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
kumpel [21]
3 years ago
12

Problem 6-3 Future Value and Multiple Cash Flows [LO1] Fuente, Inc., has identified an investment project with the following cas

h flows. Year Cash Flow 1 $ 1,100 2 1,330 3 1,550 4 2,290 a. If the discount rate is 6 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the discount rate is 14 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If the discount rate is 21 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Vikki [24]3 years ago
8 0

Answer:

Year 1 = $1,100

Year 2 = $1,330

Year 3 = $1,550

Year 4 = $2,290

(a) If the discount rate is 6 percent, then the future value of these cash flows in Year 4:

To solve this problem, we must find the FV of each cash flow and add them. To find the FV of a lump sum, we use:

FV=P(1+r)^{t}

FV=1,100(1.06)^{3} +1,330(1.06)^{2} +1,550(1.06)+2,290

= $6737.51

(b)  If the discount rate is 14 percent, then the future value of these cash flows in Year 4:

FV=1,100(1.14)^{3} +1,330(1.14)^{2} +1,550(1.14)+2,290

= $7415.17

(c) If the discount rate is 21 percent, then the future value of these cash flows in Year 4:

FV=1,100(1.21)^{3} +1,330(1.21)^{2} +1,550(1.21)+2,290

= $8061.47

You might be interested in
Bank A has a higher ROA than Bank B. Both banks have similar interest income to asset ratios and noninterest income to asset rat
iren2701 [21]

Answer:

A) I only

Explanation:

We can conclude that bank A will be more profitable than bank B since ROA is a measurement of profitability, and if the banks are operating in a similar manner (both interest income to asset ratios and noninterest income to asset ratios are similar), then the bank with the highest ROA is the most profitable one.

8 0
3 years ago
Wiggle Pools has total equity of $358,200 and net income of $47,500. The debt-equity ratio is .68 and the total asset turnover i
Westkost [7]

Answer:

It is 6.58%

Explanation:

Debt-Equity Ratio = Debt/Equity

0.68= Debt/358,200

Debt = 0.68 x 358,200

Debt = $243,576

Total Asset Turnover = Revenue/ Total Asset

Total Assets = Debt + Equity = $243,576+ $358,200=$601,776

1.2= Revenue/601,776

Revenue= 1.2 x 601,776

              =$722,131.20

Profit Margin = Net income/ Revenue x 100%

                       = $47,500/$722,131.20 x100%

                       = 6.58%

6 0
3 years ago
The simple interest 500,000 amount to 630,000. what is the percentage rate?​
3241004551 [841]
26% Subtract 500,000 from 630,000. Then divide the difference by 500,000.
4 0
3 years ago
Which of the following defenses can an alleged infringer use to prove that the patent is invalid? Group of answer choices The in
Strike441 [17]
The invention has produced unexpected results
6 0
2 years ago
WILL MARK BEST ANSWER BRAINLIEST
Hoochie [10]

A professional email based on the given scenario would sound like the following:

<em>To: Assistant</em>

<em>From: Manager</em>

<em>Subject: Flight and Hotel Booking for Chicago</em>

<em>Date: January 28, 2022</em>

<em />

<em>Hi,</em>

<em />

<em>Please book my flight and hotel reservations for the upcoming conference in Chicago from February 7, 8:00 am to February 11, 2022 (5:00 pm).</em>

<em />

<em>Do not forget the company's favorite airline and hotel for the bookings.</em>

<em />

<em>Regards,</em>

<em />

<em>Tony</em>

Thus, while the email sounds professional, it may be more conversational than formal since it is a workplace request.

Learn more about writing workplace emails to subordinates at brainly.com/question/14236855

6 0
2 years ago
Other questions:
  • In the monetarist view, the long-run Phillips curve is____________.
    14·1 answer
  • How is a significant amount of consignment inventory reported in the balance sheet? a)The inventory is reported separately on th
    12·1 answer
  • All societies face a trade-off between equality and efficiency.
    6·1 answer
  • Inventory management is largely self-contained in the sense that very little coordination among the sales, purchasing, and produ
    8·2 answers
  • Sheridan Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled
    15·1 answer
  • Help me its urgent............
    5·1 answer
  • What does a money market account offer that a certificate of deposit (CD)
    7·1 answer
  • Please help me!!! Click here for question!
    11·2 answers
  • you are considering starting a business to provide high quality bookkeeping services targeted to restaurants and other food serv
    6·1 answer
  • what corporate diversification strategy is being pursued by disney? what evidence do you have that supports your position? how d
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!