1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
____ [38]
3 years ago
14

You require an 8% annual return on all investments. You will receive $1,000, $2,000, and $3,000 respectively for the next three

years (end of year) on a particular investment. What is the most you would be willing to pay for this investment
Business
2 answers:
Naily [24]3 years ago
8 0

Answer:

I will pay $5,022 for this Investment.

Explanation:

The value of the investment can be determined by calculating the present value of all the relevant cash flows of the investment.

use Following formula:

Pv = Fv / (1+r)^n

PV of year 1 Cash flow = $1,000 x ( 1 + 0.08 )^1 = $926

PV of year 2 Cash flow = $2,000 x ( 1 + 0.08 )^2 = $1,715

PV of year 3 Cash flow = $3,000 x ( 1 + 0.08 )^3 = $2,381

Total Value of Investment = $926 + $1,715 + $2,381 = $5,022

I will pay $5,022 for this Investment.

Fynjy0 [20]3 years ago
3 0

Answer:

$5,026

Explanation:

                           Year 1                 Year 2         Year 3

Cash flows          1,000                  2,000          3,000

Discount factor    1/1.08                1/(1.08)^2           1/(1.08)^3

Discount Factor= .93                    .86                   .79

Cash flows*discount factor

                             1000*.93           2000*.86         3000*.79

Net present value of cash flows

                             930                    1,715                  2,381

930+1715+2381=5,026 is the maximum amount one can pay for this investment

You might be interested in
Lusk Corporation produces and sells 15,800 units of Product X each month.
earnstyle [38]

Answer:

a. decrease by $58,800 per month

Explanation:

The computation is shown below;

<u> Particulars                                 Amount </u>

Contribution from product X   $94,800 ($28 - $22) × 15,800 units

Less: Fixed cost                        -$108,000

Net loss avoided                        -$13,200

Non-avoidable fixed cost            $72,000

The Total cost in case the product fall $58,800

Hence, the correct option is a.

5 0
3 years ago
Criticism is hurtful because it makes one feel as if _______.
bija089 [108]

Answer:

a

Explanation:

they may feel like this because they're being talked about or like they're doing something wrong

5 0
3 years ago
Activity based costing _____________
Ilia_Sergeevich [38]

Answer:

1. groups costs into meaningful buckets that are then distributed based on the activity or product they support.

Explanation:

Activity based costing basically categorizes various overheads into different activities, that leads to charge of overheads based on different activities.

In this manner overheads that shall be charged on some standard products based on the activities involved is charged accordingly, and not based on standard overhead allocation rate.

Basically the overheads are divided into various activities and then distributed  to each product based on the volume of activity in the manufacturing process of such activity.

7 0
3 years ago
Assume Argentina has production possibilities to produce either 35 batches of apples or 70 batches of peaches using 100 worker h
konstantin123 [22]

Answer:

40

Explanation:

Batches of apples produced in one hour = 35/100 = 0.35

Batches of peaches produced in one hour = 70/100 = 0.70

total hours it would take to produce 15 batches of apples = 15 / 0.35 = 42.86 =  43 hours

this would leave (100 - 43) 57 hours to make peaches

Batches of peaches that can be made in 43 hours = 57 x 0.7 = 39.9 = 40 batches

7 0
3 years ago
Explain a situation where user would transpose data on a spreadsheet in Microsoft Excel. Give at least one example to illustrate
GuDViN [60]

Answer:

You can do this by copying, pasting, and using the Transpose option. But doing that creates duplicated data. If you don't want that, you can type a formula instead using the TRANSPOSE function. For example, in the following picture the formula =TRANSPOSE(A1:B4) takes the cells A1 through B4 and arranges them horizontally.

Step 1: Select blank cells

First select some blank cells. But make sure to select the same number of cells as the original set of cells, but in the other direction. For example, there are 8 cells here that are arranged vertically:

Cells in A1:B4

So, we need to select eight horizontal cells, like this:

Cells A6:D7 selected

This is where the new, transposed cells will end up.

Step 2: Type =TRANSPOSE(

With those blank cells still selected, type: =TRANSPOSE(

Excel will look similar to this:

=TRANSPOSE(

Notice that the eight cells are still selected even though we have started typing a formula.

Step 3: Type the range of the original cells.

Now type the range of the cells you want to transpose. In this example, we want to transpose cells from A1 to B4. So the formula for this example would be: =TRANSPOSE(A1:B4) -- but don't press ENTER yet! Just stop typing, and go to the next step.

Excel will look similar to this:

=TRANSPOSE(A1:B4)

Step 4: Finally, press CTRL+SHIFT+ENTER

Now press CTRL+SHIFT+ENTER. Why? Because the TRANSPOSE function is only used in array formulas, and that's how you finish an array formula. An array formula, in short, is a formula that gets applied to more than one cell. Because you selected more than one cell in step 1 (you did, didn't you?), the formula will get applied to more than one cell. Here's the result after pressing CTRL+SHIFT+ENTER:

6 0
2 years ago
Other questions:
  • An individual actually earned a 4 percent nominal return last year. Prices went up by 3 percent over the year. Given that the in
    9·1 answer
  • 5. Many tax professionals and advisors recommend adjusting your W-4 allowances so that...
    14·2 answers
  • Pro forma income statement
    6·1 answer
  • What are some characteristics of physical mental and emotional and social health
    12·1 answer
  • A company either performs a service, sells inventory that it purchases from others, or manufacturers a product; it cannot serve
    13·1 answer
  • The Fed's control over interest rates, quantitative easing, and direct lending to financial institutions are some of the tools o
    8·1 answer
  • -Provide public goods
    13·2 answers
  • ​the ___________________ section of the marketing plan supplies information about the company's current situation with respect t
    8·1 answer
  • The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and buildi
    5·1 answer
  • Why might a company invest in another​ company? A. To ensure a steady supply of raw materials if the company being purchased is
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!