Answer:
PV= $48,295.99
Explanation:
Giving the following information:
Future Value (FV)= $150,000
Number of periods (n)= 10 years
Interest rate (i)= 12% = 0.12
<u>To calculate the initial investment (PV), we need to use the following formula:</u>
PV= FV / (1+i) n
PV= 150,000 / (1.12^10)
PV= $48,295.99
In the given scenario, the person who is likely to win and
have the upper hand is Lance. It is because Byron’s action is clearly showing a
disability discrimination of which he clearly stated as to why he did not hired
him in the first placed because of his disability.
The bank would want to know the person’s credit history so the bank knows the person will repay the loan.
Answer:
Net Present Value = $28756.79
Explanation:
First we need find the real rate of interest
Real rate of interest = (Nominal rate of interest - Inflation rate )
Real Rate of interest = (10.76% - 4%)
Real of Interest = 6.76%
Now using stream of cash flows and discount the at 6.76%
0 -12800 1.000
1 10000 0.937
2 10000 0.877
3 10000 0.822
4 10000 0.770
5 10000 0.721
Through multiplying discount value with cash flow we get the discounted value of cash flows.
0 -12800 x 1.000 = -12800
1 10000 x 0.937 = 9370
2 10000 x 0.877 = 8770
3 10000 x 0.822 = 8220
4 10000 x 0.770 = 7700
5 10000 x 0.721 = 7210
Adding the discounted cash flows we get the value of Net present value and that is equal to $28756.79
work, hard work, employees,gain/profit
