Answer:
The correct solution is "$26,000".
Explanation:
The given values are:
Cost
= $1,750,000
Salvage value
= $150,000
First Year Extraction
= 6,500
Total Extraction
= 400,000
Now,
⇒ 
On putting the values, we get
⇒ = 
⇒ = 
⇒ = 
($)
Answer:
His portfolio's expected return and standard deviation are <u>8.7%</u> and <u>6%</u>, respectively.
Explanation:
portfolio's expected return = (amount invested in risky asset x expected rate of return) + (amount invested in T-bills x expected return) = (30% x 0.15) + (70% x 0.06) = 4.5% + 4.2% = 8.7%
standard deviation = amount invested in risky asset x √variance = 30% x √0.04 = 30% x 0.2 = 6%
Answer:
<em>Approximately $22 billion</em>
Explanation:
<u>Future Value (FV)</u>
Given a present value (PV) of an investment, the annual interest rate r, the future value at time t years is given by
Care must be taken to properly express the time in years and the rate in yearly pertentage.
The estimated value of the Manhattan Island in 1626 was PV=$24. 386 years later, at a r=5.5% its value would be
The present value can be estimated in more than $22 billion
Answer: $3.38
Explanation:
Dividend Yield of a stock refers to the dividend paid by the company expressed in terms of a percentage of the current value of the company's stock.
The Dividend therefore is;
= 75 * 4.5%
= $3.375
= $3.38
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The members want to set up a perpetual fund to provide $100,000 for future replantings every 10 years. The interest rate is 5%.
I will assume that the money is deposited as a lump sum:
FV= PV* (1 + i)^n
PV= FV/ (1+i)^10
PV= 100,000 / 1.05^10= $61,391.33
Now, if n is 100 years:
PV= 100,000/ 1.05^100= $760.45
