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
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

You might be interested in
Distribution strategies ​
serious [3.7K]
At the strategic level, there are three broad approaches to distribution, namely mass, selective and exclusive distribution. The number and type of intermediaries selected largely depends on the strategic approach. The overall distribution channel should add value to the consumer.
3 0
3 years ago
The replacement of a planning machine is being considered by the Reardorn Furniture Company.​ (There is an indefinite future nee
Yuliya22 [10]

Answer:

We have the comparison below

Explanation:

                                                     1          2           3

Expenses for the year 20000    27000      34000

PVIF at 12%                      0.89286   0.79719      0.71178

PV of expenses                 17857    21524       24201

Cumulative PV of expenses 17857 39381 63582

EOY MV                                        -1000 -1750 -2500

PV of MV                                 -893 -1395 -1779

Total PW (4000+ PV of expenses - PV of MV) 22750   44776    69361

P/A                                            0.89286 1.69005 2.40183

EUAC                                     25480 26494 28879

3 0
3 years ago
The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year, res
hoa [83]

Answer:

Hidden Valley's Asset Turnover = 1.6

Explanation:

Average Total Asset = (Total Assets at the beginning of the year + Total Assets at the end of the year)/2

Average Total Asset = (450,000+550,000)/2

Average Total Asset = 1,000,0000/2 = 500,000

Asset Turnover = Net Sales / Average Total Asset

Asset Turnover = 800,000/500,000

Asset Turnover = 8/5

Asset Turnover = 1.6

7 0
3 years ago
Read 2 more answers
You see a used sporty car that you would like to own. It costs $9,000 and you would pay 7.2% interest, compounded monthly and fi
bogdanovich [222]

Answer:

$24,705.8

Explanation:

To find the answer, we will use the present value of an annuity formula:

PV = A (1 - (1 + I)^-n / i

Where:

  • PV = Present value of the investment (in thise case, the cost of the car)
  • A = Value of the annuity (the monthly payments)
  • i = Interest Rate
  • n = number of compounding periods

The monthly payments are an annuity: they are periodic, fall under the same interest rate, and have the same value, therefore, if we find the value of the annuity, we will find the value of the first monthly payment at the same time (both things are the same):

Plugging the amounts into the formula we obtain:

9,000 = A ( 1 - (1 + 0.072)^-36 / 0.072

9,000 = A (12.75)

9,000 / 12.75 = A

705.88 = A

Now, to find the full value of the loan, we multiply the annuity value for 36, because that value will be paid 36 times until the loan is completed:

Full value of the loan = 705.88 x 36

                                   = 25,411.68

Finally, to find the loan balance after the first payment, we take the full value of the loan, and substract the value of the annuity from it:

Loan balance after first payment = 25,411.68 - 705.88

                                                      = 24,705.8

3 0
3 years ago
In the case of existing customers, ________ gives the information on the date and type of contact,
TEA [102]

Answer:

performance data

Explanation:

It seems that the question is structured a little off, but based on the information that is provided the answer that would go in the blank area would be performance data. As mentioned in the question performance data provides all the information regarding a single transaction, including the date and type of contact that inquired about the product in question. Which is what is being described in the question as well as answers a) and b) which i believe is part of the initial question and not answer choices.

4 0
3 years ago
Other questions:
  • A nonconventional cash flow pattern associated with capital investment projects consists of an initial outflow followed by a ser
    9·1 answer
  • All things being equal, which will move more easily; a newly polished car or a car that has never been polished
    7·1 answer
  • The government uses indexing to revise tax brackets so that workers do not pay higher taxes just because
    8·1 answer
  • On January 1, year 1, a company grants 5,000 nonqualified stock options to an employee with a strike price of $3 per option and
    7·1 answer
  • All of the following will cause a decline in a company’s gross profit EXCEPT A : clearance of discontinued inventory. B : sellin
    11·1 answer
  • Because tacit knowledge is so difficult to communicate, _______ might be the single best way to acquire it. Select one: a. writt
    5·1 answer
  • Who is the richest man in the world
    8·1 answer
  • Rachel's Designs has 2,000 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining
    10·1 answer
  • A private not-for-profit entity estimated its Allowance for Contractual Adjustment. During the next year, the hospital found tha
    6·1 answer
  • in 2022 medrano manufacturing reported 3.9 billion in cash flows from operating actiivites but on ly 2.7 billion in net income w
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!