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
denis-greek [22]
2 years ago
10

You have just received a windfall from an investment you made in a​ friend's business. She will be paying you $ 15 comma 555 at

the end of this​ year, $ 31 comma 110 at the end of next​ year, and $ 46 comma 665 at the end of the year after that​ (three years from​ today). The interest rate is 6.7 % per year. a. What is the present value of your​ windfall? b. What is the future value of your windfall in three years​ (on the date of the last​ payment)?
Business
1 answer:
Vilka [71]2 years ago
7 0

Answer:

Present value = $75,379.47

Future value is $91,567.97

Explanation:

a) Present value of cash flow is calculated as:

Present\ value = \frac{(15,555}{1.067} + \frac{(31,110}{(1.067)^2}) + \frac{(46,665}{(1.067)^3})

Present value = $14578.25 + $27,325.69 + $33475.53

Present value = $75,379.47

b) Future value of windfall is calculated as

Future\ value  = present\ value \times (1-r)^n

Future\ value  = 75379 \times (1+ 0.067)^3

Future value is $91,567.97

You might be interested in
A cost incurred in the past that is not relevant to any current decision is classified as a(n):_________
inessss [21]

A cost incurred in the past that is not relevant to any current decision is classified as a(n): Sunk costs

This is further explained below.

<h3>What are Sunk costs?</h3>

Generally, A cost that has already been incurred but cannot be recouped is referred to as a "sunk cost" in economics and the process of making business decisions. In contrast to sunk costs, prospective costs are future expenses that might be avoided if action is done, while sunk costs have already been incurred.

In conclusion, A cost that was incurred in the past but is not relevant to any choice that is being made at this time is considered to be a(n): Incurred expenses

Read more about Sunk costs

brainly.com/question/20438089

#SPJ1

6 0
1 year ago
Customers who actively trade their listed stock portfolios should have a strong understanding of:________.
Papessa [141]

Answer:

Timing Risk

Explanation:

Timing risk is a type of investment risks that a trade will not be performed at the best market price.

5 0
3 years ago
When George and Arthurine Renfro decided to start a family business in 1990 and market chowchow, a southern regional food, they
Katyanochek1 [597]

Answer:

identifying pricing constraints.

Explanation:

From the question we are informed about George and Arthurine Renfro decided who decided to start a family business in 1990 and market chowchow, a southern regional food, they had to determine how they would price the chowchow by examining the demand for the product (would people rather eat home-made or store-bought), the cost of getting the jars for bottling the chowchow, and how much it would cost to distribute the product to area stores. In other words, in this case, the Renfros had to begin the development of their pricing strategy by identifying pricing constraints. .

Pricing constraints can be regarded as

factors which brings about limit of latitude of prices which a company may set.

7 0
2 years ago
A research scientist with a major pharmaceutical firm in New Jersey is caught passing on sensitive information, worth millions o
Mnenie [13.5K]

Answer:

Corporate espionage.

Explanation:

Corporate espionage is the act of utilizing espionage techniques for business or financial purposes. We normally consider "espionage" regarding spies taking a shot at benefit of one government attempting to get data about another.

7 0
3 years ago
Assume that Robin's checking account at Folsom Bank has a balance of $2,000. If Robin withdraws $200 of cash from the bank's ATM
astra-53 [7]

Answer:

c

Explanation:

because he got out 200 from his bank

4 0
2 years ago
Other questions:
  • What makes McDonald's successful in business?
    6·2 answers
  • Arnie's service station has to follow specific regulations on the disposal of used tires and motor oil. Which government agency
    13·1 answer
  • HELP!
    9·1 answer
  • Bonnie and Clyde each own one-third of a fast-food restaurant, and their 13-year-old daughter owns the other shares. Both parent
    12·1 answer
  • On September 1, 2017, Banner Co. borrowed $70,000 from the City Bank for five months at 9%. Interest was properly accrued on Dec
    13·1 answer
  • A company rents a building with a total of 100,000 square feet, which are evenly divided between two floors. The space on the fi
    13·1 answer
  • Simone is the only provider of pumpkins for three cities. Because she has her own large garden, the marginal cost to produce an
    9·1 answer
  • Assume an after-tax savings interest rate of 7 percent and a tax rate of 28 percent. (a) Calculate the total rental cost and tot
    9·1 answer
  • What are some of the various potential sources for business credit? Give at least three examples
    10·1 answer
  • Use the data given in P13-5 for Prince Company.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!