.21 + 1180/1.21^2 + 1570/1.21^3 + 1930/1.21^4.
= $3625.60
Answer:
7.52689%
Explanation:
Ervin Company:To break even with an 93% success rate, Ervin will need to recoup
$1/0.93=$1.0752689.
Hence:
Winthrop should charge a return greater than ($1.0752689/$1.00) -1
=($1.0752689)-1
=0.0752689×100
=7.52689%
Therefore th eloan rate Winthrop Enterprises should charge Ervin Company for loans will be 7.52689%
Answer:
Equilibrium Price = 48
Equilibrium Quantity = 164
Explanation:
Market equilibrium at : Market Quantity Demand = Market Quantity Supplied
QD = QS
500 - 7P = 20 + 3P
500 - 20 = 3P + 7P
480 = 10 P
P = 480 / 10
Equilibrium Price = 48
Equilibrium Quantity : Quantity Demanded = Quantity Supplied
Putting value of equilibrium price in QD & QS (equalised), we get :
500 - 7(48) = 20 + 3 (48)
Equilibrium Quantity = 164