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netineya [11]
3 years ago
7

The following present value factors are provided for use in this problem.

Business
1 answer:
Sati [7]3 years ago
8 0

Answer:

$7,213.40

Explanation:

The computation of the net present value is shown below:

= Present value of all yearly cash inflows after applying discount factor - initial investment

where,  

Initial investment is $50,000

And, the present value till 3 year would be

= Annual cash flows × PVIFA factor for 3 years at 12%

= $18,000 × 2.4018

= $42,232.40

And, the present value for fourth year would be

= Annual cash flows × present value factor

= $22,000 × 0.6355

= $13,981

So, the total present value would be

= $43,232.40 + $13,981

= $57,213.40

Since the annual cash flows are same for the three years so we use the PVIFA table

Refer to the PVIFA table

Now put these values to the above formula

So, the value would be equal to

= $57,213.40 - $50,000

= $7,213.40

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4 0
3 years ago
1. The interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the____________ .
horsena [70]

Answer:

1. Discount rate.

2. Increase.

Explanation:

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Federal Reserve System also known as the Fed, was created under the Federal Reserve Act which was passed by US Congress in 1913. The Fed began its operations in the year 1914. It's a financial institution which was founded by President Woodrow Wilson and was primarily aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.

Furthermore, just like all central banks, the Fed is a government financial institution which is saddled with these responsibilities;

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3. Regulating banking activities: it has the power to supervise and regulate banks.

The Federal Reserve Board is the governing body which essentially manages the Federal Reserve System and performs an oversight function on domestic monetary policies.

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5 0
3 years ago
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Answer:

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market value = $70.75 million

7 0
2 years ago
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