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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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Natali [406]

Defined by Miles as "a requirement of the activities of one subunit that is affected by the activities of other subunits" is a <u>contingency</u>.

According to the contingency theory of management, situational circumstances can have an impact on the relationships between dependent and independent variables at work, which will have an effect on employee behavior, effectiveness, and behavior at work in general. Also known as the situational approach to management, this idea.

It is crucial to take into account the particular contingency factors that apply to each business in order to assess organizational data effectively and increase employee engagement. A need for one component's operations that affects those of another subunit is known as a contingency.

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1 year ago
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