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Aleks [24]
3 years ago
14

You expect to receive a payment of $600 one year from now. Answer the following questions and show your calculations:

Business
1 answer:
m_a_m_a [10]3 years ago
4 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

You expect to receive a payment of $600 one year from now.

A) Discount rate= 6%

We need to use the following formula:

PV= FV/(1+i)^n

PV= 600 / (1.06)= $566.04

B) Discount rate= 7%

PV= 600 / (1.07)= $560.75

C) The future value of a certain cash flow declines when the interest rate (discount rate) increases or "n" (time) increases.

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Environmentalists have continually argued for the use of alternatives to fossil fuels to generate energy. Harnessing wind power
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