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3 years ago

What is the present value of the following cash flows at a discount rate of 9 percent?

Business

1 answer:

frutty [35]3 years ago

4 0

Answer:

Year 1 PV = 91,743.12

Year 2 PV =126,251.99

Year 3 PV = 154,436.70

Explanation:

<em>The present value of future sum is the amount that ought to be invested today at interest rate compounded annually to equal the sum at the end of a particular period.</em>

The present value of a future sum is given as follows:

PV = FV × PV (1+r)^(-n)

PV - present value

FV - Future value

r- interest rate

n- number of years

Year 1 PV = 100,000× 1.09^(-1) =91,743.12

Year 2 PV = 150,000× 1.09^(-2) =126,251.99

Year 3 PV = 200,000× 1.09^(-3) = 154,436.70

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Answer :

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b) Number of setups = 1.4

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Explanation :

As per the data given in the question,

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=sqrt((2 × 2,250 × $350) ÷ $0.80 × (1 - 35 ÷ 140))

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b) Number of setups = Annual demand ÷ Economic production quantity

= 2,250 ÷ 1,621

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c) Formula of Total cost = Carrying cost + Annual setup cost

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= (1,612 ÷ 2)× $0.80 × (1 -35 ÷ 140)

= $486.30

Annual setup cost = (Annual demand ÷ Economic production quantity) × setup cost

= (2,250 ÷ 1,621) × $350

= $485.812

So, Total cost = $486.30 + $485.812

= $972.12 each year

We simply applied the above formulas

6 0

3 years ago

1. Which advantage is not enjoyed by the owner of a sole proprietorship?

gayaneshka [121]

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A sole proprietor is limited to the cash that they personally have, so this is a disadvantage when they need additional capital for the business.

The correct answer to 2 is that their personal property can be used to pay debts.

A partnership is personally responsible for the debts of the company. If the company owes money and cannot pay it, the partners that own the business are personally responsible.

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Answer:

The correct answer is 4

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