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
QveST [7]
3 years ago
5

Odeletta Corporation is considering an investment of $ 506 comma 000 in a land development project. The investment will yield ca

sh inflows of $ 212 comma 000 per year for five years. The company uses a discount rate of​ 9%. What is the net present value of the​ investment? Present value of an ordinary annuity of​ $1: ​8% ​9% ​10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 4 3.312 3.24 3.17 5 3.993 3.89 3.791
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
5 0

Answer:

$318,680

Explanation:

initial investment ($506,000)

cash flow year 1 = $212,000

cash flow year 2 = $212,000

cash flow year 3 = $212,000

cash flow year 4 = $212,000

cash flow year 5 = $212,000

discount rate 9%

present value of an ordinary annuity for 5 years and 9% discount rate = 3.89

the net present value = (yearly cash flow x annuity value) - initial investment = ($212,000 x 3.89) -$506,000 = $824,680 - $506,000 = $318,680

The net present value of an investment equals the difference between the present value of the cash flows generated by the investment minus the initial cost of the investment.

You might be interested in
Which statement is an example of effectively managing diversity
SVETLANKA909090 [29]

The statement that shows an example of effectively managing diversity is that change the signs, brochures & the website that involved the other languages from the local government to the legal & illegal immigrants.

The following information is not relevant:

  • If there is an increase in the no of families that are the single parent so it does not decrease the health benefits.
  • In order to decrease workplace diversity, the company does not require  all employees to speak in English.
  • Companies does not recognize the Americans that shows poor demographic group.

Therefore we can conclude that the statement that shows an example of effectively managing diversity is that change the signs, brochures & the website that involved the other languages from the local government to the legal & illegal immigrants.

Learn more about the diversity here: brainly.com/question/1315537

8 0
3 years ago
Treasury spot interest rates are as follows: Maturity (years) 1 2 3 4 Spot rate (EAR) 1.4% 2.8% 3.6% 4.5% What is the price of a
Salsk061 [2.6K]

Answer: $868

Explanation:

Given the following :

Maturity (years) - - - - - - 1 - - 2 - - - 3 - - - 4

Spot rate (EAR) - - - - 1.4% - 2.8% - 3.6% - - 4.5%

What is the price of a risk-free zero-coupon bond with 3 years to maturity and a face value of $1,000 (in $)?

Face value / ( 1 + spot rate)^p+1

Where P = year

=1000/(1+3.6%)^4

1000 / ( 1 + 0.036)^4

1000/(1.036)^4

1000/1.151964303616

=$868.08245

8 0
3 years ago
how do I keep my little sister out of my room?? like for real, she's so fuqing annoying. coming in my room a 3am for no reason,
Cerrena [4.2K]

Answer:

to be honest this is a real problem all over the world but with my experience threaten her with something she would get in trouble for with your parents and start bothering her a bunch and going into her room for no reason

5 0
2 years ago
Mantle Publications publishes a golf magazine for beginners interested in learning and playing golf. The magazine sells for $4.0
omeli [17]

Answer:

December:

Dr cash         $16,000

Cr subscription revenue   $16,000

Dr cash                         $216,000

Cr unearned revenue                     $216,000

January 2017:

Dr unearned revenue $18,000

Cr subscription revenue            $18,000

Explanation:

The sales of 4000 copies at the newstand means that revenue of $16,000($4*4000) has been earned in December,which means that cash would debited with $16,000 and sales revenue credited with the same amount.

In December,the subscriptions received in advance for 2017 of $216,000($36*6000) would be debited to cash and credited to unearned revenue account.

At the end of January,the unearned revenue would be debited with $18,000($216,000/12) in respect of subscription earned as a result of the Magazine been mailed to subscribers in the month,which now entitles the company to one month subscription as earned sales revenue.

3 0
3 years ago
Which of the following jobs is in the agriculture career cluster
Bezzdna [24]
What are the options 
8 0
3 years ago
Read 2 more answers
Other questions:
  • At December 31, 2018, Moonlight Bay Resorts had the following deferred income tax items: Deferred tax asset of $54 million relat
    10·1 answer
  • McRae Corporation's total current assets are $460,000, its noncurrent assets are $560,000, its total current liabilities are $38
    6·1 answer
  • Justin signed a finance agreement for his rent purchase what is the total amount he will pay back under this agreement?
    13·2 answers
  • The supply of pineapples in Hawaii increases, causing pineapple prices to fall. Lower prices mean that Hawaiian households will
    11·2 answers
  • Economists use the word marginal to mean an extra or additional benefit or cost of a decision. An optimal decision occurs when _
    12·1 answer
  • You purchased 1,000 shares of the New Fund at a price of $39 per share at the beginning of the year. You paid a front-end load o
    9·1 answer
  • A profit-maximizing monopolist charges a price of $12. The intersection of the marginal revenue and marginal cost curves occurs
    9·1 answer
  • Explain how savers would respond if the interest rate on savings accounts increased. Would they increase or decrease their amoun
    13·1 answer
  • Read the excerpt from a folktale.
    12·2 answers
  • Identify three major groups of people involved in the marketing research process, and then give at least one example of an uneth
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!