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
Nostrana [21]
4 years ago
7

Mongoose Trucking just signed a $3.8 million contract. The contract calls for a payment of $1.1 million today, $1.3 million one

year from today, and $1.4 million two years from today. What is this contract worth today at a discount rate of 8.7 percent?
Business
1 answer:
wlad13 [49]4 years ago
5 0

Answer:

The present value or the worth of the contract today is 3.48 million

Explanation:

The present value of the contract can be calculated using the following formula where we will dicount back the cash flows to calculate the present value.

The present value = CF1 / 1+discount rate + CF2 / (1+discount rate)² +...

The present value = 1100000 + 1300000 / 1.087 + 1400000 / 1.087² = $3480817.37 or 3.48 million

The present value or the worth of the contract today is 3.48 million

You might be interested in
WILL MARK BRAINLIEST!!!!!
BabaBlast [244]
The answer is C.

The market has not reached equilibrium and a price adjustment will help prevent a shortage.
3 0
3 years ago
Read 2 more answers
Most Internet reference sites are free to use. T/F
Nutka1998 [239]

the answer on e2020 is true

7 0
3 years ago
Read 2 more answers
GIVE ME THE IDEAS FROM THIS CASE AND WHAT WE HAVE LOOKED AT IN THE PICTURE!!
irina [24]

Answer:

Tobago is effect Corona various

Is very harmful

I only have few ideas

I hope you like it

8 0
3 years ago
On December 31, 2018, a company had assets of $29 billion and stockholders' equity of $22 billion. That same company had assets
Kisachek [45]

Answer:

0.69

Explanation:

From the question above on December 31, 2018 a company has an assets of $29 billion and stockholders equity of $22 billion.

On December 31, 2019 the same company recorded an assets of $55billion and stockholders equity of $17billion

Inorder to calculate the debt-to-assess ratio the first step is to find the amount of liabilities

Liabilities= Assets-Stockholders equity

Assets= $55 billion

Stockholders equity= $17 billion

= $55billion-$17billion

= $38 billion

Therefore, the debt-to-assets ratio can be calculated as follows

Debt-to-assets ratio= Total liabilities/Total Assets

= $38 billion/ $55 billion

= 0.69

Hence on December 31, 3019 the debt-to-assets ratio is 0.69

5 0
4 years ago
1. Colllson repalr shops must manually clean
ASHA 777 [7]
A.eyewearrrrrrrrrrrrrrrrrrr
3 0
4 years ago
Other questions:
  • 1. Name a product/service that you purchase, and the demand is inelastic. Explain.
    8·1 answer
  • States can reduce the cost of providing services by using web technologies to serve their stakeholders.
    10·1 answer
  • pple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devic
    9·1 answer
  • Find the present worth in year 0 of $60,000 in year 3 and amounts increasing by 15% per year through year 10 at an interest rate
    12·1 answer
  • Brennan Corporation's WACC is 10.00%, its end-of-year free cash flow (FCF1) is expected to be $75.0 million, the FCFs are expect
    13·2 answers
  • An investor owns a 10 unit duplex complex containing 20 apartments. Each apartment in the complex rents for $1500 per month. Las
    8·1 answer
  • When investors purchase ________ stock, they receive a priority claim in the payment of dividends, as well as assets, if the bus
    5·2 answers
  • Question 1 of 10
    8·1 answer
  • Phyllis graduated with a degree in chemistry and started her career as a laboratory scientist with Dow Chemical. While at Dow, s
    11·1 answer
  • How does a company calculate the overall demand for a product?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!