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
Lerok [7]
3 years ago
5

An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $6

00 at the end of Year 6. If other investments of equal risk earn 11% annually, what is its present value
Business
1 answer:
Allushta [10]3 years ago
3 0

Answer:

$874.90

Explanation:

we can calculate this using an excel spreadsheet or by hand:

cash flow 1       $100                           discount rate = 11%

cash flow 2      $100

cash flow 3      $100

cash flow 4      $200

cash flow 5      $300

cash flow 6      $600

by hand = ($100 / 1.11) + ($100 / 1.11²) + ($100 / 1.11³) + ($200 / 1.11⁴) + ($300 / 1.11⁵) + ($600 / 1.11⁶) = $90.09 + $81.16 + $73.12 + $131.75 + $178.04 + $320.74 = $874.90

using excel and the NPV function = $874.94

You might be interested in
In order to qualify as substantial performance, the party who fails to perform perfectly must perform . failure to comply with t
ValentinkaMS [17]

Answer:

After observing the question, there are blank spaces to fill in the question. These blank spaces are to be filled with the right answers. Since it was not shown in the question, I will write out the question again and appropriately add the answers for proper understanding. I hope it helps.

In order to qualify as substantial performance, the party who fails to perform perfectly must perform <u>in good faith</u>. <u>Intentional</u> failure to comply with the contract terms is a <u>breach</u> of the contract. The performance must not vary greatly from the promised performance: an omission, variance or defect in performance is considered <u>minor</u> if it can be <u>remedied</u> by compensation. finally, the performance must create substantially the same <u>benefits</u> as those promised in the contract.

4 0
3 years ago
Brittany has the right when her child is born to take one full year of leave with two-thirds of her pay, and there is substantia
Mrrafil [7]
It is likely that Brittany lives in SWEDEN, DENMARK OR NORWAY. These three countries have generous offers for pregnant women and new parents. Their system is generally flexible and new moms can decide to go for long periods with shorter pay or shorter periods with full pay depending on individual choice and their family circumstances.
3 0
3 years ago
A 6-year bond, 8% semiannual coupon bond sells at par ($1,000). Another bond of equal risk, maturity, and par value pays an 8% a
timofeeve [1]

Answer:

Explanation:

  • The bond has 8% coupon paid semiannually, and those bonds sell at their par value.
  • Since the bond sales at par value, Market rate (Yield) = Coupon rate =8%

<u>Second bond:</u>

  • Coupon rate = 8%
  • Par value = $1,000
  • Semiannual coupon amount = 1000 x 8%/2 = $40
  • Time to maturity = 6 years = 12 semiannual periods
  • Semiannual Yield = 8%/2 = 4%

To get price of this bond we will use PV function of excel:

= PV (rate, nper, pmt, fv, type)

= PV (4%, 12, -40, -1000, 0)

= $1053.32

  • Price of this bond = $1,053.3
7 0
3 years ago
Read 2 more answers
Thomlin Company forecasts that total overhead for the current year will be $11,742,000 with 164,000 total machine hours. Year to
Basile [38]

Answer:

d.$72 per machine hour

Explanation:

Predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activity

therefore,

Predetermined overhead rate = $11,742,000  ÷ 164,000

                                                  = $71.598 or $72

The predetermined overhead rate based on machine hours is $72 per machine hour.

3 0
3 years ago
What happened to anyone who could not keep up with the march?
miskamm [114]
The Nazi soldiers were given order to shoot anyone who could not keep up with the march. Those who escape shooting would probably be trampled upon by the moving multitude. <span />
3 0
3 years ago
Other questions:
  • A spreadsheet is
    12·1 answer
  • Two mutually exclusive investment opportunities require an initial investment of $7 million. Investment A pays $1.5 million per
    5·1 answer
  • Suppose the Federal Reserve increases bank reserves and banks lend out some of these reserves, but at some point banks still hav
    6·1 answer
  • Maria wants to be a teacher when she graduates from college and hopes to marry another teacher so they can get their summers off
    9·2 answers
  • Baxter Company produces​ children's wiffle ball sets using a threeminusstep sequential process that includes​ molding, coloring
    8·1 answer
  • A Japanese auto company recognized the quality of air-conditioning systems that a U.S. company in Indiana successfully manufactu
    8·1 answer
  • The short run is defined as A. a period of time of five years or less. B. the period of time in which all factors of production
    15·1 answer
  • Why should you avoid the use of sarcasm , cliches, and idioms in business letters?
    11·1 answer
  • P&amp;G sells cosmetics, laundry detergent, and products like Pringles to the ________ market by establishing strong brand image
    14·1 answer
  • There are many buyers and sellers in the market for trumpets.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!