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notka56 [123]
3 years ago
10

Suppose you will receive $2,000 two years from today (at the end of the second year) and $3,000 five years from today (at the en

d of the fifth year). What is the present value of this stream of cash flows when the interest rate is 6% per year (compounded annually)?
Business
1 answer:
tangare [24]3 years ago
8 0

Answer:

$4,021.77

Explanation:

To solve this question find the present value of each cashflow then sum them up.

<u>PV of 2,000 received at year 2;</u>

Using a financial calculator, input the following;

FV = 2,000

I = 6%

N = 2

PMT = 0

then compute present value; CPT PV = $1,779.99

<u>Next, PV of 3,000 received at year 5;</u>

Using a financial calculator, input the following;

FV = 3,000

I = 6%

N = 5

PMT = 0

then compute present value; CPT PV = $2,241.78

Then sum up the two PVs = $1,779.99 +$2,241.78 = $4,021.77

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If the U.S. capital markets are not informationally efficient, ______.A. the markets cannot be allocationally efficientB. system
Firdavs [7]

Answer:

A. the markets cannot be allocationally efficient

Explanation:

If the U.S. capital markets are not informationally efficient, the markets cannot be allocationally efficient

5 0
3 years ago
TravelLite and FareLine compete as online travel agencies. Historically, TravelLite has focused more on flights, whereas FareLin
DENIUS [597]

Answer:

16.80% and 39.43%

Explanation:

The formula to compute the net profit margin is shown below:

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For Travel lite, the net profit margin is

= $1,080 ÷ $6,430 × 100

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And, for fare line, the net profit margin is

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By dividing the net income or net profit by the total revenues we can get the net profit margin or we can say it is profit percentage that is earned by the company

It is always expressed in percentage

6 0
3 years ago
It becomes particularly urgent for a company to consider diversification when there are needs to avoid putting all of its "eggs"
Lisa [10]
The answer to this question is <span>diminishing market opportunities and stagnating sales in its principal business.
Companies should only consider diversification if the previous product that thye make is already succesful and they have enough capital to pursue another segment of the market. If the sales is still stagnant,  it best to use the capital to reinvest in the current product until the growth is assured. (or even just stop the production for that product and start pursuing another)</span>
8 0
3 years ago
Is my answer correct
xeze [42]
Yes you have the answer right.

i know this because my friend just got sponsored for a basketball career and he used his basketball coach as a personal reference.

Hope this helps :)
Please give brainliest!
7 0
3 years ago
Read 2 more answers
A firm, with an 18% cost of capital, is considering the
mafiozo [28]

Answer:

a. $316,920

Explanation:

The computation of the net present value for Project A is shown below:

The net present value = Cash inflow after considering the discount factor - initial cost or initial investment

Cash inflow after considering the discount factor = $7,400,000

The discount factor for 4 years at 18% = 0.5158

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= $7,400,000 × 0.5158

= $3,816,920

And, the initial investment is $3,500,000

So, the net present value is

= $3,816,920 -  $3,500,000

= $316,920

3 0
3 years ago
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