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Gnom [1K]
4 years ago
12

What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is received 7 years from now and

you receive a total of 23 annual payments
Business
1 answer:
ioda4 years ago
8 0

Answer:

P V = 1669,5

Explanation:

After seven years, future payment will be 9800$ and from there on we will have 23 annual payments more:

P V = 9800/(1+0.08)^23 = 9800/5,87 = 1669,5

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I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is
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Answer:

$15,000

Explanation:

Value of a perpetuality = cash flow / r

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

4 + 0 (10 - 4) = 4

1,000/ 0.04 = 25,000

4 + 1 (10 - 4) = 10

1000 / 0.1 = 10,000

25,000 - 10,000 = 15,000

8 0
3 years ago
In deciding how many hours to work, Beulah will make a choice that maximizes her _______; that is, she will choose according to
fenix001 [56]

Answer:

In deciding how many hours to work, Beulah will make a choice that maximizes her utility; that is, she will choose according to her preferences for leisure time and income.

Explanation:

People obtain utility from products they purchase and they also obtain utility from leisure time (leisure time is the time not spent at work). Generally, for people with low wages react to a higher wage by supplying a greater quantity of labor but for higher wages people who can earn so much that respond to a still-higher wage by working fewer hours.

8 0
3 years ago
Pedro sells port wine for $32 per bottle. His fixed costs are $769. Variable costs are $15 per bottle. Lori approaches Pedro abo
Dvinal [7]

Answer:

$17

Explanation:

Calculation for that minimum price

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Less Variable costs ($15 per bottle)

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($32-$15)

Therefore that minimum price is $17

8 0
3 years ago
You are a leader in a paper manufacturer that has recently been charged with using too many trees and polluting groundwater arou
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I am a leader in a paper manufacturer. Some of the ways that my firm can interface with the natural environment in a win-win situation is to develop a good reforestation program. First, I will have my employees plant and take care of trees. Second, I will adapt a waste treatment that will allow my discharge to be fit for irrigation and my solid waste to be used as fertilizer.
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3 years ago
With double-digit annual percentage increases in the cost of health insurance, more and more workers are likely to lack health i
pochemuha

Answer:

See attached files

Explanation:

3 0
4 years ago
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