All categories

3 years ago

1. Use a financial calculator or computer software program to answer the following questions:

Business

1 answer:

netineya [11]3 years ago

3 0

Answer:

a. $66,889.63

b. $107,726.42

Explanation:

We use the Present value function that is to be reflected on the attachment

a. In the first case

Data provided in the question

Future value = $450,000

Rate of interest = 10%

NPER = 20 years

PMT = $0

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $66,889.63

b. In the second case

Data provided in the question

Future value = $450,000

Rate of interest = 10%

NPER = 20 years

PMT = $0

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $107,726.42

You might be interested in

A company that manufactures a device that is heavily regulated by the government and has to undergo a rigorous pre-market approv

Vikki [24]

Answer:

preemption

Explanation:

Preemption -

It refers to the process of getting some prior claim , is referred to as preemption .

It is basically some rights which a company takes before any other company getting it .

Some pre approved process is known as preemption , these claims are required to be taken .

Hence , from the given scenario of the question ,

The correct answer is preemption.

7 0

3 years ago

Suppose the market follows a single index model, where the index has standard deviation of 15%. For a stock with firm-specific r

iogann1982 [59]

Answer:

Explanation:

St deviation of stock σ = √( β² x σ₁² + σ₂² )

σ₁ = standard deviation of market = .15 and σ₂ is standard deviation of firm

Putting the values given

.30 = √ ( β² x .15² + .10² )

.09 = β² x .0225 + .01

β² x .0225 = .08

β² = 3.5555

β = 1.88

3 0

4 years ago

The Lunch Counter is expanding and expects operating cash flows of $32,500 a year for seven years as a result. This expansion re

storchak [24]

Answer:

$109,688.89

Explanation:

According to the scenario, computation of given data are as follows,

Formula for Net present value are as follows,

NPV = -Investment in fixed asset - Net working Capital + Operating cashflow × ( 1 - $(1+r)^{-n}$ ) ÷ r + Net working capital × $(1+r)^{-n}$

Where, r = rate of return

n = number of years

By putting the value, we get

NPV = -28,000 - 2,800 + 32,500 × ( 1 - $(1+0.14)^{-7}$ ) ÷ 0.14 + 2,800 × $(1+0.14)^{-7}$

By solving the above equation, we get

NPV = $109,688.89

8 0

3 years ago

A wealth gap is an economic difference between

kirill115 [55]

Answer:

classes

Explanation:

"The term “wealth gap” refers to the gap in wealth between two groups such as rich and poor people."

6 0

4 years ago

Coache Corporation is considering a capital budgeting project that would require an investment of $120,000 in equipment with a 4

Kaylis [27]

Answer:

a. $44,000

Explanation:

The computation of the total cash flow net of income taxes in year 3 is shown below:

= Incremental sales - annual incremental cash operating expenses - one-time renovation expense - depreciation expense - income tax expense + depreciation expense

= $310,000 - $230,000 - $30,000 - $30,000 - $6,000 + $30,000

= $44,000

Since depreciation is a non-cash expense so it would be added back to the computation part

The depreciation expense would be

= (Original cost - residual value) ÷ (useful life)

= ($120,000 - $0) ÷ (4 years)

= ($120,000) ÷ (4 years)

= $30,000

And, the income tax expense would be

= (Incremental sales - annual incremental cash operating expenses - one-time renovation expense - depreciation expense) × tax rate

= ($310,000 - $230,000 - $30,000 - $30,000) × 30%

= $20,000 × 30%

= $6,000

6 0

3 years ago