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
Blizzard [7]
3 years ago
14

What is the value of a loom that is expected to generate fixed annual cash flows of $3,640 every year for a certain amount of ti

me if the first annual cash flow is expected in 5 years, the last annual cash flow is expected in 10 years, and the appropriate discount rate is 3.7 percent
Business
1 answer:
Ivan3 years ago
6 0

Answer:

PV= $13,627.44

Explanation:

Giving the following information:

Cash flow= $3,640

Interest rate= 3.7%

<u>First, we need to calculate the value of the investment five years from now:</u>

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

PV= 3,640*{(1/0.037) - 1 / [0.037*(1.037^5)]}

PV= $16,342.11

<u>Now, the present value:</u>

PV= FV / (1 + i)^n

PV= 16,342.11 / (1.037^5)

PV= $13,627.44

You might be interested in
Roget Factory has budgeted factory overhead for the year at $15,500,000. It plans to produce 2,000,000 units of product. Budgete
yawa3891 [41]

Answer:

$14,76

Explanation:

Using a single plantwide factory overhead rate based on direct labor hours, the factory overhead rate for the year is $14,76.

6 0
3 years ago
Which term is defined as the lack of satisfaction a person receives from using a product repeatedly
Studentka2010 [4]
Income effect - This is the increase or decrease in purchasing power brought on by changes in prices.

substitution effect-This refers to how people may buy a lower-priced product rather than a more expensiv product. This effect may change the demand for a good or service.

5 0
3 years ago
The production possibilities model shows an inverse relationship between the amount of one thing that can be produced and the am
Ivahew [28]

Answer:

Explanation:

The production possibility curve is a graphical illustration and tool used for economic analysis. It shows the various combination of goods that can be produced given available resources.

The PPC looks like a bow shape and has an inverse relationship, this is because this is because to produce 1 more of product A you need tp be willing to let go of 1 unit of product B(assuming we can only manufacture 2 products) this concept is known aa Marginal Rate of Transformation.

8 0
3 years ago
Read 2 more answers
After a large hotel chain discovered that their computer systems had been hacked and customer credit card information had been a
Gnesinka [82]
The hotel's quick action in response to a serious situation was likely due to CYBER SECURITY BREACH. It is a threat not only to the customers but to the hotel business as well because with this breach, customers will find it hard to trust said hotel again. 

Because confidential data like credit card information were stolen, they need to immediately inform their customers to ensure that the customers will take the necessary steps in protecting themselves from having their identity stolen and from having their credit cards used in purchasing items they are not aware off. 
4 0
3 years ago
The following information is taken from the operating section of the statement of cash flows (direct method) of Battery Builders
ollegr [7]

Answer:

See below

Explanation:

1. Complete accrual basis income statement

Sales

($28,000 + $3,000)

$31,000

Less cost of goods sold

($13,000 + $2,000 - $3,000)

-$12,000

Operating expenses

($9,000 - $2,000)

-$7,000

Depreciation expenses

-$4,000

Income tax

($4,000 + $1,000)

-$5,000

Amortization expense

-$1,000

Gain on sale of equipment

$2,000

Net income

$4,000

2. Cash flow statement (Indirect)

Net income

$4,000

Adjustments;

Add depreciation

$4,000

Add write off intangibles

$1,000

Less gain on sale of equipment

-$2,000

Less increase in accounts receivables

-$3,000

Less increase in inventory

-$3,000

Add increase in accounts payable

$2,000

Less decrease in accrued payable

-$2,000

Add increase in deferred income tax payable

$1,000

Net cash from operations $2,000

7 0
3 years ago
Other questions:
  • Madrid Company plans to issue 8% bonds with a par value of $4,000,000. The company sells $3,600,000 of the bonds at par on Janua
    9·1 answer
  • Vacation Pay and Pension Benefits Regling Company provides its employees vacation benefits and a defined benefit pension plan. E
    11·1 answer
  • Choose the correct price-elasticity label for each pair of goods. Assume this involves demand for the total of all people curren
    8·1 answer
  • What are the objectives of business​
    8·1 answer
  • The activity that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes
    9·2 answers
  • Company X has 2 million shares of common stock outstanding with a book value of $2 per share. The stock trades for $3 per share.
    7·1 answer
  • Arrow Printers paid $2,000 interest on short-term notes payable, $10,000 interest on long-term bonds, and $6,000 in dividends on
    13·1 answer
  • Barry’s expectation that employees will complete his requests immediately is typical of —— leaders.
    10·1 answer
  • What does repurchase mean on shein.
    13·1 answer
  • __________ is company growth by identifying and developing new market segments for current company products.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!