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Leokris [45]
4 years ago
13

A publisher is deciding whether or not to invest in a new printer. The printer would cost $900, and would increase the cash flow

s in year 1 by $500 and in year 3 by $800. Cash flows do not change in year 2. If the interest rate is 12%, what is the present value of the cash flows from the investment
Business
1 answer:
kompoz [17]4 years ago
6 0

Answer:

The present value of the cash flows from the investment is $1015.85.

Explanation:

The present value of the cash flows can be calculated using the discounted cash flows approach also known as the DCF approach. Under this approach, the cash flows are discounted to the present day value using a certain discount rate.

The formula to calculate the present value of the cash flows is,

Present value = CF1 / (1+i) + CF2 / (1+i)^2 + ... + CFn / (1+i)^n

Where,

  • CF are the cash flows
  • i is the interest rate which is also the discount rate

Present value = 500 / (1+0.12)  +  800 / (1+0.12)^3

Present value = $1015.85277 rounded off to $1015.85

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A. Knowing how to prioritize
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Troy, who is 18, offers to sell Jenna, who is also 18, his car for $5,000. Jenna accepts Troy's offer, but only agrees to pay $4
Ratling [72]

Answer:

Acceptance

Explanation:

For a contract there are some certain conditions to be fulfilled, to call it valid. This includes the basic two things:

Offer and acceptance.

Offer refers to the option provided by a party in the contract and that there is acceptance from opposite party to accept the offer, and when it is accepted as the offer itself, then the contract is valid.

In the given instance there is an alteration in the acceptance conditions as not same like offer. The offer price is $5,000 and that the acceptance price is $4,500.

Thus, there is no acceptance in this contract. Rather there is counter offer.

5 0
4 years ago
Choose the correct definition for interest
kaheart [24]

Answer:

a

Explanation:

8 0
3 years ago
A company issues 8% bonds with a par value of $190,000 at par on January 1. The market rate on the date of issuance was 7%. The
cluponka [151]

Answer:

$7,600

Explanation:

The computation of cash paid on July 1 to the bondholders is shown below:-

cash paid on July 1 to the bondholders = Par Value × Semi annual coupon rate

= $190,000 × 6 months ÷ 12 months × 8%

= $190,000 × 0.5 × 0.08

= $7,600

We considered the 6 months as semi-annually is mentioned in the question

Therefore for computing the cash paid on July 1 to the bondholders we simply applied the above formula.

7 0
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Which of the following personal property items has the HIGHEST specific limitation on coverage?
Charra [1.4K]

The personal property items that have the HIGHEST specific limitation on coverage are jewelry, watches, and precious stones or metals because they are saved in a location, especially in banks

<h3 /><h3>The properties having HIGHEST specific limitation on coverage.</h3>

A limit is the highest amount your insurer will pay for a claim that your insurance policy covers.

Some of these specific limits apply to a building or personal property at a single location.

From the listed option, the personal property items that have the HIGHEST specific limitation on coverage are jewelry, watches, and precious stones or metals because they are saved in a location, especially in banks

Learn more on specific limitations on coverage here: brainly.com/question/27015627

8 0
2 years ago
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