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harina [27]
3 years ago
5

"You found out that now you are going to receive payments of $8,500 for the next 16 years. You will receive these payments at th

e beginning of each year. The annual interest rate will remain constant at 11%. What is the present value of these payments
Business
1 answer:
Paraphin [41]3 years ago
5 0

Answer:

Present value= $62,722.875≈ $62,723

Explanation:

To calculate present value use this formula

Present value= Yearly payment*{[1-(1+rate)^-period]/rate}

Present value= 8,500*{[1-(1+0.11)^-16]/0.11}

Present value= 8,500* {0.8117/0.11}

Present value= 8500*7.379= $62,722.875

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​Sandstone, Inc. is considering a fourminusyear project that has an initial afterminustax outlay or afterminustax cost of​ $80,0
mote1985 [20]

Answer:

NPV = $28020.99

so he accept the this project as NPV value is positive

Explanation:

given data

CF 0 = $80000

CF 1 = $40000

CF 2 = $40000

CF 3 = $30000

CF 4 = $30000

discount rate r = 12%

solution

we get here Net present value (NPV) of the project that is total sum of the current value of all flow that is express as

NPV = - CF 0 + \frac{CF1}{(1 + r)} + \frac{CF 2}{(1 + r)^2} + \frac{CF3}{( 1+ r)^3} + \frac{CF4}{(1+r)^4}     ...........................1

put here value and we get

NPV  = - 80000 + \frac{40000}{(1+ 0.12)} + \frac{40000}{(1+ 0.12)^2} + \frac{30000}{( 1 + 0.12)^3} + \frac{30000}{(1+ 0.12)^4}  

solve it we get

NPV =  - 80000 + 35714.29 + 31887.76 + 21353.41 + 19065.54

NPV = $28020.99

so he accept the this project as NPV value is positive

4 0
3 years ago
Shane is the project manager of the organizational development team at Solid Hardwoods. Shane's team has been assigned the task
qaws [65]

Answer: Option B

Explanation:  Centralization or centralization  is the mechanism by which an organization's operations, particularly those related to planning and policy-making, framing strategies and regulations, are consolidated within a specific geographic region unit and are handled by some for the individual employees within.

These employees are usually the top managers and executives working in the company and have authority to make decisions that can impact the company as a whole.

Hence from the above we can conclude that the correct option is B.

7 0
3 years ago
When interest rates on treasury bills and other financial assets are low, the opportunity cost of holding money is _________, so
o-na [289]

When interest rates on treasury bills and other financial assets are low, the opportunity cost of holding money is <u>low </u>so the quantity of money demanded will be <u>high</u>.

If interest rates go up, the demand for money will go down. Once it equals the new money supply, there will be no more difference between how much money people are holding and how much they want to keep, and the story is over. This is why (and how) a decline in the money supply raises interest rates.

As interest rates rise, the amount of money demanded decreases because the opportunity cost of holding money decreases. As interest rates rise, aggregate demand shifts to the left. The interest rate effect arises from the idea that higher price levels reduce the real value of household holdings.

Learn more about interest rates here: brainly.com/question/1115815

#SPJ4

7 0
2 years ago
the fed took action in late 2008 to significantly decrease the federal funds rate. this action is best considered:
Sedaia [141]

At the end of 2008, the Fed took action to significantly lower the federal funds rate.The best way to describe this action is as offensive.

Quantitative facilitating is a strategy when a national bank endeavors to invigorate the economy by purchasing long haul protections.The Fed wanted to lower the interest rates on 10-year Treasury notes and mortgages.

In response to the Great Recession, what actions did the Federal Reserve take?

To lower interest rates, it bought on the open market.

The Federal Funds Rate—also known as the Federal Funds Target Rate or the Fed Funds Rate—is set by the Federal Open Markets Committee (FOMC) to direct overnight lending among U.S. banks.It is established as a range between two limits.Currently, the federal funds rate is 3.75 percent to 4%.

Learn more about Federal Funds Rate here:

brainly.com/question/1354434

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5 0
1 year ago
Enlightened carmakers hired women designers, engineers, and marketing executives to better understand the way women decide to bu
attashe74 [19]

Answer:

\boxed{\bold{Most \ women \ dislike \ the \ car-buying \ experience.}}

Explanation:

➤ Most women dislike the car-buying experience

The reason that the enlightened carmakers might have hired women in the first place was to better understand the way women decide to buy cars. From this, we can conclude that trying to sell a woman a car is not very easy. In order to get inside the women's head and think like that women does, they need to hire one of their kind, which is a woman. A woman understands a woman and can better sell the car to them because they know what the woman wants, feels, likes and dislikes.

- Mordancy

6 0
4 years ago
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