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
skelet666 [1.2K]
3 years ago
5

A basketball player is offered the following contract today, Jan. 1, 2012: $2 million immediately, $2.40 million in 2012, $2.90

million in 2013, $3.60 million in 2014, and $3.80 million in 2015. Assume all payments other than the first $2 million are paid at the end of the year. If the appropriate discount rate is 10 percent per year, what is the present value of the deal?
Business
1 answer:
weeeeeb [17]3 years ago
8 0

Answer:

The answer is $11.24 million Explanation:

Using the formula

Present worth = x/(1+R/100)∧n

R = 10%

Year 2012

2.40/(1+10/100)∧1

= 2.40/(1+0.1)∧1

= 2.40/(1.1)∧1

2.40/1.1

= 2.18

Year 2013

2.90/(1+10/100)∧2

= 2.90/(1+0.1)∧2

= 2.90/(1.1)∧2

2.90/1.21

= 2.396

Year 2014

3.60/(1+10/100)∧3

= 3.60/(1+0.1)∧3

= 3.60/(1.1 )∧3

3.60/1.331

= 2.70

Year 2015

To determine the present value

2+3.80/(1+10/100)∧4

= 5.8/(1+0.1)∧4

5.8/(1.1)∧4

5.8/1.4641

= 3.96

Therefore the present value, add together the value from year 1 to year 4

2.18 + 2.396 + 2.70 + 3.96

= 11.236

= 11.24 Approximately

Therefore the present value is $11.24 millions

You might be interested in
Sam and Teresa run a catering business in which they have two major tasks: getting new clients and preparing food for events and
Sergio [31]

Answer:

The number of new clients will increase by

12/3 = 4

Therefore, the number of new clients will increase by 4.

Explanation:

In getting new client, Sam takes 5hours, while Terasa takes 3hours.

In preparing food, Sam takes 10hours while Teresa takes 12hours.

It can be seen that Sam has absolute advantage and comparative advantage in preparation of food, while Tesesa has absolute advantage and comparative advantage in getting new client.

Sam with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and Teresa will use the freed-up time from not preparing food for one event to get more clients.

Teresa will free up 12hours she used in the preparation of food.

Since she use 3hours to get new client, She will get

12/3, which equals 4 number of clients

8 0
3 years ago
An economist would say food stamps, Medicaid, and rent vouchers are ---41---​
Minchanka [31]

Answer:

Dr. Neil would be very disappointed in you.

Explanation:

He just would.

8 0
3 years ago
You are the CEO of a company that has to choose between making a $100 million investment in either Russia or Poland. Both invest
dimulka [17.4K]

Answer: When assessing the risks of investment, one should consider the political, economic, and legal risks of doing business in either Russia or Poland. The risk in Russia would probably be considered higher than the risk in Poland since Poland has been a member state of the European Union since 1 May 2004, with the Treaty of Accession 2003 signed on 16 April 2003 in Athens as the legal basis for Poland's accession to the EU.

Poland has already gained benefits and stability offered by the EU. Russia, by contrast, is still many years away from even being in a position to be considered by the EU for membership.

Explanation: A diligent investor wouldn't put a penny in a risky country.

8 0
3 years ago
A volume-cycled ventilator is in the control mode and the I/E ratio alarm is sounding. Which control adjustment would correct th
Mkey [24]

Answer:

Option "D" is the correct answer for the following.

Increase the flow rate.

Explanation:

The quantity the ventilator provides differs with adjustments in airway pressure, lung performance and ventilation system integrity.

  • Volume-cycled ventilators: Air passes to the patient until a fixed volume is supplied to the ventilator system, even if the airway pressure is very high.
  • Inspiratory: Expiratory ratio applies to the inspiratory period scale: time of expiry. ... This offers a 1:2 I: E ratio, which reads "one to two."
  • In asymmetric, this ratio is typically changed due to the increased expiration time. They could have a ratio of 1:3 or 1:4 to I: E.

4 0
3 years ago
What are the subjects of economics
Irina-Kira [14]

Answer:

Econometrics.

Economic policy.

Legal studies.

Money and banking.

Global finance.

Economic history.

International trade.

Collective decisions.

Explanation:

I believe this is what you are asking for. Hope this is helpful :).

5 0
3 years ago
Other questions:
  • Andrew, a project manager in a multinational company, accepts a very challenging project from his client as he feels that the em
    12·1 answer
  • Your bank account pays a 5% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is
    14·1 answer
  • What is the value today of $4,400 per year, at a discount rate of 8.3 percent, if the first payment is received 6 years from tod
    15·1 answer
  • What is the annual percent change in the striped bass population?
    11·1 answer
  • Suppose that a Treasury coupon security is purchased on April 8 and that the last coupon payment was on February 15. Assume that
    10·1 answer
  • Dane works as a sales representative for the Better Butter Company. He is about to meet with his manager to review his progress
    13·2 answers
  • You have just taken out an installment loan for $100,000. Assume that the loan will be repaid in 12 equal monthly installments o
    8·1 answer
  • In order to find the future worth, F, from a present amount, P, 5 years from now at an interest rate of 6 % per year, compounded
    6·1 answer
  • On January 1 of this year, Ikuta Company issued a bond with a face value of $100,000 and a coupon rate of 5 percent. The bond ma
    5·1 answer
  • Austin Company uses a job order cost accounting system. At the beginning of the year, the company's executives estimated that di
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!