1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
What advantages do chain stores have over individual stores?
Wewaii [24]
Can provide services that specialize in one area
6 0
4 years ago
What collective name do we refer to: natural resources, labor, capital, education or know-how?
pshichka [43]

Answer:

Factors of production

Explanation:

The general name is factors of production. They are also the 'inputs' in the production process.

The factors of production are combined or put together for the productions of goods and services to happen.  The four factors include land, which represents the natural resources in this case.

<u>Land</u> refers to the space used to set up a business, and fertile lands used for agriculture, minerals, oil and gas, forest, and other natural resources.

<u>Labor </u>is the human input in production. It involves workers' knowledge, skills, strength, and time spent on the production process.

<u>Capital </u>is the money and assets used to start and maintain the business operation. It includes plant and machinery, equipment, building, factories used in making products for sale.

<u>Know-how </u>refers to entrepreneurship. It is the skills, willingness, and ability to put together and manage the other factors to produce goods.

3 0
3 years ago
40 POINTS!! Decorative text available to include in a document is known as _____.
enyata [817]
4. word art, I believe is the correct answer
5 0
3 years ago
Read 2 more answers
Which component within a corporation elects the board of directors?
dmitriy555 [2]

Answer:

A. shareholders

Explanation:

i took the quiz sorry i did not do it sooner

3 0
3 years ago
Which of the following countries is on the best terms with North Korea and has demonstrated this in their treatment of 2010 even
AysviL [449]
Hi, 

The answer is China

Over time, China has demonstrated their support to North Korea. In 2010 North Korea attacked with artillery the island of Yeonpyeong, where there were civilians, and South Korea responded by attacking North Korea's artillery. 

Tensions scaled, and although most world governments condemned the attack, China's Ministry of Foreign Affairs didn't explicitly condemn the bombarding by North Korea and only made a call to peace in the Korean Peninsula. 
4 0
3 years ago
Other questions:
  • Kilgore Company experienced the following events during its first accounting period. (1) Issued common stock for $5,000 cash. (2
    13·1 answer
  • Which standard is for safeguarding of phi specifically in electronic form (ephi)?
    6·1 answer
  • Mike Samson is a college football coach making a base salary of $646,800 a year ($53,900 per month). Employers are required to w
    12·1 answer
  • Ben seems to have the Midas touch. He can recognize opportunity where others see only problems. His focus is on creating solutio
    10·1 answer
  • Monic, a college professor, makes 30 photocopies of a passage from a famous novel and passes the article out to her students. Th
    8·1 answer
  • James Smith has worked for Perfect Transmission Installers for eight years. His annual base salary is $52,000. For overtime hour
    15·1 answer
  • A synchronous manufacturing system does not have excess capacity throughout the system, except for the bottleneck.
    11·1 answer
  • Major operations and supply planning activities can be grouped into categories based on the relevant time range of the activity.
    8·2 answers
  • Payment History and Total Debt, together, comprise 65% of your score. Why do you think it's so high?
    5·1 answer
  • The price of a good rises from $4.00 to $4.50, and as a result, total revenue falls from
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!