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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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In this case, the following priority would go to the mechanic's lien from the the general contractor (as a result from court order), then the mortgage, and finally the other creditors.

4 0
3 years ago
__________ is not a technology company but used technology to revamp the business process of renting movies.
zmey [24]

Answer:

Netflix

Explanation:

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6 0
3 years ago
Does anybody now how to do math just commect if you can
Pepsi [2]

Answer:

Yes Yes I do what grade though? and type

Explanation:

3 0
3 years ago
Read 2 more answers
Kansas Enterprises purchased equipment for $72,500 on January 1, 2021. The equipment is expected to have a five-year service lif
Papessa [141]

Answer:

Annual depreciation= $12,970

Explanation:

Giving the following information:

Kansas Enterprises purchased equipment for $72,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $7,650 at the end of five years.

To calculate the depreciation expense under the straight-line method, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (72,500 - 7,650)/5

Annual depreciation= $12,970

7 0
3 years ago
The decision making process is best when?
valentina_108 [34]

Answer:

when u have 2 decide between 1 and another or when u r taking a test then u have make a decision

Explanation:

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