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fredd [130]
3 years ago
8

Flaherty is considering an investment that, if paid for immediately, is expected to return $146,000 five years from now. If Flah

erty demands a 15% return, how much is she willing to pay for this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PV factor to 4 decimals.)
Business
1 answer:
RSB [31]3 years ago
4 0

Answer:

PV= $72,587.80

Explanation:

Giving the following information:

Flaherty is considering an investment that, if paid for immediately, is expected to return $146,000 five years from now.

<u>To calculate the present worth, we need to use the following formula:</u>

PV= FV/(1+i)^n

FV= $146,000

Interest rate= 15% = 0.15

Number of periods= 5

PV= 146,000 / (1.015^5)

PV= $72,587.80

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7 0
2 years ago
In February 2018, Brilliant Industries purchased the Topaz Mine at a cost of $10,000,000. The mine is estimated to contain 500,0
morpeh [17]

Answer:

B. Depletion will be $950,000 during  2018

Explanation:

Cost           $10,000,000

Residual Value ($500,000)

Cost to be depleted $9,500,000

No. of Carats to be extracted over the life of mine 500,000

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3 years ago
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8 0
2 years ago
A producer of fixed proportion goods X and Y (Q = Qx = Qy) has marginal costs and revenues of MC = 10 Q, MRX = 150 - 6 QX, MRy =
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Answer:

a. Qx =9, Qy=9

Explanation:

As per the given data

Q = QX = QY

MRX = 150 - 6QX = 150 - 6Q

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MC = 10Q

Now calculate the Marginal revenue as follow

MR = MRX + MRY

MR = 150 - 6Q + 30 - 4Q

MR = 150 + 30 - 6Q - 4Q

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The Equilibrium of the producer will be

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180 - 10Q = 10Q

180 = 10Q + 10Q

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Q = 180 / 20

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As we know

Q = Qx = QY

Hence, the value of Qx  and QY is 9

7 0
3 years ago
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