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
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

You might be interested in
Belvedere Corporation had a balance in its Equipment account on January 1, Year 1 of $341,200. During the year, equipment origin
Varvara68 [4.7K]

Answer:

$56,600.00

Explanation:

The amount the company spent on purchase of additional equipment during year 1 can be ascertained using the formula below:

amount spent on additional equipment=ending balance of equipment-(beginning balance-cost of equipment sold)

ending balance of equipment is  $304,700

beginning balance is $341,200

cost of equipment sold is $93,100

amount on additional equipment=$304,700-($341,200-$93,100)=$56,600.00  

5 0
3 years ago
Suppose that Fizzo and Pop Hop are the only two firms that sell orange soda. The following payoff matrix shows the profit (in mi
Serga [27]

Solution :

It is given that Fizzo and Pop Hop sells orange soda. Fizzo advertises about his drinks while Pop Hop does not advertises.

According to the matrix provided we can conclude that :

-- If Fizzo wishes to advertise about his soda drinks, he will earn a profit of 8 million dollar and if Pop Hop do advertises and a 15 million dollar if Pop Hop does not advertises.

-- If Fizzo does not advertise, it will earn profit of about 2 million dollar if Pop Hop advertises and 9 million dollar if Pop Hop does not advertises.

-- When Pop Hop wished to advertise , Fizzo will make a higher profit if he chooses to advertise.

-- When Pop Hop do not advertise, Fizzo will make a higher profit when it chooses to advertise.

And if both the firms acts independently and they start off not advertising, then --- both firms will advertise as both of them will earn highest profits each.

If both the firms collude and both firms start off not advertising, the strategies they will end up is that both the firms will not advertise as the joint profit will be maximized.

3 0
3 years ago
Round Barn stock has a required return of 11.00% and is expected to pay a dividend of $2.35 next year. Investors expect a growth
34kurt

Answer:

$47

Explanation:

Given that,

Required return = 11.00%

Expect a growth rate = 6.00%

Expected to pay a dividend next year = $2.35

Stock Price:

=  Dividends (Div)  ÷  (Expected Return (R)  -  Dividend Growth Rate (G))

= $2.35 ÷ (11% - 6%)

= $2.35 ÷ (5%)

=  $47

Therefore, the current fair price for the stock is $47.

7 0
4 years ago
What is the real advantage to a franchise? They already have all of their signs and menus prepared. When a company is able to of
11111nata11111 [884]

Answer:  When a company is able to offer a good product and enjoy strong customer demand, a franchise owner not only is able to take advantage of the corporate identity but its strong customer base, as well.

A franchise is a kind of a license which allows the party who acquires it (franchisor) access to an business' (franchisor's) proprietary knowledge and processes  in order to sell products or provide services under the franchisor's name.

A franchisee associates itself with a well proven business model and gains access to the franchisor's customer base. Additionally, the franchisor provides  assistance by training the franchisee and his personnel to provide a uniform product or service experience to customers across all the stores.

All these factors help in eliminating business risk and this constitutes a real advantage to a franchise.

6 0
3 years ago
Read 2 more answers
Talk about your experience as a leader of a team at school?
Lera25 [3.4K]
It was very good I lead them army of students at a football team
8 0
3 years ago
Read 2 more answers
Other questions:
  • Nike _________________ its products in foreign countries, where labor is cheap and production sites are owned by other companies
    10·1 answer
  • 3. What are you doing to maxiumize your profits at this time?​
    12·2 answers
  • Managers at sprocket inc. have recognized declining sales on their water purifier and must make a decision about what to do. the
    13·1 answer
  • If your consumption function looks like C=$97+.92Yd and your disposable income is 100 then your savings is
    8·1 answer
  • Isis and Kelsey are forming a partnership. Isis will invest a piece of equipment with a book value of $7,500 and a fair market v
    12·2 answers
  • Which government action is related to fiscal policy?
    8·2 answers
  • Which of the following is true with regard to a market segment? A market segment consists of consumers who respond in a similar
    8·1 answer
  • Assume that the MPC is .80. If the Federal Reserve decreases the money supply, interest rates rise, and investment spending fall
    9·1 answer
  • The supply and demand curves reflect the availability and cost of a new gaming system. If the gaming system market is currently
    11·2 answers
  • During her day, Tiara often works on about eight different cars fixing any problems and making suggestions to customers about ho
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!