Answer:
The present value is $0.86.-
Explanation:
Giving the following information:
Future Value (FV)= $1
Number of periods (n)= 3 years
Interest rate (i)= 5% = 0.05
<u>To calculate the present value (PV), we need to use the following formula:</u>
PV= FV/(1+i)^n
PV= 1/(1.05^3)
PV= $0.8634
The present value is $0.86.-
Answer:
produce unique products
Explanation:
when a business produce unique products can't be threatened by substitution products
Answer:
47 months
Explanation:
This can be calculated using a financial calculator :
I = 18% / 12 = 1.50%
PV = -5000
PMT = 150
FV = 0
N = 47 months
Answer:
Total cash disbursement= $12,620
Explanation:
Giving the following information:
10% of purchases on account are paid in the month of the purchase
90% of purchases on account are paid in the month following the month of the purchase
Purchases:
March= $11,900
Abril= $12,700
<u>Cash payment April:</u>
Purchase on account from April= 12,700*0.9= 11,430
Purchase on account from March= 11,900*0.1= 1,190
Total cash disbursement= $12,620