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stich3 [128]
2 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]2 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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The following is a December 31, 2021, post-closing trial balance for Almway Corporation.
kozerog [31]

Answer:

Almway Corporation

Classified balance sheet as at December 31, 2021.

ASSETS

<u>Non - Current Assets</u>

Land                                                                                            $65,000

Land Held for Sale                                                                     $25,000

Buildings                                                                $420,000

Accumulated depreciation—buildings                ($100,000) $320,000

Equipment                                                               $110,000

Accumulated depreciation—equipment                $60,000    $50,000

Patent (net)                                                                                  $10,000

Investment in equity securities                                                  $30,000

Total Non- Current Assets                                                       $500,000

<u>Current Assets</u>

Inventory                                                                                   $200,000

Accounts receivable                                                                   $60,000

Prepaid insurance (for the next 9 months)                                  $9,000

Short term Investment in equity securities                               $80,000

Cash                                                                                             $45,000

Total Current Assets                                                                 $394,000

TOTAL ASSETS                                                                        $894,000

EQUITY AND LIABILITIES

LIABILITIES

Non - Current Liabilities  

Notes payable                                                                          $100,000

Bonds Payable                                                                         $240,000

Total Non - Current Liabilities                                                 $340,000

Current Liabilities

Accounts payable                                                                      $75,000

Notes payable                                                                            $30,000

Interest payable                                                                         $20,000

Total Current Liabilities                                                            $125,000

TOTAL LIABILITIES                                                                  $465,000

EQUITY

Common stock                                                                        $300,000

Retained earnings                                                                    $129,000

TOTAL EQUITY                                                                        $429,000

TOTAL EQUITY AND LIABILITIES                                         $894,000

Explanation:

A Balance Sheet contains Balances in Assets, Liabilities and Equity. A Classified Balance Sheet then Shows different categories and amounts for these Account Balances as shown above.

4 0
2 years ago
2. An employee has filed a discrimination lawsuit, because although fully qualified, he was not hired for a
romanna [79]

Answer:

The McDonnell Douglas test will be applied

Explanation:

i searched each answer to see if it would apply with the question and when i finished the quiz it said i got it right

4 0
3 years ago
3. Which answer best shows all of the
kogti [31]

Answer:

liquidity, risk, time, and return

Explanation:

For choosing an investment, following things need to be considered

1. Liquidity : It means how the asset is converted into cash it shows the how an asset purchased or sold in the market without varies in the price

2. Risk: It is a possibility where it can be less than the predicted gain or the loss instead of profit

3. Time: How much time is required to have a profit

4 Return: The amount which you have invested in return how much it comes.

It could be measured by dividing the net profit from the net worth

Therefore the above is the answer

7 0
2 years ago
Read 2 more answers
Novak Corp. has 7400 shares of 6%, $50 par value, cumulative preferred stock and 148000 shares of $1 par value common stock outs
wlad13 [49]

Answer:

The dividends received by the preferred stockholders in 2020 are $30400.

Explanation:

The cumulative preferred stock is the form of preferred stock that accumulates or accrues dividends in case the company does not pay or partially pay dividends to preferred stock in a particular year. This means that the dividends are accrued and the company will need to pay these dividends first in the future whenever it declares dividends.

The total dividends per year on preferred stock is,

Preferred Stock dividends = 50 * 0.06 * 7400 = $22200 per year

The preferred stock dividend that was accrued at the end of 2019 after the dividend payment of $14000 is,

Accrued dividends - Preferred stock = 22200 - 14000 = $8200

In 2020 the company will need to pay this accrued dividend along with the dividend for 2020 on preferred stock. Thus, in 2020 the preferred stock holders will receive dividends of,

Preferred stock dividend to be paid in 2020 = 8200  +  22200  = $30400

8 0
3 years ago
Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these de
Mashutka [201]

Explanation:

Note, for private spending, <em>consumption</em> refers to purchases usually made for present needs, while <em>investment</em> refers to purchases that may provide. For government spending, <em>consumption </em>refers to purchase made to care for the immediate welfare or needs of those governed without any monetary benefits, while <em>investment </em>purchases are done with the perceived future benefits in mind.

<u>Private Spending</u>

  • Laundromats buying washing machines =  Investment
  • People buying houses  = Investment
  • People buying newspapers  = Consumption
  • People buying food = Consumption

<u>Government Spending</u>

  • Payment for public safety employees = Investment
  • Building hospitals = Investment
  • Building roads = Investments
  • Buying military equipment = Investment
4 0
2 years ago
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