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Dennis_Churaev [7]
3 years ago
9

Compute the present value of a $2,500 deposit in year 4 and another $10,000 deposit at the end of year 8 if interest rates are 1

5 percent.
a. $4,211.26
b. $4,572.19
c. $4,698.40
d. $4,901.57
Business
1 answer:
zavuch27 [327]3 years ago
6 0

Answer:

Total PV= $4,698.4

Explanation:

Giving the following information:

Deposit 1:

FV= $2,500

n= 4 years

Deposit 2:

FV= 10,000

n= 8

<u>To calculate the present value, we need to use the following formula:</u>

PV= FV / (1 + i)^n

<u>Deposit 1:</u>

PV= 2,500 / (1.15^4)

PV= 1,429.38

<u>Deposit 2:</u>

PV= 10,000 / (1.15^8)

PV= 3,269.02

Total PV= $4,698.4

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A townhouse is purchased for $475,000. If the transfer tax is $2.00 on the first $1,000. and $0.10 for each additional $100., ho
masya89 [10]

Based on the information given the amount of the transfer taxes is $476.

Using this formula

Total transfer tax=[(Purchased price+ First transfer tax)×(Additional tax)]+Transfer tax

Let plug in the formula

Total transfer tax=[($475,000-$1,000)×($0.10/$100)]+$2

Total transfer tax = ([$474,000 x .001] + $2)

Total transfer tax=$474+$2

Total transfer tax=$476

Inconclusion the amount of the transfer taxes is $476.

Learn more here:brainly.com/question/17122829

5 0
3 years ago
You are going to invest in Asset J and Asset S. Asset J has an expected return of 11.2 percent and a standard deviation of 52.2
andrey2020 [161]

Answer:

7.98%

8.61%

Explanation:

wj = [(0.172)² - 0.50x0.522x0.172)/((0.522)²+(0.172)²-2x0.50x0.522x0.172]

= - 0.07211

Expected returns

= (-0.07211)x 0.112+(1-(-0.07211))x0.082

= 7.98367%

Standard deviation

=√((-0.07211)x(0.522²+((1-(-0.07211))x0.172)²+2x(-0.07211)x(1-(-0.07211))x0.522x0.172x0.5)

This gives us a standard deviation of

= 8.61054%

The expected return = 7.98%

The standard deviation = 8.61%

8 0
3 years ago
considering a project that is equally as risky as the firm's current operations. The firm has a cost of equity of 15.4 percent a
Svetllana [295]

Answer:

$9230.70

Explanation:

Debt ratio = Debt equity ratio / (Debt equity ratio+1) = 0.46/(0.46+1) = 0.46/1.46

Equity ratio = 1/(Debt equity ratio+1) = 1/(0.46+1) = 1/1.46

WACC = 15.4%×1/1.46+8.9%×(1-21%)×0.46/1.46 = 12.76%

Net present value = 20000/(1+12.76%) + 30000/(1+12.76%)^2 + 40000/(1+12.76%)^3 - 60000 = $9230.70

3 0
3 years ago
A change in the asset turnover ratio from 2.0 to 1.8 would indicate: ____________
dem82 [27]

The decline in the value of the asset turnover ratio indicates an unfavorable trend in using assets to generate sales.

<h3>What is the asset turnover ratio?</h3>

The asset turnover ratio is a financial ratio known as the activity ratio. It measures the efficiency with which a firm carries out its operations. The higher the asset turnover ratio , the more efficient the firm is and the lower the ratio, the less efficient the firm is.

The asset turnover ratio = revenge / average total ratio

To learn more about financial ratios, please check: brainly.com/question/26092288

7 0
3 years ago
Mena, a female, and Neil, a male, are employees of Operational Processes Corporation. Mena regularly e-mails sexually explicit i
anyanavicka [17]

Answer:

A. hostile-environment harassment

Explanation:

A hostile-environment harassment is one where a worker's attitude in the workplace is such that it makes the workplace uncomfortable or non-conducive for another worker. This harassment is usually as a result of discrimination of any type; from age to gender, color, religion, sexual orientation, etc

Hostile-environment harassment can be considered illegal when it becomes a condition for the worker to remain employed or when the workplace environment has become intimidating or non-conducive for the other worker.

I hope this helps

8 0
3 years ago
Read 2 more answers
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