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
lord [1]
3 years ago
13

Joseph has just accepted a job as a stockbroker. He estimates his gross pay each year for the next three years is $35,000 in yea

r 1, $21,000 in year 2, and $32,000 in year 3. The present value of these cash flows, if they are discounted at 4%, is closest to ______.
A. $79,452.30
B. $80,294.50
C. $81,517.10
D. $88,000
Business
1 answer:
Kamila [148]3 years ago
5 0

Answer:

The present value of the cash flows is closest to $81517.10. Thus, option C is the correct answer.

Explanation:

The present value of the cash flows is the value of future cash flows in today's terms. The cash flows are discounted back to today's value using an appropriate discount rate. The formula to calculate the present value of such cash flows is,

PV = CF1 / (1+r)  +  CF2 / (1+r)^2  +  CF3 / (1+r)^3

Thus, the PV = 35000 / (1+0.04)  +  21000 / (1+0.04)^2  +  32000 * (1+0.04)^3

PV = $81517.4101

You might be interested in
On November 6, 20X7, Zucor Corp. purchased merchandise from an unaffiliated foreign company for 50,000 units of the foreign comp
fgiga [73]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

8 0
3 years ago
Probett's Auto Body Repair Shop had revenues that averaged $90,000 per week in April and $80,000 per week in May. During both mo
Dmitriy789 [7]

Answer:

For April, revenue was $90,000 and labor hours were 4x[(40x6)+(25x4)]. This is 90,000/1,360 = 66.18 dollars per hour of labor. For May, revenue was $80,000 and labor hours were 4x[(40x6)+(10x2)] This is 80,000/1,040 =  77 dollars per hour of labor a difference of $ 10.82per hour. The percentage change in productivity between April and May, then, is 3.95/44.12 = 0.1634935026x 100 = 16.35%

good luck ❤

6 0
3 years ago
Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices. All stores are lo
Rzqust [24]

Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices. All stores are located in the United States, predominantly in small towns in 24 midwestern and south eastern states. In the current year, the company reported average inventories of $ 1,668 million and an inventory turnover ratio of 8.0.

Fixed assets turnover ratio = 9.04 Net sales / Avera.

This ratio divides net sales by net fixed assets, calculated over an annual period. The net fixed assets include the amount of property,

Using Fixed Assets turnover ratio, we can find the net sale

Fixed Assets turnover = Net sale/Average fixed assets

$ 2,098 Net sale/1218674000

Net sale is=$ 2,098 × 1218674000

Net Sales is=$ 9.140.055000

Learn more about turnover ratio  here

brainly.com/question/27523896

#SPJ4

6 0
1 year ago
The following data were reported by a corporation: 20,000 15,000 3,000the number of outstanding shares is:
7nadin3 [17]

Outstanding shares will be 12,000 shares.

These are calculated as follows:

Here the number of shares are as follows;

Authorized shares are 20,000, Issued shares are 15,000, Treasury shares are 3,000

Therefore, the number of outstanding shares can be calculated as follows

Number of outstanding shares = Issued stock- Treasury stock

= 15,000-3,000

= 12,000

Hence the number of outstanding shares is 12,000

To know more about outstanding shares here:

brainly.com/question/17167434

#SPJ4

8 0
1 year ago
Suppose that Rearden Metal currently has no debt and has an equity cost of capital of 12%. Rearden is considering borrowing fund
Alexxandr [17]

Answer:

Option (C) is correct.

Explanation:

We have to use MM proposition that cost of equity will change itself in such a manner so that it can take care of its debt.

Cost of equity:

= WACC of all equity firm + (WACC of all equity - Cost of debt ) × (Debt -to-equity ratio)

At the beginning, when there was no debt,

WACC = cost of equity = 12 %

Levered cost of equity:

= 12% + ( 12% - 6%) × 0.5

= 15%

Therefore, Rearden's levered cost of equity would be closest to 15%.

4 0
3 years ago
Other questions:
  • Polly sells goods to customers in exchange for a $10,000 noninterest-bearing note due in 3 years. The interest rate on this type
    10·1 answer
  • As discussed in the narrated power point presentation on groups and teams, _____________ is one of the most important advantages
    13·1 answer
  • All business strategies seek to gain competitive advantage. <br> a. True <br> b. False
    12·1 answer
  • Consent of the client before completion of a trade made between the firm and a client must be made when A) an investment adviser
    12·1 answer
  • Swifty Corporation manufactures widgets. Bowden Company has approached Swifty with a proposal to sell the company widgets at a p
    15·1 answer
  • Soundgarden Company sold 200 color laser copiers on July 10, 2020, for $4,000 apiece, together with a 1-year warranty. Maintenan
    13·1 answer
  • Peace of mind provides​ house-sitting for people while they are away on vacation. Some of its customers pay immediately after th
    5·1 answer
  • Multiple choice-- economics
    8·1 answer
  • Look at the pic. Help me pls.
    5·1 answer
  • Question 10 of 15 A tax-sheltered annuity is a special tax-favored retirement plan available to ACertain age groups only. BCerta
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!