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2 years ago

What is the present value today of $2,300 received two years from now with a rate of return equal to 4%?

Business

1 answer:

Ierofanga [76]2 years ago

6 0

Answer:

present value = $2126.47

Explanation:

given data

future value = $2,300

time t = 2 year

rate of return r = 4%

solution

we get here present value that is express as

future value = present value × $(1+r)^{t}$ ..............1

put here value and we get

$2,300 = present value × $(1+0.04)^{2}$

present value = $\frac{2300}{1.04^2}$

present value = $2126.47

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hichkok12 [17]

Answer:

C) twelve weeks of unpaid family or medical leave during any twelve-month period.

Explanation:

The Family and Medical Leave Act of 1993 provides employees with temporary medical leave when:

their child is born (or they adopt a child) and they must take care of him/her
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2 years ago

Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $11.13 per unit, and the variable labo

dolphi86 [110]

Answer:

Part a. What is the variable cost per unit?

Variable Cost per Unit is $ 11.13+ $ 7.29 = $18.42

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Production for the year is 190000 units

Calculation of Total Production = Variable costs + Fixed Costs

= 190000 units × $18.42 + $875,000

=$ 4,374,800

Part c. If the selling price is $44.99 per unit, does the company break even on a cash basis?

The Company Breaks Even when

Total Sales Revenue = Total Production Costs

Total Sales Revenue = $44.99 × 190000

= $ 8,548,100

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Therefore Company does break even on a cash basis

Part c. If depreciation is $435,000 per year, what is the accounting break-even point?

Total Production Costs = $4,374,800+$435000

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Therefore accounting break-even point is $4,809,800 Sales

Explanation:

Part a. What is the variable cost per unit?

Variable Cost are costs which Vary with the level of Activity.

Part b. What are the total costs for the year?

Calculation of Total Production Costs= Variable costs + Fixed Costs

Part c. If the selling price is $44.99 per unit, does the company break even on a cash basis?

Break-Even Point is the Point when the company neither makes a profit or a loss

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Therefore Company does break even on a cash basis

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2 years ago

An investor purchases a 12-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of in

marysya [2.9K]

Answer:

Value of the bond = $862.013

Explanation:

The value of the bond is the present value of the future cash receipts expected from the bond. The value is equal to present values of interest payment and the redemption value (RV).

Value of Bond = PV of interest + PV of RV

The value of the bond can be worked out as follows:

Step 1

Calculate the PV of Interest payment

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PV = Interest payment × (1- (1+r)^(-n))/r

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Step 2

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= 1000 × (1.05)^(-12×2)

= 310.067

Step 3

Calculate Value of the bond

= 551.94567 + 310.067

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Value of the bond = $862.013

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2 years ago

Wendell’s Donut Shoppe is investigating the purchase of a new $18,600 donut-making machine. The new machine would permit the com

sertanlavr [38]

Answer:

1. Total Annual Cash Inflows = 5000

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Explanation:

Note: the question is incomplete and it lacks essential data to be used in part 4. Without the exhibits mentioned in the questions, it is not possible to solve this question completely. We will be solving it till part 3.

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Answer:

In this we have to calculate the total annual cash inflows and the formula to calculate it is mentioned below:

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2. What discount factor should be used to compute the new machine’s internal rate of return?

Answer:

Formula to calculate the Discount factor:

Discount Factor = Price of new machine/ annual cash inflow

Price of new machine = 18600 USD

Annual cash inflow = 5000

Discount Factor = 18600 /5000

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3. What is the new machine’s internal rate of return?

Answer:

As, it can be seen from the exhibits (which are missing from this question) that the discount factor for 6 years is nearly closest to 16%, hence the new machine's internal rate of return = 16%

Note: the question is incomplete and it lacks essential data to be used in part 4. without the exhibits mentioned in the questions. It is impossible to solve further.

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2 years ago

What do you think is meant by the phrase "both alien and non-alien"?

serious [3.7K]

I believe it meant both alien immigrants and non-alien immigrants? Is this the correct context, immigration? Or, does it mean extra-terrestrial life? I would need to see context to know for sure, but I believe it is referencing immigration.

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2 years ago