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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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2 years ago
Solve the simultaneous equation <br>y+x=4<br>2y-x=5​
beks73 [17]

Answer:

<h2>Value of X = 1</h2>

<h2>Value of y = 3</h2>

Solution,

Using substitution method,

y + x = 4

Move 'x' to the left hand side and change its sign:

y = 4 - x --------> equation (i)

Now,

2y - X = 5

putting the value of y from equation (i)

2( 4 - x ) - X = 5

8 - 2x - x = 5

8 - 3x = 5

- 3x = 5 - 8

- 3x = - 3

The difference sign (-) will be cancelled in both sides

3x = 3

3x/3 = 3/3

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Value of X is 1

Now, replacing the value of X in equation (i)

y = 4 - x

= 4 - 1

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Value of y is 3

Hope this helps...

Good luck on your assignment...

6 0
3 years ago
Which person is most creditworthy? <br><br> A. Nancy <br> B. Sylvia <br> C. Fiona <br> D. Uli
pav-90 [236]
Fionna is the answer
8 0
3 years ago
Read 2 more answers
What is the main source of diseconomies of scale? A Physical capital breaking more often with large output levels B Specializati
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Answer:

C. Limited ability to manage and coordinate larger amounts of inputs.

Explanation:

Diseconomies of scale: It is a situation when the average cost of production decreases as the output increases due to increase in the size of the organization and it become difficult and costly to coordinate or manage worker or other inputs. It also causes diminishing marginal product in the long run. It is opposite of economies of scale. Diseconomies arise due to use of unskilled laborer and outdated technologies for production.

5 0
3 years ago
Jordan plans to add a porch to her house. The new 16' 18' porch will cost an average of $27 por square foot. Jorden also plans t
tatiyna

Question is incomplete as the cost of the sidewalk is not given :

Assume the sidewalk cost an additional $6 per foot. ​

Answer:

$8366

Explanation:

Given that :

Size of porch = 16 by 18 feets

Area of porch = (16 * 18) = 288 ft²

Cost per ft² = $27

Cost of porch = ($27 * 288) = $7,776

Sidewalk = 15feets

Cost per foot = $6

Cost of sidewalk = ($6 * 15) = $90

Cost of gate = $500

Total cost :

(cost of porch area + side walk + gate)

($7776 + $90 + $500) = $8366

Kindly note that the cost pwr foot of sidewalk was erroneously excluded and the value employed for the cost was only assumed.

7 0
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