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diamong [38]
3 years ago
14

Suppose that an income producing property is expected to yield cash flows for the owner of $10,000 in each of the next five year

s, with cash flows being received at the end of each period. If the typical investor requires a 12% return annually in this market and the property can be sold for $100,000 at the end of the fifth year, estimate the market value of the property today using discounted cash flow analysis assuming there are no sale expenses. (Input your answer rounded to the nearest whole dollar and without the $ sign, e.g., 1000)
Business
1 answer:
True [87]3 years ago
5 0

Answer:

92,790

Explanation:

We have to calculate the present value of the property:

  • Nper = 5 (5 years x 1 payment per year)
  • R = 12%
  • Payment = $10,000
  • Future value = $100,000
  • PV = ?

The best ans easiest way to calculate the present value is to use an excel spreadsheet and the present value function =PV(rate,nper,payment,fv)  =PV(12%,5,10000,100000) = $92,790.45

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In an attempt to restore equity in the workplace, managers should make sure decision-making processes are fair. For example, emp
iren [92.7K]

Answer:

SANA ALL MAGALING MAG ANSWER

7 0
3 years ago
Equipment with a book value of $83,500 and an original cost of $162,000 was sold at a loss of $32,000. Paid $106,000 cash for a
irga5000 [103]

Answer:

Net cash flow from investing activities $417,400

Explanation:

The computation of cash flow from investing activity is given below:

Cash flow from investing activities  

Add: Equipment sold ($83,500 - $32,000) $51,500

(Book value - loss )  

Less : Acquisition of new truck -$106,000

Add : Land sold $400,000

Add : Long term investment sold $91,400

Net cash flow from investing activities $417,400

3 0
3 years ago
A(n) _____ is in control of an agency relationship because he or she defines the tasks and objectives of the relationship./pract
NARA [144]

Answer:

Principal

Explanation:

The principal has the right to abolish the relation or set the objectives of the agent and allocation of task and authority delagated to the agent. This control is given to principal by law to protect his interests.

8 0
3 years ago
Peanut crops have been destroyed by a fungus. Consumers are substituting almond butter for peanut butter because they perceive i
vladimir2022 [97]

The prices of both peanut butter and almond butter are rising because of the demand and supply forces.

<h3>What is Demand and supply?</h3>

Demand and supply forces are the deriving forces of the market which influence the prices of the commodities. Demand refers to the willingness and ability to purchase the commodity.  

Supply refers to the availability of the product and services in the market that to as per the requirement in the market. Thus both the terms are interrelated and interconnected to each other.

As per the above situation, the rise in the demand of the peanut butter is due the loss of the crop due to fungus with created shortage in the supply of the peanut in the market.

Thus people shifted to its substitute almond butter which rises the demand of the almond butter as well.

Therefore it increased the prices of the  both the kinds of the butter available in the market.

Learn more about Demand and supply here:

brainly.com/question/8650679

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6 0
2 years ago
A company reported total stockholders' equity of $340,000 on its balance sheet dated December 31, 2018. During the year ended De
Digiron [165]

Answer:

$420,000

Explanation:

According to the question for computation of total stockholders' equity first we need to find out the addition to retained earning during 2019 which is shown below:-

Addition to retained earnings during 2019 = Net income - Cash dividend - Stock dividend

= $40,000 - $8,000 - $10,000

= $22,000

Total stockholders equity at December 31, 2019 = Stockholders equity, December 31, 2018 + Addition to retained earnings during 2019 + Stock dividend + Issue of new common stock - Purchase of Treasury stock

= $340,000 + $22,000 + $10,000 + $60,000 - $12,000

= $432,000 - $12,000

= $420,000

3 0
3 years ago
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