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3 years ago

What amount needs to be invested today at 6% simple interest in order to have $4000 in 2 years?

1 answer:

4 0

Data:
A (amount) = ?
P (Principal) = $ 4000
r (rate) = 6% → 0.06
t (time) = 2 years

Formula:
$A = P(1+r*t)$

Solving:
$A = P(1+r*t)$
$A = 4000(1+0.06*2)$
$A = 4000(1+0.12)$
$A = 4000*1.12$
$\boxed{\boxed{A = \$\:4480}}\end{array}}\qquad\quad\checkmark$

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Net present value LO P3 Beyer Company is considering the purchase of an asset for $250,000. It is expected to produce the follow

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Answer:

$20,996.49

Yes

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be found using a financial calculator.

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Cash flow in year 1 = $83,000

Cash flow in year 2 = $43,000

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The company should accept the project because the NPV is postive.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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3 years ago

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Answer:

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