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
Dafna1 [17]
3 years ago
6

An arithmetic cash flow gradient series equals $600 in year 1, $700 in year 2, and amounts increasing by $100 per year through y

ear 9. At i = 9% per year, determine the present worth of the cash flow series in year 0.
The present worth of the cash flow series in year 0 is $
The question is properly stated and nothing is wrong with it!
Business
1 answer:
Scrat [10]3 years ago
7 0

Answer:

Present value ofthe annuity 6,163.14

Explanation:

We build the schedule of the annuity:

#  Beginning / Installment / Total / Interst / Ending

1                       600 600 1.09      654

2    654         700         1354 1.09     1,475.86

3   1475.86 800 2275.86 1.09    2,480.69

4  2480.69 900 3380.69 1.09    3,684.95

5  3684.95 1000 4684.95 1.09    5,106.6

6  5106.6 1100 6206.6 1.09    6,765.19

7  6765.19 1200 7965.19 1.09    8,682.06

8 8682.06 1300 9982.06 1.09   10,880.45

9 10880.45 1400 12280.45 1.09   13,385.69

Then we discount the future value at 9% to get the present value:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $13,385.6900

time  9.00

rate  0.09000

\frac{13385.69}{(1 + 0.09)^{9} } = PV  

PV   6,163.1435

You might be interested in
Misty and John formed the MJ Partnership. Misty contributed $50,000 of cash in exchange for her 50% interest in the partnership
Pie

Answer:

$78,000

Explanation:

The computation of interest at year end is shown below:-

Interest at year end = Cash contribution + Income of partnership + Share of partnership liabilities - Cash from the partnership

= $50,000 + $20,000 × 50% + $60,000 × 50% - $12,000

= $90,000 + $10,000 + $30,000 - $12,000

= $78,000

Therefore for computing the partnership interest at year end we simply applied the above formula by considering all the items given in the question

4 0
2 years ago
How does an economist calculate GDP for one year using the expenditure approach?
ryzh [129]
An economist calculates the GDP for one year using the expenditure approach by adding together all the amounts spent on final goods and services. This also includes investments, government consumptions and net exports. The answer to the question would be choice A.
6 0
3 years ago
Read 2 more answers
Economist A says all of the following: The economy needs expansionary fiscal policy to remove it from a recessionary gap. Govern
lana [24]

Answer:

The correct answer is:

Government should either raise its <u>expenditures</u> or cut<u> taxes</u>. I believe the government spending multiplier is <u>greater</u> than the tax multiplier, so I favor <u>this policy</u>.

Explanation:

To begin with, an <em>"expansionary fiscal policy" </em>represents the tool that a government has in order to give response to a recessionary context in where the economy is falling down by decreasing its production. That is why, that in this type of policy the actions that are to be taken comprehends the reduction of taxes that the public sector collects from the private sector and also to increase the public expenditures that the government has with the purpose to estimulate the demand and offer of goods.  

4 0
3 years ago
Name three traits of a target audience
timofeeve [1]
It's Gender,Age,<span>Parental Status,and Income Level.

</span>
8 0
3 years ago
Read 2 more answers
Fill in the blanks to complete the sentence. A manufacturing company has budgeted production at 5,000 units for May and 4,400 un
GarryVolchara [31]

Answer:

Direct material purchases in May = 21,670× $10= $216,700

Explanation:

Material purchase budget is determined by adding the closing inventory of material to the material usage budget less the opening inventory.

Material budgets for May will be prepared as follows:

Materials needed for May production = 5,500 × 3 = 16,500

Materials needed for June production = 4,400× 3= 13,200

Closing inventory of raw material in May =60% × June requirement = 60% × 13,200 =7,920

 Material purchase budget for February = Usage budget + closing inventory - opening inventory

= 16,500 + 7,920- 2,750=21,670

Direct material purchases in May = 21,670× $10= $216,700

3 0
2 years ago
Other questions:
  • Nelson Industries warrants its products for one year. The estimated product warranty is 4.3% of sales. Sales were $475,000 for S
    6·1 answer
  • A person who signs a check and leaves the dollar amount for someone else to fill in can recover from the bank whatever amount ex
    7·1 answer
  • Suppose Indiana produces only steel and corn, with fixed amounts of land, labor, and capital resources. Which scenario best sets
    12·1 answer
  • On January 1, 2013, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial stat
    10·1 answer
  • According to the circular flow model of the economy, a person's job in a shoe factory is within the _______ market.
    13·1 answer
  • Which type of rubric contains a rating scale?
    15·2 answers
  • A firm has the following forecast information for sales of Product X: April 15,000 units May 17,000 units June 19,000 units July
    7·2 answers
  • Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate
    6·1 answer
  • When a user sends a reply to a message, what is the user sending
    8·2 answers
  • The Nicor family is planning to purchase a new home 7 years from now. If they have $240,000 now, how much will be available at t
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!