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scoundrel [369]
3 years ago
7

April Stigum will receive a 6 year annuity of $2,000 per year, beginning 7 years from today. In other words, the first payment w

ill be made at the end of year 7. Assuming a required rate of return of 10%, calculate the present value today of her annuity. (Enter a positive value and round to 2 decimals
Business
1 answer:
melomori [17]3 years ago
8 0

Answer:

The present value today of her annuity=$4,469.87

Explanation:

Step 1 find An

An=R[1-(1+i)^-n] : i

An=(2000[1-(1+0.10)^-6]) :0.10

An=$8,710.52

Step 2 find Present value today

An=S

P=S(1+i)^-n

P=8,710.52(1+0.10)^-7

P=$4,469.87

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Munster Company reports the following net cash in its statement of cash flows: net inflow from operating activities: $200; net o
Murrr4er [49]

Answer:

$170

Explanation:

Given the following information about Munster company:

Net inflow from operating ACTIVITIES = $200

Net outflow from investing ACTIVITIES =  $300

Net outflow from financing ACTIVITIES = $50

Ending balance in cash = $20

BEGINNING BALANCE :

Outflows + ending balance - inflow

(Outflow from investing ACTIVITIES + outflow from financing ACTIVITIES + ending balance in cash) - inflow from operating activities

($300 + $50 + $20) - $200

$370 - $200

= $170

3 0
3 years ago
What is a price ceiling?why would a price ceiling be put at good service
Misha Larkins [42]
A price ceiling is when a government decides what the maximum price for a certain commodity or a product can be. It can be put to good use if the people are poor and cannot purchase a necessary product such as flour or water or similar. Then the government can help them procure it with a price ceiling.
5 0
3 years ago
Read 2 more answers
Although you may know William Shakespeare from his classic literature, what is not well-known if that he was an astute investor.
coldgirl [10]

Answer:

oh shot man idk

Explanation:

3 0
3 years ago
Which of the following reasons does not contribute to a higher level of unemployment?
Mandarinka [93]
Hi there!

The answer is A) A lack of labor mobility as people choose to remain in their hometown. 

Unemployment is a complex issue, here are the reasons why the other options increase unemployment:

-Reduction in Union bargaining activities would increase unemployment because employers wouldn't have as many restrictions to reduce their workforce. 

-Reduction in economic activity due to a recession would increase unemployment as the demand for products, and for workers too, will decrease.

-The existence of efficiency wages causes unemployment because the demand for labor will decrease, as employees get more and more efficient. 

<span>A lack of labor mobility as people choose to remain in their hometown will not contribute to a higher level of unemployment. Instead, labor mobility can increase unemployment because there would be an oversupply of labor in a specific region. </span>
7 0
3 years ago
has excess cash of​ $15,000 at the end of the harvesting season. will need this cash in four months for normal operations. Requi
kolezko [41]

Answer:

1)

Some of the major reasons why Garden Haven might to choose to either  invest in debt or equity securities are as follows;

  • They want to generate earnings. It is better to earn money from excess cash than keep it idle.
  • They invest in debt or securities because they provide liquidity. Investments in debt or securities can be sold through exchange the day decision is taken to see and convert it cash .
  • To meet cyclical cash needs.
  • They may have policies as regard to quantum of cash that can be kept .

2)

In terms of classification, Garden Haven's investment falls in short term investments.

Investments made for a period less than a year are classified as short term investments. Investments made for longer than one year are classified as long term investments. Since Garden Haven is making this investment for four months, this is be classified as short term investment.

8 0
3 years ago
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