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
loris [4]
3 years ago
14

alculate the difference between the present value of $200 per year cash payments for the next 40 years and the present value of

$200 per year cash payments in perpetuity. Assume in either case, the first payment occurs one year from today and that the appropriate discount rate is 8%/year. The difference in the present value of these two streams of future cash payments that you calculated equals the present value of cash payments over what period of time?
Business
1 answer:
Pani-rosa [81]3 years ago
8 0

Answer:

Present value of annuity = PV(8%,40,-200,0,0)

Present value of annuity = $2,384.93

Present value of Perpetuity = 200/ 8%

Present value of Perpetuity = 200 / 0.08

Present value of Perpetuity = 2500

The difference between the Present value = $2,500 - $2,384.93 = $115.07

However, both does not equal as time value has to be considered.

You might be interested in
Our financial decisions decrease once we reach adulthood true or false
Burka [1]

That statement is false. Your financial decision will not decrease when you have become an adult,

4 0
3 years ago
Read 2 more answers
Principals that manage an llc owe its members __________.
Whitepunk [10]

Answer:

Principals that manage an llc owe its members the duty of care.

Explanation:

The duty of care is a legal responsability that the manager has to be careful when performing any action that can cause damage to the members of an LLC. When the manager is not reasonably careful and cause any harm, it be considered negligence and this can have serious legal implications.

5 0
3 years ago
Given a normal market demand curve for unleaded gasoline, if the price of shipping a gallon of gasoline rises from $.50 per gall
Bingel [31]

Answer:

d. decrease in quantity demanded of unleaded gasoline.

Explanation:

Since the shipping cost of a gallon of gasoline is increased from $0.50 per gallon to $0.75 per gallon that reflect the increase in price

As the price is increased, the quantity demanded of unleaded gasoline is decreases as the shipping cost increases which affect the other factors

So, at one time the price increases with the decreases in the quantity demanded

6 0
3 years ago
which three activities are part of the function of accounting? multiple select question. interpreting financial transactions pla
Elodia [21]

The three activities that are part of the function of accounting from the list of given options are:

  • 2. classifying financial transactions
  • 4. interpreting financial transactions
  • 5. recording financial transactions

<h3>What is Accounting?</h3>

This refers to the term that is used to describe the process of recording financial transactions and also classifying them into proper categories for record purposes.

Hence, it can be seen that from the list of answer choices, when it comes to the area of accounting, three core functions from the list are given above and one of them is classifying financial transactions

Read more about accounting here:

brainly.com/question/1033546

#SPJ1

6 0
1 year ago
What do you think an investor would be most interested in knowing about the financials of your company? Why do you think that is
salantis [7]

Before making an investment, investors look at a company's financial accounts because they believe that bigger profit margins will result in a better return. The company's reputation encourages investors to make risk-free investments with ease.

What is investing?

Buying an asset or thing in the future with the expectation that it will produce income or increase in value is referred to as "investing."

Investors value financial statements because they contain a wealth of information about a company's balance sheet, income statement, and cash flow statement.

Investors pay attention to a company's profit margins since they result in a higher rate of return. The company's annual report from the prior year and goodwill of the company show investor to easily invest without any risk.

As a result, an investor must be interested of the company's financial statements and goodwill.

Learn more about on company, here:

brainly.com/question/20354514

#SPJ1

8 0
2 years ago
Other questions:
  • At year-end (December 31), Chan Company estimates its bad debts as 0.60% of its annual credit sales of $779,000. Chan records it
    8·1 answer
  • The Laresen Company uses the machine hour method of applying factory overhead to production. The budgeted factory overhead last
    10·1 answer
  • List the four steps in the response model for answering behavioral interview questions.
    11·2 answers
  • Which of the following is/are appropriate displays for the distribution of salaries at a small company with 75 employees?
    14·1 answer
  • Epolito Corporation incurred $87,000 of actual Manufacturing Overhead costs during September. During the same period, the Manufa
    5·1 answer
  • The Wall Street Journal magazine offers a significant discount to students who purchase a one-year subscription. If the reason f
    6·1 answer
  • The strategy in a mature industry to invest in infrastructure that would be cost-prohibitive for new entrants to deter new compe
    14·1 answer
  • An outside supplier has offered to make the part and sell it to the company for $29.80 each. If this offer is accepted, the supe
    12·1 answer
  • The type of leadership most appropriate when major changes are needed in an organization would be: Group of answer choices trans
    15·1 answer
  • Trevor has bought his first home in Fort Wayne (tax rate 3.57%) that has an assessed value of $190,000. What is his tax bill amo
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!