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statuscvo [17]
2 years ago
11

Ransport Company has made an investment in another company that will guarantee it a cash flow of $37,250 each year for the next

five years. If the company uses a discount rate of 15 percent on its investments, what is the present value of this investment?
Business
1 answer:
ExtremeBDS [4]2 years ago
5 0

Answer:

PV= $124,867.78

Explanation:

Giving the following information:

Cash flow= $37,250

Discount rate= 15%

Number of periods= 5 years

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

PV= A*{(1/i) - 1/[i*(1 + i)^n]}

PV=  37,250*{(1/0.15) - 1/[0.15*(1.15^5)]}

PV= $124,867.78

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Finley Corporation had income from continuing operations of $10,600,000 in 2014. During 2014, it disposed of its restaurant divi
gulaghasi [49]

Answer:

The answer is "$1.01"

Explanation:

Revenue from operations $10,600,000

Operations discontinued

Loss of discontinued operation

Division of restaurant (net of tax)

$315,000

Loss of diner disposal

division (net of tax)

189,000

504,000

$10,096,000 in net income

Start sharing income

Revenue from operations $1.06

Net of tax (0.05)* Discontinued transactions

$1.01 Net Revenue

3 0
2 years ago
A(n) ________ program includes plans to help employees cope with stress, burnout, substance abuse, health problems, and family i
MrRissso [65]

Answer: Employee assistance program.

Explanation:

Employee assistance programs are programs designed by companies to: counsel, advise, follow up, and assist employees on personal or job related challenges they may be facing. The employee assistance programs are designed to ensure that the employees are in the best state of health in all areas.

3 0
3 years ago
Suppose the United States can produce either 90 apples and 20 oranges or 80 apples and 30 oranges. What is the opportunity cost
Tju [1.3M]

Answer: The opportunity cost of producing 1 apple will be 1 orange.

Explanation:

Opportunity cost is defined as the loss or cost of another alternative when another alternative is being chosen by an economic agent.

In this scenario, the opportunity cost of producing every additional apple will be 1 orange due to the fact that as there's an increase in the production of apple from 80 to 90, there'll be a reduction in the production of orange from 30 to 20.

This indicates that for the increase of 10 apples, there's a reduction of 10 oranges which implies that an increase of 1 apple brings about a reduction by 1 orange.

5 0
3 years ago
If the average propensity to consume is 0.75, and the marginal propensity to consume is 0.70, if income rises by $4,000, consump
LUCKY_DIMON [66]

Answer:

$2,800

Explanation:

The computation of the increase in consumption is shown below:

= Marginal propensity to consume × rise in income

= 0.70 × $4,000

= $2,800

Hence, the consumption would be increased by $2,800

We simply applied the above formula i.e. marginal propensity to consume is multiplied with the rise in income so that the correct answer could come

7 0
3 years ago
Which of the following is a service-based business? (Select the best answer.)
Talja [164]
A house cleaning company 
5 0
3 years ago
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