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OlgaM077 [116]
3 years ago
8

Salim has an investment worth $300,000. The investment will make a special payment of X to Salim in 2 years from today. The inve

stment also will make regular, fixed annual payments of $65,000 to Salim with the first of these payments made to Salim in 1 year from today and the last of these annual payments made to Salim in 6 years from today. The expected return for the investment is 10 percent per year. What is X, the amount of the special payment that will be made to Salim in 2 years?
Business
1 answer:
sasho [114]3 years ago
7 0

Answer: $‭20,455.66

Explanation:

These are fixed payments per year so it is an annuity.

The present value annuity factor for a discount rate of 10% and 6 years duration is 4.3553.

The present value of the investment is therefore;

= 65,000 * 4.3553

= $283,094.5‬0

The special payment in 2 years from today will be;

Special payment = future value of difference between investment amount and investment present value

= (300,000 - 283,094.5‬0) * ( 1 + 10%)^2

= $‭20,455.66

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An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labour to produce its total output of 640 u
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Answer:

Explanation:

1. To find the cost per unit of production, first we find the total cost. So we multiply the unit of each factor used times its cost.

capital: 2*$10=$20

raw materials: 5*$4=$20

labour: 8*$3=$24

Total cost: $20+$20+$24=$64

Then we divide the total cost over the total units produced:

Cost per unit: $64/640=$0,1 Answer is B

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capital: 2*$10=$20

raw materials: 5*$8=$40

labour: 8*$3=$24

Total cost: $20+$40+$24=$84

To find how much the cost per unit will rise, to find how much it rises

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131.2%-100=31.2%. The answer is B

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In the _____ structure hierarchy, the headquarters relies on strategic controls to set rate-of-return targets and financial cont
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In the competitive structure hierarchy, the headquarters relies on strategic controls to set rate-of-return targets and financial controls to monitor divisional performance relative to those targets.

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1 year ago
Harrods PLC has a market value of £139 million and 5 million shares outstanding. Selfridge Department Store has a market value o
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Answer:

(a) The stock price of Harrods be after the acquisition is £ 31.45

(b) The exchange ratio between the two stocks would be 0.8550

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Harrods PLC has a market value of £139 million and 5 million shares outstanding.

Selfridge Department Store has a market value of £41 million and 2 million shares outstanding.

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