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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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Answer:

D) They create about 65% of new jobs each year and generate over 50% of the U.S. GDP.

Explanation:

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In revenue generation, Small business makes 54 percent of US sales. They contribute over six trillion-dollars to the economy or 50 percent of the country's GDP

6 0
3 years ago
Due to a recession, expected inflation this year is only 4.25%. However, the inflation rate in Year 2 and thereafter is expected
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Answer:

Explanation:

Yield on 1 year trasury bond: r1=4.25+3.5 = 7.75%

Now, yield is r3 = 7.75+1.5 = 8.25%

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3 years ago
If mega corp. borrows $9,000 and agrees to pay the lender $10,500 in one year, the annual interest rate on this loan is approxim
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In simple interest, the interest rate is
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In compound interest, compounded monthly,
10500=9000(1+i/12)^12
=>
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2 years ago
Use the following selected 2016 balance sheet and income statement information for Home Garden Supply Co. (in millions) to compu
zepelin [54]

Answer:

3.76 times

Explanation:

The computation of the asset turnover is shown below:

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This is the answer but the same is not provided in the given options

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5 0
3 years ago
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