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Alex
2 years ago
9

An investment product promises to pay $42,000 at the end of 10 years. If an investor feels this investment should produce a rate

of return of 12%, compounded annually, what's the most the investor should be willing to pay for the investment?a) $42,000b) $15,146c) $13,523d) $130,446
Business
2 answers:
rewona [7]2 years ago
6 0

Answer:

Investor willing to pay for investment $13523

Explanation:

Using the formula

PV = FV x (1 / (1+r) ^ n

PV = $42000 x ( 1 / (1+0.12)^10

PV = 42000 x 0.322

PV = $13523

Leokris [45]2 years ago
4 0

Answer:

$15,146

Explanation:

$42,000 x .32197* = $13,523 (rounded)

*PV of $1: n = 10; i = 12%

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False is correct answer.

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The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be:
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b) Indirect cost

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Although many legal music download sites started up, because of the technology, only a few have survived. It is likely that onli
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c. have decreasing long-run average cost curves.

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5 0
3 years ago
Read the scenario, and answer the question.
kolezko [41]

Answer:

The correct answer is the option A: make your recommendation or action announcement after you discuss the pros, cons, and costs.

Explanation:

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8 0
3 years ago
Suppose Luther Industries is considering divesting one of its product lines. The product line is expected to generate free cash
erik [133]

Answer:

$61,127,596

Explanation:

formula for the value of operations =

[Free Cash Flows (1 + growth rate)] / (WACC - growth rate)

where

We have D/E = 2 or D=2*E  (debt-equity ratio)

Tax = T=35%,

Ks=10%,

Kd =7%

Kd*(1-T) = 7%*(1-35%) = 4.55%

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Value of Ops = $61,127,596

to be profitable it must receive for the product line $61,127,596

6 0
2 years ago
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