Answer:
To pay in taxes, to purchase goods to make things if the business is a factory etc. hope this helps
Explanation:
Answer:
$3800
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow fromyear 1 to 15 = 500
I = 10%
PV = 3800
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
Answer:
C. A lump sum of $70,000 today.
Explanation:
C.- Because the if the cash is received today then you will don't have to discounted at all.
The other option puts the 70,00 in the future, so the present value will always be lower than 70,000 today under normal condition.