The driver of any vehicle about to enter a freeway or highway must yield the _________

Present value concept

Setler [38]

Answer:

The present value concept

1. The single investment made today, earning 5% annual interest that will be worth $4,400 at the end of 5 years is:

$3,447.52

2. The present value of $4,400 to be received at the end of 5 years if the discount rate is 4% is:

$3,447.52

3. The most I would pay today for a promise to repay me $4,400 at the end of 5 years if my opportunity cost is 5% is:

$3,447.52

4. A. A single investment made today, earning 5% annual interest, worth $4,400 at the end of 5 years is $__3,447.52____.

B. The present value of $4,400 to be received at the end of 5 years, the discount rate is 5% is__$3,447.52____.

C. The most you would pay today for a promise to repay you $4,400 at the end of 5 years if your opportunity cost is 5% is $__3,447.52___.

5.

A. The annual interest rate is also called the discount rate or the opportunity cost.

B. In all three cases, you are solving for the present value, PV, which is $3,447.52.

Explanation:

You will need to invest $3,447.52 at the beginning to reach the future value of $4,400.00.

FV (Future Value) $4,400.00

PV (Present Value) $3,447.512

N (Number of Periods) 5.000

I/Y (Interest Rate) 5.000%

PMT (Periodic Payment) $0.00

Starting Investment $3,447.52

Total Principal $3,447.52

Total Interest $952.48

8 0

3 years ago

When a 2/10 end of month discount is used on an invoice dated may 29, a discount is allowed if the invoice is paid by________

Hatshy [7]

Hi there! I think the answer is C, Hope this helps!:D

8 0

3 years ago

Which one of the following is an example of a "flexibility" option? Group of answer choicesA company has an option to close down

mixas84 [53]

Answer:

A company agrees to pay more to build a plant in order to be able to change the plant's inputs and/or outputs at a later date if conditions change.

Explanation:

Real option analysis

This is simply described as a form of an analysis of capital budgeting projects. It is often used by managers so as to influence the size and riskiness of a project's cash flows. And this can be done only by taking different actions or at the end of the project's life.

It uses the usual NPV capital budgeting analysis along with an analysis of opportunities as a result of manager's responses to changing circumstances that can change a project's outcome.

Examples of Real Options

1. Investment timing

2. Abandonment/shutdown

3. Flexibility

4. Growth/expansion

Flexibility Option

This type of re option simply allows operations to be changed based on how conditions change during a project's life. It is said to exists when it is useful spending money today, which therefore helps one to maintain flexibility down the line. That is, either inputs or outputs (or both) can be altered.

3 0

3 years ago

Choose all that apply. Select all the types of retirement accounts. IRA Mutual fund IDA 401(k) 403(b) CD

madreJ [45]

The answer is

IRA

401(k)

403(b)

4 0

3 years ago

When the Constitution was adopted in 1789, why was the federal government granted the authority to raise taxes?

Gelneren [198K]

Answer: Debt Payment, National Defense and Welfare of the United States

Explanation:

When the Articles of the Confederation which was the first Constitution of the United States was ratified in 1781, it included a clause that empowered the State Governments to decide what to give to Congress. Some of them gave less and some gave nothing of what they were supposed to give.

Congress was therefore powerless and risked falling apart and with it, the Central Government.

The Constitution of 1789 changed this by including the 'Taxing and Spending' clause.

This clause gave Congress the right to impose taxes. The clause states that Congress can levy taxes to enable it to pay off American debt as well as for the defense and general welfare of American citizens.

7 0

3 years ago

The driver of any vehicle about to enter a freeway or highway must yield the __________ to all traffic.