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
vekshin1
3 years ago
14

An estate provides a perpetuity with payments of X at the end of each year. Seth, Susan, and Lori share the perpetuity such that

Seth receives the payments of X for the first n years and Susan receives the payments of X for the next m years, after which Lori receives all the remaining payments of X. Which of the following represents the difference between the present value of Seth's and Susan's payments using a constant rate of interest?
a. X[an-vnam]
b. X[¨an-vn¨am]
c. X[an-vn+1am]
d. X[an-vn-1am]
e. X[van-vn+1am]
Business
1 answer:
DENIUS [597]3 years ago
8 0

Answer: a. X[a_{n} -v^{n} a_{m} ]

Explanation:

The Present Value of the perpetuity for Seth is denoted by;

= X * a_{n} because Seth receives it for n years.

The Present Value of the perpetuity for Susan is denoted by;

=  Xv^{n} * a_{m} because it is the value after n periods multiplied by the payments received for m periods.

The result is;

= X * a_{n}  - Xv^{n} * a_{m}

= X[a_{n} -v^{n} a_{m} ]

You might be interested in
Powerpoint slides can be quite effective and used best when they
Artyom0805 [142]
<span>The correct statement on Powerpoint slides, which is a presentation of a series of still images on a projection screen or electronic display device, is that: Powerpoint slides can be quite effective and used best when they are used properly as an enhancement to the speaker's presentation.</span>
8 0
3 years ago
Monica wants to sell her share of an investment to Barney for $80,000 in 5 years. If money is worth 6% compounded semiannually,
Fittoniya [83]
Answer: $59,780.65

Explanation:

To find out what she would accept today, we need to apply the present value formula which is= V.P(1+i)^-n

So, $80,000(1+6%)^-5= $59,780.65
7 0
3 years ago
A concrete block making company is developing an aggregate capacity plan from the following sales forecast for its 6” and 8” con
prohojiy [21]
We need to see that table pls send a picture to it also if u may pls mark me braliest
7 0
3 years ago
Sub-prime loan company is thinking of opening a new office, and the key data are shown below.
Nookie1986 [14]
To complete the above question, please see below:

Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) 

<span>WACC 10.0% </span>
<span>Opportunity cost $100,000 </span>
<span>Net equipment cost (depreciable basis) $65,000 </span>
<span>Straight-line depreciation rate for equipment 33.333% </span>
<span>Annual sales revenues $123,000 </span>
<span>Annual operating costs (excl. depreciation) $25,000 </span>
<span>Tax rate 35%
</span>
The answer is <span>12,271</span>
5 0
3 years ago
When I called about the cost of theses items it was implied total would only be 35.00
elixir [45]

Answer:

plus tax

Explanation:

7 0
3 years ago
Other questions:
  • BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. If BrewCo is able to reduce its
    6·1 answer
  • Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March, the partners plan to expand
    9·1 answer
  • Jefferson Cleaning signed an agreement with Willis Company on December 15 to provide cleaning services every Friday. The service
    9·1 answer
  • The situations presented here are independent of each other.For each situation, prepare the appropriate journal entry for the re
    11·1 answer
  • the temporary difference is $60 million. Payne has no other temporary differences and no valuation allowance for the deferred ta
    12·1 answer
  • This information relates to Blossom Co..
    14·1 answer
  • Sgesergrbrtbtrbtrb rgbrbbteber
    14·2 answers
  • What does a management accountant need to do before he or she can take
    5·1 answer
  • Sheffield Corp. developed the following data for the current year: Beginning work in process inventory $ 216000 Direct materials
    14·1 answer
  • The composition of the Fingroup Fund portfolio is as follows:_________.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!