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
kap26 [50]
3 years ago
10

What is the present value of a perpetuity that makes annual payments of $10,000 at 4% compounded annually? (round your answer to

the nearest dollar)
Business
1 answer:
geniusboy [140]3 years ago
8 0

Answer:

Present Value of Perpetuity is $25,000

Explanation:

Cash flow = $10,000

Interest rate / Yield = 4%

Present Value of Perpetuity = Cash flows / interest Rate or Yield

Present Value of Perpetuity = $10,000 / 4%

Present Value of Perpetuity = $10,000 / 0.04

Present Value of Perpetuity = $25,000

You might be interested in
In a workplace, ________ involves overt threats or bullying directed at members of specific groups of employees.
stiks02 [169]
In a workplace, intimidation involves over threats or bullying directed at a members of specific groups of employees
7 0
3 years ago
A computer store has purchased three computers of a certain type at $500 apiece. It will sell them for $1000 apiece. The manufac
Yuliya22 [10]

Answer:

$700

Explanation:

Given.

X = Number of Computers Sold

p(0) =.1, p(1) =.2, p(2) =.3 and p(3) =.4.

h(x) = Revenue - Cost

Revenue = 1000X + 200(3 - X)

Cost = 1500

So, h(X) = 1000X+ 200(3 - X) - 1500

h(X) = 1000X + 600 - 200X - 1500

h(X) = 800X - 900

The possible range of Computer sold is 0 to 3 (I.e p(0) to p(3))

Hence, we'll solve for h(0) to h(3)

h(0) = 800(0) - 900

h(1) = 0 - 900

h(0) = -900

h(1) = 800(1) - 900

h(1) = 800 - 900

h(1) = -100

h(2) = 800(2) - 900

h(2) = 1600 - 900

h(2) = 700

h(3) = 800(3) - 900

h(3) = 2400 - 900

h(3) = 1500

Calculating E(h(x))

E(h(x)) = p(0).h(0) + p(1).h(1) + p(2).h(2) + p(3).h(3)

So,

E(h(x)) = 0.1 * -900 + 0.2 * -100 + 0.3 * 700 + 0.4 * 1500

E(h(x)) = -90 - 20 + 210 + 600

E(h(x)) = 700

So, E(h(x)) = $700

8 0
3 years ago
A. if you found a stock with a zero historical beta and held it as the only stock in your portfolio, you would by definition hav
Arada [10]
Answer is  c. the beta of a portfolio of stocks is always smaller than the betas of any of the individual stocks. 

4 0
4 years ago
In economics, the term "capital" refers to :
IrinaVladis [17]

Answer:

D. the money in one's pocket

Explanation:

this is so because the financual assets needed fpr a business to produce good and/or services requires money

7 0
3 years ago
Abc audio sells headphones and would like to earn after tax profit of $400 every week. each set of headphones costs $5 and is so
MrRa [10]
Let us denote the number of headphones with h. If tax rate applies on the revenue of 10h, then the cost and the revenue can be calculated as: cost= 5h + 200revenue=10h - 0.2(10h) = 8h
8h - (5h + 200) = 4008h - 5h - 200 = 4003h = 600h = 200
So, in order to meet the goal of $400 we should sell 200 headphones.
8 0
3 years ago
Read 2 more answers
Other questions:
  • g "A company with an operating income of $88,000 and a contribution margin ratio of 70% has a margin of safety of: "
    8·1 answer
  • Assuming that the market is arbitrage-free, if a three-month zero-coupon bond yields 2.25 percent sign, a six-month zero-coupon
    7·1 answer
  • What happens when a bond becomes due? AThe issuer will pay you back, minus interest. BYou pay it back to the issuer, minus inter
    10·1 answer
  • Delta products, Inc., has recently switched at least partly from older technologies using fossil fuels to new technologies power
    7·1 answer
  • Sheffield Corporation had net credit sales of $14300000 and cost of goods sold of $9070000 for the year. The average inventory f
    7·2 answers
  • You want to retire exactly 35 years from today with $2,020,000 in your retirement account. If you think you can earn an interest
    11·1 answer
  • A legal firm would be considered a
    12·1 answer
  • Beth files a suit against Cruise Line, Inc. Cruise responds that it appears from the pleadings that the parties do not dispute t
    11·1 answer
  • Marcy's, Inc. operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2013 third-quarter r
    13·1 answer
  • A businessperson meets with an executive from another country, and she immediately begins to discuss business. The executive mig
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!