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Butoxors [25]
3 years ago
5

A company would like to invest in a capital budget project that will be worth $500,000 in 40 years. How much should this company

invest today, assuming an average inflation rate of 2% and a 10% annual return
Business
1 answer:
egoroff_w [7]3 years ago
8 0

Answer:

Company needs to invest amount = $23000

Explanation:

Below is the calculation of the present value:

Given the future value, FV = $500000

Number of years, n = 40 years

Real interest rate = 10% - 2% = 8%

Present value = ?

Present value = FV (P/F, r, n)

Present value = $500000 (P/F, 8%, 40)

Present value = $500000 (0.046)

Present value = $23000

Company needs to invest amount = $23000

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The argument advanced by Milton Friedman for adopting a monetary growth rule is that A. the growth rate of M1 has been unstable.
Y_Kistochka [10]

Answer:

C. active monetary policy potentially destabilizes the economy.

Explanation:

5 0
2 years ago
Cyber Security Systems had sales of 4,600 units at $65 per unit last year. The marketing manager projects a 30 percent increase
scoray [572]

Answer:

Net dollar sales projection for this year =   516,971.00

Explanation:

<em>Projected sales volume </em>

130%× 4,600= 5,980units

<em>Project selling price</em>

=140% × $65

= $91

<em>Total sales value </em>

= $91 × 5980units

=  $ 544,180.00

<em>Net dollar sales projection</em>

=  Total sales value -  Returned merchandise

= 544,180.00 - (5%  × 544,180.00 )

=  $ 516,971.00

Net dollar sales projection for this year =   516,971.00

3 0
3 years ago
David saves money from his teaching job to buy a new boat when he retires in 20 years. The boat will cost $30,000. He has $12,00
Aliun [14]

Answer:

Invest at a minimum of 7.5% annual simple interest

Explanation:

Given the goal of purchasing a boat that will cost $30,000 in 20 years, David needs to earn an interest computed below on his investment in the savings account.

Interest required = 30,000 - 12,000

= 18,000

Therefore the minimum rate of interest that will achieve this goal,

= Principal * rate * time = target amount

= 12,000 * R * 20 years = 18,000

= R = 18,000/(12,000*20) = 0.075 = 7.5%.

In addition, David could also continue his saving from his teaching job. This will reduce the minimum investment return required to achieve the goal.

6 0
3 years ago
PLLZZ HELLLP DUE IN 1 MINNNN
Helen [10]

Answer:

A is the correct answer I think hope this helps

5 0
3 years ago
Read 2 more answers
The case study method is most effective in:A. Proving out theoryB. Narrowing the gap between theory and practiceC. Simulating re
tino4ka555 [31]

Answer:

Letter B is correct. <u>Narrowing the gap between theory and practice.</u>

Explanation:

Case study is an investigative methodological approach applied to simple or applied social sciences. It is carried out through the use of different qualitative methods for the collection of data and information relevant to the foundation of the research. The qualitative method is the most appropriate in a case study, as it occurs through subjective and not substantially statistical means of in-depth analysis of relevant factors in an event, an individual, an institution, a group and others.

Case studies can be classified as:

  • exploratory,
  • descriptive, or
  • explanatory.

So it is correct to state that the purpose of the case study is to reduce the difference between theory and practice. Because the analysis of the information collected and the variables and patterns found will provide subsidies for the discussion and better understanding and reasoning between what happens between the theory and the practice analyzed in the case study.

3 0
3 years ago
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