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nikdorinn [45]
3 years ago
9

An investment offers $6,700 per year for 15 years, with the first payment occurring one year from now. a. If the required return

is 6 percent, what is the value of the investment today
Business
1 answer:
VARVARA [1.3K]3 years ago
8 0

Answer: $65070

Explanation:

Based on the information given in the question, the value of the investment today will be:

= amount × pvaf , 1/(1+ rate )^t

= 6700 × pvaf (1/1+6%) ^15

= 6700 × pvaf (1/1.06)^15

= 6700 × 9.712

= $65070

Therefore, the value of the investment today is $65070

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The current sections of Culver Corporation's balance sheets at December 31, 2021 and 2022, are presented here. Culver Corporatio
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Net Cash Provided by Operating Activities is $286,000

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            For the year ended December 31, 2022

<em>Cash Flow from Operating Activities</em>

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<em></em>

<em>Adjustment to reconcile net income to</em>

<em>net cash provided by operating activities</em>

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Decrease in Accounts Receivables       $13,500

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Net Cash Provided by Operating Activities           <u>$286,000</u>

4 0
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