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Nataliya [291]
2 years ago
14

You are considering an investment that will pay you and your heirs $5,000 at the end of each year forever. The price of the inve

stment is $72,000. Given your expertise with time value from Finance 3403, you are concerned that this price may not be fair. If you can earn 8% annually on your money, what would you consider to be a fair price for the investment?
Business
1 answer:
Dmitry [639]2 years ago
8 0

Answer:

Fair price of the insurance policy is $62,500.

Explanation:

We have given that an investment that will pay you and your heirs $5000

So the annual cash flow = $5,000

It is given that you can earn 8 % annually on your money

Required rate of return = 8%

We have to find the fair price for the investment

Price of this annuity =\frac{5000}{0.08}=$62500

Fair price for the investment is $62,500.

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Answer:

<u>B. extended product line length</u>

Explanation:

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3 years ago
Opera Corp uses the periodic inventory system. For the current month, the beginning inventory consisted of 7,200 units that cost
Kryger [21]

Answer:

$159,057

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The computation of cost of goods sold is shown below:-

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Therefore for computing the cost of goods sold for the month we simply applied the above formula.

3 0
2 years ago
A(n)_____ is a structured review of specific quality management activities that help identify lessons learned that could improve
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A Quality Audit is a structured review of specific quality management activities that help identify lessons learned that could improve performance on current or future projects.

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3 0
2 years ago
Caroline is an artist. She purchases canvas, paints, brushes, and accessories for $75. She sells orn of her original paintings t
liberstina [14]

Answer:

Value added to the gallery will be $3000

So option (C) will be correct answer

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And after that her painting was sold to an art lover at cost of $4500

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