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]
2 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]2 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
Obeying the law is what kind of <br> Ethical Behavior
Lapatulllka [165]

Answer:

Basic level

Explanation:

Obeying the law is the basic demand of constitution of any country from its citizens. It is basically following the general rules of being the citizen of country.

Ethical behavior is about being morally right in your actions, it is no where defined properly what is ethical, sometimes even unethical behavior does not count in illegal behavior.

As for example if my colleague asks for a pen, and I do not help him, even though I have extra pen, is unethical behavior but it is not illegal.

But since it is unethical it is not correct morally, although all the legal actions are ethical.

4 0
3 years ago
Your friend says to you, "America is one of the fairest countries in the world because we have a democracy, and we are able to v
professor190 [17]

Answer and explanation:

Democracy is the state in which individuals of a community make decisions collectively being the interest of most people prioritized. A pure form of democracy is difficult to find even in countries that highly promote equal rights such as the United States.

The Democracy Index is a composite that measures democracies in 167 countries scoring them from 1 to 10 (10 is the highest grade). In 2019, The U.S. was positioned in the 25th place in the list of most democratic countries. <em>Norway </em>is placed in the first place followed by <em>Iceland</em>.

In such a case, <em>we should recommend our friend to take a look at the Democracy Index where he or she will find out that the U.S. is not one of the fairest nations in the world. Its government functioning and political participation are aspects where the U.S. needs improvement.</em>

6 0
3 years ago
State the following statement is True or False, and explain why. Thor who lives in Montana purchased a car produced in Japan for
Likurg_2 [28]

Answer:

false

His purchase left GDP unchanged

Consumption of non durables would increase.

Also, net export would decrease.

these effects would cancel out

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

3 0
2 years ago
Concord Company uses the FIFO method to compute equivalent units. It has 4000 units in beginning work in process, 20% complete a
Andrej [43]

Answer:

67,840 units

Explanation:

The computation of the equivalent units for material by using the FIFO method is shown below:

<u>Particulars       Unit       Percentage completion   Equivalent units</u>

Opening

inventory       4,000 units     50%                          2,000 units

Completed

& transferred

(67,000

- 5,800)        61,200 units    100%                         61,200 units

Closing  

inventory      5,800 units      80%                         4,640 units

Total                                                                       67,840 units

8 0
3 years ago
What function is money serving when you buy a ticket to a movie?
ser-zykov [4K]
It acts as the Currency
7 0
3 years ago
Other questions:
  • Chelsea purchased her monthly grocery requirements instead of soccer game tickets for the championship match she wanted to see.
    6·2 answers
  • Sandhill Inc. has the following information related to an item in its ending inventory. Packit (Product # 874) has a cost of $76
    5·1 answer
  • Bradley Company purchased a machine for $34,000 on January 1, 2017. It depreciates the machine using the straight-line method ov
    5·1 answer
  • Shiloh canvasses for her favorite politicians. she has discovered that asking someone to do a small favor makes it easier to con
    7·1 answer
  • Bankston Corporation forecasts that if all of its existing financial policies are followed, its proposed capital budget would be
    11·1 answer
  • Which of the following is a way to buy stocks ?
    14·2 answers
  • The part of a stock's return that is systematic is a function of which of the following variables?
    7·1 answer
  • True or false: a manager's self-appraisal is the most accurate source of information regarding leadership strengths and weakness
    11·1 answer
  • In the early 2000s, easy credit made real estate the investment of choice in the United States. By the end of the decade, howeve
    9·1 answer
  • Those who oppose preferential hiring practices tend to argue that the only standard for awarding jobs is?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!