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adoni [48]
4 years ago
10

An investment pays you $30,000 at the end of this year, and $15,000 at the end of each of the four following years. What is the

present value (PV) of this investment, given that the interest rate is 5% per year
Business
1 answer:
Stella [2.4K]4 years ago
8 0

Answer:

Present value of the cashflow discounted at 5% per year 76,815.65

Explanation:

First, we calculate the present value of the 4 years 15,000 dollar annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 15,000.00

time 4

rate 0.05

15000 \times \frac{1-(1+0.05)^{-4} }{0.05} = PV\\

PV $53,189.2576

Now, we discount two more year as lump sum as this is two year after the invesmtent:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  53,189.26

time  2.00

rate  0.05000

\frac{53189.2575624354}{(1 + 0.05)^{2} } = PV  

PV   48,244.2245

Finally we also discount the 30,000 by one year

30,000 / 1.05 = 28571.43

<em><u>We add up both to get the present value:</u></em>

48,244.22 + 28,571.43 =  76,815.65  

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Artemon [7]

Answer:

$9,911 Unfavorable

Explanation:

Calculation for What is the variable overhead rate variance for the month

First step is to calculate the Standard labor hours Using this formula

Standard labor hours = Actual output x Standard hours per unit of output

Let plug in the formula

Standard labor hours= 1500 x 5.30

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Now let calculate the Variable overhead efficiency variance using this formula

Variable overhead efficiency variance = Actual labor hours - Standard labor hours) x hourly rate for standard variable overhead

Let plug in the formula

Variable overhead efficiency variance= ( 8,800-7,950) x 11.66

Variable overhead efficiency variance=850×11.66

Variable overhead efficiency variance= $9,911 Unfavorable

Therefore the variable overhead rate variance for the month is $9,911 Unfavorable

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3 years ago
A company producing cosmetics may have hundreds of suppliers, some of which may be selling the same or similar raw and packaging
Ber [7]

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7 0
1 year ago
For most people, the purchase of a Ford automobile would employ which type of consumer decision making? a.Generic decision makin
sashaice [31]

Answer:

1. B

2. E

Explanation:

1. Consumer or buyers use the extended decision making as it is that decision making which involves high level of the purchase involvement, extensive internal and the extensive information search with complex evaluation of the alternatives. In case of automobiles, buyers will choose the extended decision making as it is expensive, infrequently purchased products.

2. As there is involvement of high risk of financial loss in the future purchasing power, for people or consumer, the automobiles have the situational involvement, it is the short term state which directs towards the attaching relevance of a situation or person. In other words, it is an state where, it establish a level of involvement when a consumer or person think of a specific situation or object.

8 0
4 years ago
What happens to a monopolistically competitive firm that begins to charge an excessive price for its product?.
Nutka1998 [239]
What happens to a monopolistically competitive firm that begins to charge an excessive price for its product? The firm will go out of business.
4 0
2 years ago
Currently Baldwin is paying a dividend of $1.10 (per share). If this dividend stayed the same, but the stock price rose by 10% w
Flauer [41]

Answer:

Dividend yield = 227.06%

Explanation:

Assuming the Closing stock market summary for Baldwin company is $44.05

Dividend yield = Dividend * 100 / (Price* (1 + growth rate) )

Dividend yield = 1.10 * 100 / (44.05 * (1+0.10) )

Dividend yield = 1.10 * 100 / (44.05 * 1.10)

Dividend yield = 110 / 48.455

Dividend yield = 2.2706

Dividend yield = 227.06%

4 0
4 years ago
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