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
kakasveta [241]
3 years ago
15

Star Studios is looking to purchase a new building for its upcoming film productions. The company finds a suitable location that

has a list price of $1,460,000. The seller gives Star Studios the following purchase options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.)
Pay $1,460,000 immediately.
Pay $460,000 immediately and then pay $136,000 each year over the next 10 years, with the first payment due in one year.
Make 10 annual installments of $180,000, with the first payment due in one year.
Make a single payment of $2,160,000 at the end of five years.

Determine the present value for each option assuming that the company can borrow funds to finance the purchase at 6%.
Business
1 answer:
andriy [413]3 years ago
8 0

Answer:

Present value for option 1 = $1,460,000

Present value for option 2 = $1,460,971.84

Present value for option 3 = = $1,324,815.67

Present value for option 4 = $1,614,077.65

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator.

For the first option, the present value is $1,460,000.

For the second option:

Cash flow in year zero = $460,000

Cash flow each year from year one to ten =

 $136,000

I = 6%

Present value = $1,460,971.84

For the third option:

Cash flow each year from year 1 to 10 = $180,000

I = 6%

Present value = $1,324,815.67

For the fourth option:

Cash flow each year from year 1 to 4 = 0

Cash flow in year 5 = $2,160,000

I = 6%

Present value = $1,614,077.65

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

You might be interested in
When using the IDRC to assess the external environment the company will look at which of the following?
SpyIntel [72]

Answer: Knowledge

 

Explanation: IDRC engages in expertise, creativity, and strategies to increase the quality of life in developing countries as a segment of Canada's international affairs and development activities. IDRC aims to address realistic development issues with the brilliant minds in Canada and across the globe.

In addition to promoting global stability and development, partnering with local academic institutions and financing agencies effectively decreases reliance on assistance while establishing political leadership.

Thus, from the above we can conclude that the primary focus in the program is on knowledge.

3 0
2 years ago
Use the drop-down menus to indicate whether each of the following events would be recorded as revenues or expenses at the time i
nikitadnepr [17]

Answer and Explanation:

The classification is as followS:

<u>Transactions                                 Accrual basis        Cash basis </u>

1. Cash received in advance      Not record              record the revenue

2. Purchase supplies                  Not record              Not record the expense

3. Received cash for services     record  revenue       record revenue

4. Perform services                     Record revenue       Not record the revenue

5. Pay cash for the supplies         Not record          record the expense

In this way it should be classified

4 0
3 years ago
Due Monday by 5:29pm Points 100 Submitting a file upload Available Nov 30 at 12am - Dec 7 at 5:29 pm 8 days ACG2021 - Comprehens
jarptica [38.1K]

Answer:

Explanation:

What’s the question?!

3 0
3 years ago
Jim receives a copy of a proposal for a new radio station in his town. From the information, he learns the potential for profits
Anastaziya [24]

Jim is analyzing the <u>prospectus </u>through which he learns about the potential for profits, the risk involved, and the capital that is needed to become a shareholder of a company.

<h3>What is the significance of the prospectus?</h3>

It is crucial for an investor to get as a good deal of data as feasible approximately a funding earlier than placing your money into any company. One of the files provided through many businesses is the <u>prospectus. </u>

The prospectus presents you with data approximately the funding and allows you're making a knowledgeable choice as an investor.

Therefore, Jim is analyzing the <u>prospectus </u>through which he learns about the potential for profits, the risk involved, and the capital that is needed to become a shareholder of a company.

Learn more about <u>the prospectus:</u>

brainly.com/question/27245796

#SPJ1

8 0
2 years ago
Ed is a 30 year old veterinary technician. Physical exam reveals a height of 5 foot 9 inches, and a weight of 210 pounds. Accord
lianna [129]

Answer:

BMI = 31.18 kg/m²

According to BMI, this patient is diagnosed as Obese.

Explanation:

BMI known as body mass index is taken from a person height and weight. BMI is a person's weight in kilograms divided by the square of height in meters. BMI is usually expressed in kg/m².

Mathematically ,

BMI = weight(kg)/height(m²)

we have to convert the weight and the height to the required units.

converting pounds to kg

2.2 pounds = 1 kilogram

210 pounds = ?

cross multiply

210/2.2 = 95.50 kilograms

converting foot to inches and to meter.

1 foot = 12 inches

5 foot = ?

12 × 5 = 60 inches

60 inches + 9 inches = 69 inches

1 inches = 0.0254 meters

69 inches = ?

69 × 0.0254 = 1.7526  meters

using the formula

BMI = weight(kg)/height(m²)

BMI = 95.50/(1.75)²

BMI = 95.50/3.0625   kg/m²

BMI = 31.1836734694  kg/m²

BMI = 31.18 kg/m²

6 0
2 years ago
Other questions:
  • Total fixed costs for Taylor Incorporated are $260,000. Total costs, including both fixed and variable, are $500,000 if 156,000
    12·1 answer
  • Under IRS rules, if a customer selling shares of stock wishes to use specific identification instead of FIFO for cost basis repo
    9·1 answer
  • Which of the following is an application of​ conservatism? A. reporting inventory at the lower of cost or market B. using the sa
    13·1 answer
  • What is meant by 4/5 rule
    7·1 answer
  • If you are a jury member, which of these are topics you might discuss with the other jurors during trial? (Select all that
    8·1 answer
  • Question 6 Paige Company estimates that unit sales will be 11,100 in quarter 1, 12,300 in quarter 2, 14,500 in quarter 3, and 18
    11·1 answer
  • At age 37 you start saving for retirement if your investment plan pays an APR of 6% and you want to have $.09 million when you r
    14·1 answer
  • How do financial intermediaries impact the market efficiency?​
    12·2 answers
  • Results Of<br>Distinguish between Single Entry System and Double Entry System accounts<br><br>​
    7·1 answer
  • What measures can Nando’s use to assess environmental turbulence within the macro-environment?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!