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
Stels [109]
3 years ago
5

Project 1 requires an original investment of $125,000. The project will yield cash flows of $50,000 per year for 10 years. Proje

ct 2 has a computed net present value of $135,000 over an eight-year life. Project 1 could be sold at the end of eight years for a price of $8,000. (a) Using the present value tables in Exhibits 2 and 5, determine the net present value of Project 1 over an eight-year life, with residual value, assuming
Business
1 answer:
mario62 [17]3 years ago
6 0

Answer: $126,613

Explanation:

Net Present value of Project A is:

= Present value of $50,000 annuity + Present value of residual value - Initial investment

Present value of $50,000 annuity:

= 50,000 * ( 1 - ( 1 + rate)^-number of periods) / rate

= 50,000 * ( 1 - ( 1 + 12%) ⁻⁸) / 12%

= $248,382

Present value of residual value:

= 8,000 / ( 1 + 12%)⁸

= $3,231

Net present value

= 248,382 + 3,231 - 125,000

= $126,613

You might be interested in
Your coworker makes a comment about a blouse you are wearing. The comment makes you very uncomfortable. This is an example of:
dimulka [17.4K]
B. harassment. you cowork has no business commenting on your clothes
6 0
2 years ago
kenny is considering creating a testamentary trust. which of the following is not a feature of a testamentary trust? a.creation
bonufazy [111]

A testamentary trust could be established to oversee the charitable asset distribution in accordance with the decedent's desires.

A Testamentary Trust: What Is It?

A trust that is created in line with the directions in a last will and testament is known as a testamentary trust. A trust is a fiduciary arrangement that enables a trustee—a third party—to manage resources on behalf of the trust's beneficiaries.

A person's instructions for creating a testamentary trust may be included in their will, allowing the trustee to disperse their assets to the designated beneficiaries. A testamentary trust, however, is not established until the person has gone away. Additionally, a testamentary trust may appear more than once in a will.

Learn more about Testamentary Trust here:

brainly.com/question/28400559

#SPJ4

4 0
1 year ago
A parents' group in a small town formed an unincorporated association to run a little league soccer team. Alex was elected presi
Keith_Richards [23]

Answer:

The only person liable for the goods purchased is Alex because he was the person that made the purchases.

Explanation:

Alex is to be held liable because he was authorized to make the purchase. A single member of an unincorporated association is liable for the debts of the organization if they are given authorization to execute a specific act which is seen in this case here.

6 0
3 years ago
The average cost of a single sales call to a potential b2b buyer in the u.s. is expensive and could cost about:
Colt1911 [192]
<span>A single sales call to a potential B2B buyer in the United States could cost about $400. A B2B sales call is a business to business sales call. The closing of a sale can be hit or miss, but it is said that any contact with the buyer can be helpful later.</span>
5 0
3 years ago
a perpetual bond with a par value of $1,000 and a semiannual coupon has a yield to maturity of 5.20% and a current price of $1,0
ycow [4]

Rate = 5.2% / 2 = 2.6%

Price = Semi annual coupon / Yield

1,055 = Semi annual coupon / 0.026

Semi annual coupon = 27.43

Annual coupon = 27.43 * 2 = 54.86

Current yield = (Coupon / price) * 100

Current yield = (54.86 / 1,055) * 100

Current yield = 5.20%

A perpetual bond, also regarded colloquially as a perpetual or perp, is a bond without a maturity date, consequently allowing it to be handled as equity, not as debt. Issuers pay coupons on perpetual bonds all the time, and they no longer ought to redeem the most important. Perpetual bond coin flows are, consequently, the ones of perpetuity.

A perpetual bond is a bond not using a maturity date that isn't always redeemable however can pay a regular circulate of interest for all time.

Maturity or maturity date is the date on which the very last fee is due on a loan or other financial device, consisting of a bond or term deposit, at which factor the major is because of being paid. Most devices have a hard and fast maturity date which is a particular date on which the device matures.

Learn more about Perpetual bonds here: brainly.com/question/14685796

#SPJ4

4 0
1 year ago
Other questions:
  • Knowledge Check 01 On March 15, Viking Office Supply agrees to accept $1,200 in cash along with a $2,800, 60-day, 15 percent not
    13·1 answer
  • When josh’s wage rises and he decides to work more hours, we know that the __________ effect has dominated the __________ effect
    8·1 answer
  • A $3,000 annual contribution to a retirement account earning 6% will be worth ____ in 20 years.
    6·2 answers
  • Latisha likes apple juice and orange juice equally well, however she normally drinks orange juice with her breakfast each day. A
    13·1 answer
  • Chief financial officer Barry submits travel and expense reports that are completely genuine and encourages employees in his div
    6·1 answer
  • All of the following are economic institutions EXCEPT
    5·1 answer
  • a newspaper reports that in urban area the average price of new homes had decreased, but the number sold had increased. The sita
    14·1 answer
  • WARM UP: If a person dies in cold weather, does that increase or decrease rigor mortis? What about Warm weather?​
    9·1 answer
  • Alguien para hablar estoy sola
    10·1 answer
  • On August 1, 2020, Jose purchased and placed in service a building that cost $1,200,000. An appraisal determined that 25% of the
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!