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Sedbober [7]
4 years ago
10

Compute the present value of $700 paid in three years using the following discount rates: 5 percent in the first year, 6 percent

in the second year, and 7 percent in the third year.
Business
1 answer:
Aneli [31]4 years ago
5 0

Answer:

$587.79

Explanation:

Data provided in the question

Amount paid in three years = $700

Discount rate in the first year = 5%

Discount rate in the second year = 6%

Discount rate in the third year = 7%

So by considering the above information, the present value is

= (Amount paid in three years) ÷ (1 + Discount rate in the first year × 1 + Discount rate in the second year × 1 + Discount rate in the third year)

=  ($700) ÷ (1 + 0.05 × 1 + 0.06 × 1 + 0.07)

= ($700) ÷ (1.05 × 1.06 × 1.07)

= $700 ÷ 1.19091

= $587.79

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C) PAC<span>s are formed by interest groups to donate campaign funds and support political candidates.

Political Action Committees are committees organized to donate money for a candidate's campaign. Interest groups usually support certain candidates in return for policies that will benefit the people apart of that interest group. To support the candidate, they form or join PACs in order to donate money to get that candidate elected.</span><span />
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3 years ago
g Which of the following are the three factors used to determine a company's credit rating? Its current ratio, its debt-to-equit
NISA [10]

The three factors used to determine a company’s credit rating are its current ratio, its debt-to-equity ratio, and its interest coverage ratio.

<u>Explanation:</u>

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  • A company’s debt-to-equity ratio is used to know the debt of a company as compared to the total equity. If this ratio is high, the company is taking on much debt.  
  • The current ratio marks a way to compute the liquidity of the company. It shows how well a firm is placed to meet the short term obligations. Broadly, a 2-1 ratio is considered a good ratio.
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8 0
3 years ago
Direct labor and indirect labor are recorded, respectively, to:
torisob [31]

Answer:

d. Work in Process Inventory and Factory Overhead.

Explanation:

Direct labor is labor that is directly involved in the production process, for example a machine operator in a factory is supplying direct labor. So when recording direct labor we do so under work in process inventory as that is where the labour is applied.

Indirect labour is one that is not directly involved in the production process, for example office cleaners, building maintenance. Since their contribution is not directly impacting production, indirect labor is recorded under factory overhead.

8 0
3 years ago
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Suppose for every dollar change in household​ wealth, consumption expenditures change by​ $0.05. If real household wealth declin
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Answer:

B. Minus 2.63%

Explanation:

Increase in consumption = Change in consumption × Household wealth

= $0.05 × $45billion

= $2.25billion

Total output = Potential GDP ÷ Multiplier effect

= $120 billion ÷ 1.4

= $85.71

Total change in output = Increase in consumption ÷ Total output

= $2.25 ÷ $85.71

= $0.0263 or 2.63%

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3 years ago
Careers in the Public Service cluster can help make a difference in the world but they can be tough careers to work in. Describe
Vinvika [58]

Answer:

Working in public sector requires alertness, assertiveness, intelligence, and emotional stability in any individual

Explanation:

Career in public sector services require lot of efforts and determination along with passion for working for the betterment of the society.

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