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stich3 [128]
3 years ago
5

An investment is expected to yield $300 in three years, $500 in five years, and $300 in seven years. What is the present value o

f this investment if our opportunity rate is 5%
Business
1 answer:
Serhud [2]3 years ago
5 0

Answer:

Total PV= $864.11

Explanation:

Giving the following information:

Cash flows:

Cf3= $300

Cf5= $500

Cf7= $300

Opportunity rate= 5%

<u>To calculate the total present value, we need to use the following formula on each cash flow:</u>

PV= FV/(1+i)^n

PV1= 300/(1.05^3)= 259.15

PV2= 500/(1.05^5)= 391.76

PV3= 300/(1.05^7)= 213.20

Total PV= $864.11

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Comparative: D.

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Comparative is about opportunity cost whilst absolute is about the quantity productivity efficiency
8 0
3 years ago
Find the present value of $19,000 in 11 months at 5.1% interest
dem82 [27]

Answer:

$19,886.396

Explanation:

Given :

Interest rate = 5.1% = 5.1

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The present value of 19000 in 11 months at 5.1% interest Can be obtained using the relation:

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3 years ago
QUESTION 02<br> What is the meaning of the following words:<br> 2.1.1 Shackled.(1)
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8 0
2 years ago
indicators that the local currency is also the functional currency include all of the following except:
Alchen [17]

Indicators that the local currency is also the functional currency include all of the following except the parent typically provides the financing or provides a guarantee.

A functional currency is one that is utilized in the main economic setting in which a company conducts business. This is the setting in which an entity generates and spends money most frequently. When defining the functional currency of an entity, the following key considerations should be taken into account:

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6 0
1 year ago
When putting away pallets of freight into multiple depth drive-in bays, what level of racking should be stocked first, second, a
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7 0
3 years ago
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