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Natali5045456 [20]
3 years ago
5

Liam is considering putting money in an investment plan that will pay him $52,000 in 12 years. If Liam's opportunity cost rate i

s 7 percent compounded annually, what is the maximum amount he should be willing to pay for the investment today?
Business
1 answer:
ASHA 777 [7]3 years ago
6 0

Answer:

$23,088.62

Explanation:

We must determine the present value of Liam's investment discounted by his opportunity cost rate. The present value formula is:

PV = FV / (1 + r)ⁿ

  • FV = $52,000
  • r = 7%
  • n = 12

PV = $52,000 / (1 + 7%)¹² = $52,000 / 2.2522

PV = $23,088.62

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nadya68 [22]

Answer:

$1,000,000

Explanation:

The Amount to be reported as  lease liability must <em>depict </em>the present value of future cash outflows required to be paid as the entity enjoys its <em>right to use the asset</em>.

Thus, the present value of the minimum lease payments at lease inception was $1,000,000 represents the amount of lease liability.

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When a donor makes a gift in trust, who is considered the done?
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yeet

Explanation:

5 0
3 years ago
A company paid $0.85 in cash dividends per share. Its earnings per share is $3.50, and its market price per share is $35.50. Its
natali 33 [55]

Answer: 2.4%

Explanation:

Cash dividend = $0.85

Earnings per share = $3.50

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The dividend yield will be calculated as:

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= $0.85 / $35.50

= 0.024

= 2.4%

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3 0
3 years ago
A new machine for harvesting corn will allow rows to be planted only fifteen inches apart, instead of the usual thirty inches. C
Alik [6]

Answer: Option D

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Therefore the most appropriate answer to the space given above is option D.

5 0
3 years ago
The price of a basket of goods is $2000 in the U.S. If purchasing power parity holds, and the dollar buys two units of some coun
Eva8 [605]

Answer:

4000

Explanation:

Calculation to determine how many units of foreign currency does the same basket of goods cost in that country

Based on the information given we were told that the PRICE OF A BASKET OF GOODS is the amount of $2000 in which the dollar buys TWO UNITS of some country’s currency, now let determine HOW MANY UNITS of foreign currency does the same basket of goods cost in that country

Using this formula

Units of foreign currency=Basket of goods price*Some country’s currency units

Let plug in the formula

Units of foreign currency=$2,000* 2 units

Units of foreign currency=4,000 units

Therefore the number of units of foreign currency that the same basket of goods cost in that country is 4,000

The price of a basket of goods is $2000 in the U.S. If purchasing power parity holds, and the dollar buys two units of some country’s currency, then how many units of foreign currency does

7 0
3 years ago
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