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makvit [3.9K]
3 years ago
14

If $ 12 comma 000 is invested in a certain business at the start of the​ year, the investor will receive $ 3 comma 600 at the en

d of each of the next four years. What is the present value of this business opportunity if the interest rate is 3​% per​ year? A. $ 2 comma 210
Business
1 answer:
Sliva [168]3 years ago
4 0

Answer:

PV of business opportunity = $1,381.55

Explanation:

<em>The present value of the business opportunity is the difference between the present value of the streams  cash inflow and the initial investment cost </em>

PV of streams of cash inflows:

PV of cash flow =A ×  (1- (1+r)^(-n) )/r

A- 3,600, r- 3%, n- 4

= 3,600 × (1 -(1.03^(-4) )/0.03

=$13,381.55

PV of the business opportunity

= $13,381.55 - 12,000

= $1,381.55

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Answer:

2. second-price, sealed-bid auction.

Explanation:

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Travis bought a share of stock for $31.50, the stock paid a dividend of $0.85, and Travis sold it six months later for $27.65. W
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Answer:

Dollar profit loss = $3

Holding period return = negative 9%

Explanation:

In order to find the dollar profit or loss return we will add the dividend and selling price because that the dividend plus the selling price is the cash that Travis receives or the positive cash and we will subtract the buying price from it because it is the negative cash flow. So we will add all the positive cash flows and subtract negative cash flow from it in order to find the dollar profit loss or return.

Selling price = 27.65

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Dollar profit loss or return = 28.50-31.5=-3

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(27.65+0.85-31.5)/31.5= -0.09 = -9%

Holding period return = negative 9%

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Why the companies need to extend their product life cycle?
just olya [345]

Answer:

because of the product and the correct one is the one of the product is not working properly

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