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
tekilochka [14]
2 years ago
5

Wainright Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 850 2 1,190 3 1,450 4 1,600

If the discount rate is 7 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Business
1 answer:
Mashutka [201]2 years ago
8 0

Answer:

 $4,238.05  

Explanation:

The computation of the present value is shown below:

Years  Cash flows   Discount factor @7%         Present value

1           $850.00  0.9345794393              $794.39  

2          $1,190.00  0.8734387283              $1,039.39  

3           $1,450.00  0.8162978769              $1,183.63  

4           $1,600.00  0.762895212              $1,220.63  

Total present value                               $4,238.05  

You might be interested in
"A bond that was originally sold at par is now trading in the market at a premium. The bond is called at par. This action will b
AleksandrR [38]

Answer:  a. Issuer

Explanation:

When bonds trade at a premium, it means that the yield has fallen below the coupon rate which means that interest rates have dropped. Companies can take advantage of this to reissue new bonds at the lower interest rate so that they can save on costs.

Bonds usually have a call provision which would enable the issuer to call the bond in and pay the holder at the par value plus interest repayments at the lower yield which they will do in this case. They will then reissue new bonds at a lower rate.

3 0
3 years ago
Annalise received financial aid offers from two universities.
natima [27]

Answer:

Option A will save her $15,500.

Explanation:

Financial aid is the assistance given to students to cater to a college education. It excludes Scholarships and grants as these are not cost items by other forms of assistance.

<u>Total for University Option A</u> excluding scholarships and grants

Tuition & Fees $10,000

Room and Board $11,500

Work-Study  <u>$ 4,000 </u>

Total for A  <u>$25,500</u>

<u>For university option B</u>

Tuition & Fees  $28,000  

Room & Board $ 9,000

Work-study  <u>$ 4,000</u>

Total for B  <u>$41,000</u>

Option B is more costly than A by :$41,000 - $25,500=$15,500.

Therefore, Option A saves $15,500

5 0
2 years ago
Read 2 more answers
Yojayna works for a manufacturing company. She meets with her boss once a week to review how well the company is meeting the tac
anygoal [31]

Answer:

She is a middle manager

Explanation:

As for the details provided,

Yojayna has a senior manager, to whom she meets once in every week to discuss the plan, and the achievements so far.

Thus, she is not the top most manager.

Further, she coordinates with supervisors who regulate the operations of employees on daily basis.

Thus, she is a manager to them.

Therefore, she is a middle level manager. Who works according to senior management, and then regulates the work of supervisors also.

8 0
3 years ago
Which describes the difference between simple and compound interest?
soldier1979 [14.2K]

Answer:

Simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interest that accumulates on it in every period. Since simple interest is calculated only on the principal amount of a loan or deposit, it's easier to determine than compound interest

Explanation:

3 0
3 years ago
Read 2 more answers
An animator needs a laptop for audio/video editing, and notices that he can pay $2600 for a Dell XPS laptop, or lease from the m
Goshia [24]

Answer:

Cost of leasing over buying is $144.59

Explanation:

For computing the cost of leasing the laptop over buying it outright, we have to calculate the present value is shown below:

Given that,  

Future value = $0

Rate of interest = 14%  ÷ 12 months = 1.17%

NPER = 4 years  × 12 month = 48 months

PMT = $75

The formula is shown below:

= PV(Rate;NPER;-PMT;FV;type)

So, after solving this, the present value is $2,744.59

And, the buying amount is $2,600

So, the difference is

= $2,744.59 - $2,600

= $144.59

3 0
3 years ago
Other questions:
  • In strategic planning, managers consider the organization as a total unit and ask themselves what must be done in the long term,
    7·1 answer
  • Assume that the following data characterize a hypothetical economy: money supply $200 billion; quantity of money demanded for tr
    5·1 answer
  • True or False
    6·2 answers
  • Assume a firm has earnings before depreciation and taxes of $620,000 and no depreciation. It is in a 40 percent tax bracket.
    11·1 answer
  • Complete the sentence. As _____ increases, specialization increases as well
    15·2 answers
  • In an econometric model, the dependent variable is Group of answer choices unrelated to the independent variables. the behavior
    12·1 answer
  • If a firm earns $9,000 in long-run, then what type of market structure does this firm belong to?
    14·1 answer
  • . What type of company would you like to create? Why would you like to create this type of company?
    11·1 answer
  • Slippery Slopes promised to arrange for a licensed California contractor to "work with" Water Slides Designs on the construction
    12·1 answer
  • Which transfer of ownership would not be excluded from property tax reappraisal?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!