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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 entertainment industry in the united states is dominated by viacom, disney, and time warner. these companies operate in what
liq [111]

The answer is <u>"Oligopoly".</u>


Oligopoly is a market structure with few firms, none of which can shield the others from having huge impact. The focus proportion estimates the piece of the overall industry of the biggest firms. An imposing business model is one firm, duopoly is two firms and oligopoly is at least two firms. There is no exact maximum breaking point to the quantity of firms in an oligopoly, however the number must be low enough that the activities of one firm altogether impact the others.  

8 0
3 years ago
My pension plan will pay me $10,000 once a year for a 10-year period. The first payment come in at the end of 6th year from now.
Gala2k [10]

Answer:

0.75163

Explanation:

So, we are given the following data or parameters or information which is going to help us in solving the question above;

=> Payment for the pension = $10,000 once a year for a 10-year period.

=> Time for the first payment = ''end of 6th year from now''.

=> Type of Pension plan for immunization = " 5-year zero-coupon bond and 20-year zero coupon bond to construct the immunization position''

=> Interest rate = 10%.

Therefore, the weight on the 5-year zero-coupon bond can be calculated as follows:

Duration = (Weight × 5) + [( 1 - weight) × 20].

=> 5b + 20 - 20b = 8.7255.

=> b = 0.75163.

Therefore, the weight on the 5-year zero-coupon bond is 0.75163.

The weight on the 20- year zero-coupon bond = 1 - 0.75163= 0.2884.

6 0
3 years ago
A nurse is a part of what career pathway?
umka21 [38]

Support...............

3 0
3 years ago
You want to purchase your first house. A conventional mortgage will require a credit score of approximately 630. Your credit sco
Oliga [24]

Answer:

1.1 years

Explanation:

The currents credit score is 560

the credit score is increasing by 12% per year is

=12% of 560

=12/100 x 560

=0.12 x 560

=67.2

The required increase is 70 points

the years it will take = 70 points /67.2 points

=1.041  years

= 1 year and one month

5 0
3 years ago
The median always falls between the mean and the mode.<br> a. True<br> b. False
Dafna1 [17]

Answer:

The mode is always less than the median, which is less than the mean, if the data distribution is skewed to the right .

3 0
3 years ago
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