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mixer [17]
2 years ago
12

An investment will pay $200 at the end the year, $250 at the end of the next year, $400 at the end of the third year, and $500 a

t the end of the 4th year. Other investments of equal risk earn 6%. How much is this investment worth today
Business
1 answer:
Anni [7]2 years ago
3 0

Answer:

PV= $1,143.03

Explanation:

Giving the following information:

An investment will pay $200 at the end of the year, $250 at the end of the next year, $400 at the end of the third year, and $500 at the end of the 4th year. Other investments of equal risk earn 6%.

To calculate the present value, we need to use the following formula on each cash flow:

PV= FV/(1+i)^n

Cf1= 200/1.06= 188.68

Cf2= 250/1.06^2= 222.50

Cf3= 400/1.06^3= 335.85

Cf4= 500/1.06^4= 396

PV= $1,143.03

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Party A has agreed to exchange $1 million U.S. dollars for1.21 million Canadian dollars. This agreement is called a swap.

<h3>What is swap?</h3>

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1 year ago
A company purchases a remote building site for computer operations. The building will be suitable for operations after some expe
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Answer:

True Statements are:

B, C, D

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The cost of capital asset here will include the following,

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