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jenyasd209 [6]
3 years ago
12

You are evaluating a growing perpetuity investment from a large financial services firm. The investment promises an initial paym

ent of $24,800 at the end of this year and subsequent payments that will grow at a rate of 3.5 percent annually. If you use a 9 percent discount rate for investments like this, what is the present value of this growing perpetuity
Business
1 answer:
vovikov84 [41]3 years ago
6 0

Answer:

PV= $450,909.1

Explanation:

Giving the following information:

Cash flow (Cf)= $24,800

Growth rate (g)= 3.5%

Discount rate (i)= 9%

<u />

<u>To calculate the present value, we need to use the following formula:</u>

PV= Cf / (i - g)

PV= 24,800 / (0.09 - 0.035)

PV= 24,800 / 0.055

PV= $450,909.1

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I believe it is A if not then B hope this helps
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A company: purchased 100 units for $20 each on January 31, purchased 100 units for $30 on February 28, and sold 150 units for $4
igomit [66]

Answer:

Ending inventory as at 31 December = $1500

Explanation:

First-In-First-Out is a method of inventory valuation whereby the stock that comes in first, is used first. This is common for inventory consisting of perishables, such as vegetables where if not used/sold soon, it would be wasted.

Jan 31: Purchases = $20 x 100 units = $2000

<em><u>Remaining inventory:</u></em>

$20 x 100 units = $2000

Feb 28: Purchases = $30 x 100 units = $3000

<em><u>Remaining inventory:</u></em>

$20 x 100 units = $2000

$30 x 100 units = $3000

<em><u>Sales = 150 units x $45:</u></em>

$20 x 100 units = $2000

$30 x 50 units = $1500

<em><u>Remaining inventory</u></em>

200 - 150 = 50 units x $30 = $1500

<em>Thus,</em>

Cost of Goods Sold = $3500 ($2000 + $1500)

Ending inventory as at 31 December = $1500

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3 years ago
The value proposition for the AARP brand is seen in what kinds of benefits for the members?
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Ordinary repairs meet all of the following criteria except: Multiple Choice Are expenditures to keep an asset in good operating
spin [16.1K]

Answer:

The correct answer is letter "B": Extend the useful life of an asset beyond its original estimate by several years.

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The statement would be:

Date: October 31, 2019

Net Income                $680,700

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3 years ago
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