1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
antoniya [11.8K]
4 years ago
7

Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, a

nd $1,850, respectively. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Business
1 answer:
igor_vitrenko [27]4 years ago
6 0

Answer:

The present value of cash flows is $ 5,292.13  

Explanation:

The present value is today's equivalence of the company's future cash flow discounted using the 7% interest rate as a discount rate.

Formula for pv of a cash flow=cash flow/(1+r)^n

r is the 7% interest rate

n is the relevant year each cash flow relates to

PV=$1,350/(1+7%)^1+$1550/(1+7%)^2+$1550/(1+7%)^3+$1850/(1+7%)^4=

$ 5,292.13  

You might be interested in
For each decision, state whether the company is following a cost leadership or a product differentiation strategy.
Oxana [17]

The strategies the companies are following in each case are;

1)Cost leadership  strategy

2)Product differentiation strategy

3) Product differentiation strategy

4) Cost leadership strategy

<h3>What Is Cost Leadership Strategy? </h3>

Cost leadership is known to be a kind of a business-level methods that is often used by people or by companies who are interested to gain a competitive advantage by acting as the  lowest-cost producer of a product, service, production process, or others.

Therefore,  The strategies the companies are following in each case are;

1)Cost leadership  strategy

2)Product differentiation strategy

3) Product differentiation strategy

4) Cost leadership strategy

Learn more about Cost leadership  strategy from

brainly.com/question/14395542

#SPJ1

4 0
2 years ago
You buy a stock for $30 per share and sell it for $33 after holding it for slightly over a year and collecting a $0.75 per share
telo118 [61]

Answer:

The answer is:  After-tax rate of return = 9.8% .

Explanation:

Please find the calculations which are shown in details as below:

Pre-tax dividend earning is $0.75, Tax rate on ordinary income is 28% => After-tax dividend earning = 0.75 x (1 - 28%) = $0.54;

Pre-tax capitals gain is $3 ( that is, $33 -$30), tax rate on capital gains is 20% => After-tax capital gains = 3 x ( 1 - 20%) = $2.4 ;

=> Total after-tax return =   After-tax capital gains + After-tax dividend earning = 2.4 + 0.54 = $2.94 .

Thus, in percentage term,  after-tax rate of return is 2.94/30 = 9.8%.

4 0
4 years ago
Assume that an adjusting entry was made on November 30, 2018 for earned, but unpaid employee salaries of $260 which represented
marishachu [46]

Answer:

05 Dec Debit salary  650 credit bank 650

if the 30 Nov sales are paid then

Debit wages payable 260 Credit bank 260

Explanation:

to get a day's wage we take 26 /2 = 130

the five days = 130*5 = 650

5 0
4 years ago
If the price level decreases,
Pachacha [2.7K]

Answer:

B. There is a movement down along a stationary money demand curve

Explanation:

Whenever the price level changes there is movement down or up along a stationary money demand curve, in this case because the price level is decreasing there will be a movement down because the demand curve is downward sloping and when price decreases more quantity is demanded so the movement is downwards.

Option A and C are wrong because change in price levels cannot cause the curve to shift right or left. Whenever the curves shift to the right or left it is because of non price reasons.

3 0
4 years ago
What costs are considered “relevant” and which are considered “irrelevant “to a business
Klio2033 [76]

Answer:

Relevant costs are costs that will be affected by a managerial decision. Irrelevant costs are those that will not change in the future when you make one decision versus another.

Explanation:Examples of irrelevant costs are sunk costs, committed costs, or overheads as these cannot be avoided.

4 0
3 years ago
Other questions:
  • Using a LIFO perpetual cost flow, calculate the value of the ending inventory and the cost of goods sold for the month of Novemb
    8·1 answer
  • The value today of the following cash flows is $6,423.71 at an interest rate of 5.8 percent. What is the value of the Year 3 cas
    10·1 answer
  • Maud exchanges a rental house at the beach with an adjusted basis of $225,000 and a fair market value of $200,000 for a rental h
    11·1 answer
  • A person who executes customer orders to buy and sell securities on the floor of the NYSE is called a:
    12·1 answer
  • Fill in the blanks
    13·1 answer
  • When using supply and demand to analyze trade, one can assume that the domestic market being small relative to the world market
    15·1 answer
  • Bonita Industries issues 6800 shares of its $5 par value common stock having a fair value of $30 per share and 9800 shares of it
    10·1 answer
  • Bauerly Co. owned 70% of the voting common stock of Devin Co. During 2017, Devin made frequent sales of inventory to Bauerly. Th
    8·1 answer
  • The net cash flows of Advantage Leasing for the next 3 years are $42,000, $49,000 and $64,000 respectively, after which the grow
    11·1 answer
  • Three primary parts of a business plan​
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!