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Lady_Fox [76]
3 years ago
13

An investment will pay $200 at the end of each of the next 3 years, $300 at the end of Year 4, $500 at the end of Year 5, and $8

00 at the end of Year 6. If other investments of equal risk earn 5% annually, what is its present value? Round your answer to the nearest cent. $ 2255.30 What is its future value? Round your answer to the nearest cent. $ 3022.32
Business
1 answer:
pantera1 [17]3 years ago
8 0

Answer:

Present value = $1,780.20

Future value = $2,385.64

Explanation:

Years     Annual cash flows   Discount factor @5%       Present value

1              $200.00                  0.9523809524             $190.48

2             $200.00                  0.9070294785             $181.41

3             $200.00                  0.8638375985              $172.77

4             $300.00                  0.8227024748              $246.81

5             $500.00                  0.7835261665               $391.76

6             $800.00                  0.7462153966               $596.97

Present value                                                         $1,780.20

Now the future value is

Future value = Present value × (1 + interest rate)^number of years

= $1,780.20 × (1 + 0.05)^6

= $1,780.20 × 1.3400956406

= $2,385.64

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As a graphic artist, Randy has just finished a new calendar. The calendar cost him $1.00 for the glossy paper, $3.00 for the six
Yanka [14]

Answer:

Break-even units = 66.67 units

Explanation:

<em>Break-even point is the level of activity that achieves no profit or loss. At this level profit is zero because the the total revenue is equal to total cost.</em>

<em>The break-even point is calculated as </em>

<em>Units to achieve target profit = (Total general fixed cost for the period + target profit)/ contribution per unit</em>

Contribution per unit = Selling Price - Variable cost

Contribution per unit = 15- (1+3+0.50) = 10.5

Fixed cost = 500 +( 50× 4) = 700

So the units requited to achieve break-even point:

Break-even point =  700/10.5

                            = 66.67 units

4 0
3 years ago
Jie consumes three heads of broccoli and six bowls of rice each week. the price of a head of broccoli is $2 and the price of ric
Degger [83]
<span>Jie should not change her consumption of either broccoli or rice for maximization of her utility , as she consumes three heads of broccoli and six bowls of rice each week. the price of a head of broccoli is $2 and the price of rice is $4 per bowl. jie's marginal utility from the last head of broccoli consumed is 4 utils and her marginal utility from her last bowl of rice is 8 utils</span>
4 0
3 years ago
Renaldo and inez are in a stepfamily, and they are committed to having a "good stepfamily." there are several important elements
zimovet [89]

I believe this problem has the following choices:

 

They talk about family problems as they arise.

Renaldo discusses his ex-wife's flaws in front of the children.

Renaldo and Inez make time each week to spend alone together.

The family regularly spends time with other stepfamilies.

The family has enrolled in a course to learn how to avoid problems.

 

From the text, we can conclude that the correct answer is:

 

>Renaldo discusses his ex-wife's flaws in front of the children. 

6 0
3 years ago
Multimarket competition occurs when firms: a. compete against each other in several geographic or product markets. b. sell diffe
Pie

Answer:

A. compete against each other in several geographic or product markets.

Explanation:

Different geographic or product markets often possess different challenges for producers to sell their product. This happen because different cultutres, climate, and social conditions tend to create different needs for the customers.

This is why business experts refers to it as 'multi-market competition'. Even though these companies sell similar product, they require different approach/strategies in order to win over different customers in these markets.

Example for this would be Pepsi and coca cola. They sell similar products world wide, not just in united states. Their competition require them to learn the cultures and customers characteristics from different countries as their target market.

`

4 0
3 years ago
Brad's Diner is expanding and expects operating cash flows of $32,000 a year for 4 years as a result. This expansion requires $3
lawyer [7]

Answer: $57,101.73

Explanation:

First find the present value of the cash inflows. The $32,000 is a constant payment so is an annuity. The net working capital will be realized at the end of the project as well.

Present value of cash inflows = (32,000 * Present value interest factor of an annuity, 4 years, 12%) + 3,000/ (1 + 12%)⁴

= (32,000 * 3.0373) + 1,906.55

= ‭$99,101.73

NPV = Present value of inflows - Outflows

= ‭99,100.15‬ - (39,000 + 3,000)

= $57,101.73

5 0
3 years ago
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