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BartSMP [9]
3 years ago
13

What is the present value of a perpetuity of $20,000 per month, if the first cash flow will be received exactly nine months from

now, and the stated rate is 12% APR compounded monthly
Business
1 answer:
Fudgin [204]3 years ago
4 0

Answer:

$1,828,679.65

Explanation:

The computation of the present value of the perpetuity is shown below;

The Present value of the perpetuity is

But before that as on the start of the perpetuity is determined using the formula,

= Perpetuity Amount ÷ Monthly rate

= $20,000 ÷ 1%

= $2,000,000

Now  

Present value today is

= Present value of perpetuity as on the start of the perpetuity ÷ (1 + Monthly rate)^Months

= $2,000,000 ÷ (1 + 1%)^9

= $2,000,000 ÷ 1.093685273

= $1,828,679.65

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Which of the following is not included in the GDP?
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C. Non-market activity

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3 years ago
​Brown's, a local​ bakery, is worried about increased costs particularly energy. Last​ year's records can provide a fairly good
Luba_88 [7]

Answer: a. 12.5%

b. -16.67%

c. 5.88%

Explanation:

a. Energy Change will be:

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Now : (1500 × 12)/2800

= 6.42857 loaves/BTU

Percent Change will be:

= [6.42857 - 5.625]/6.42857 × 100

= 12.5%

b. Capital productivity increase will be:

= Production x 12)/Capital investment

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Percent Change:

= (56.25 - 52.94/56.25) × 100

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6 0
3 years ago
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