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Novay_Z [31]
3 years ago
10

An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. If the required return is

6 percent, what is the value of the investment? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Business
1 answer:
drek231 [11]3 years ago
4 0

Answer:

Today, the investment is worth $31,997.29

Explanation:

Giving the following information:

An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. The required return is 6 percent

First, we need to calculate the final value, using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual pay= 5,900

n= 15

i= 0.06

FV= {5,900*[(1.06^15)-1]} / 0.06= $137,328.22

Now, we can determine the present value:

PV= FV/ (1+i)^n

PV= 137,328.22/ 1.06^25= $31,997.29

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Answer:

$18

Explanation:

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Hence, the contribution per matron may also be derived as the difference between the sales per patron and the variable cost per patron.

The variable cost here is the cost of providing dinner per ticket as such,

Contribution margin per patron

= $40 - $22

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6 0
3 years ago
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Components inc., a maker of vehicle parts, refuses to sell to diy repair inc., a national vehicle service firm. the maker convinces the engine parts company, a competitor, to do the same. this is a group boycott.

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3 0
1 year ago
The movement of parts from one area of the factory to another is considered a value-added activity whereas the storage of raw ma
ivanzaharov [21]

Answer:

TRUE

Explanation:

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If the customers does not wish to pay the price, then there is no value.

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