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zvonat [6]
3 years ago
11

You just won the magazine sweepstakes and opted to take unending payments. The first payment will be $21,500 and will be paid on

e year from today. Every year thereafter, the payments will increase by 2.5 percent annually. What is the present value of your prize at a discount rate of 7.9 percent?
Business
1 answer:
olga nikolaevna [1]3 years ago
7 0

Answer:

present value = $398148.15

Explanation:

payment = $21,500

payments increase = 2.5 %

discount rate = 7.9 %

to find out

present value of your prize

solution

present value of prize is express as

present value = \frac{payment}{discount rate-payment increase}

put here value

present value = \frac{21500}{0.079-0.025}

present value = $398148.15

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On April 30, 2015, Zono Electronics, Inc. made a payment of $3,500 to Imperial Distributors, a supplier. Choose the statement th
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Answer:

A) Debit cash, credit accounts receivable

Explanation:

As the statement said, Zoono electronics made a payment which means they are debiting cash amount of $3,500 to imperial distributor who is a supplier. So the best statement that best describes the recording of this financial transaction by imperial distributor is their account receivable has been credited and cash is debited. All the other options are wrong except this.

3 0
3 years ago
A company is trying to decide between two independent projects. Each project has a cost of capital of 12%. Project A has an IRR
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Answer:

Neither project should be chosen

Explanation:

Given that

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Therefore the above statement represent an answer

The same should be relevant

6 0
3 years ago
Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage and that
almond37 [142]

Answer:

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3 0
2 years ago
The Nearside Co. just paid a dividend of $1.20 per share on its stock. The dividends are expected to grow at a constant rate of
masha68 [24]

Answer and Explanation:

The computation is shown below:

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= $20.80 × (1.04)^10

= $30.79

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6 0
3 years ago
Which of the following are examples of reportable incidents? choose all that apply
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a healthcare provider failing to respond to a patient’s alarm

a malfunctioning heart monitor

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