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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

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Faith went to the grocery store to buy apples. if each apple cost $0.78, and she spent a total of $4.68, how many apples did fai
nirvana33 [79]

Faith bought 6 apples at $.78 each. She paid $4.68 for the apples.


Given : $.78 price for each apple

$4.68 the amount Faith spent for the apples.


$4.68 / $.78 = 6

4 0
3 years ago
A company sells 800 units at $16 each, has variable costs of $12 per unit, and fixed costs of $1,200. Income is $
Inessa05 [86]

Assuming a company sells 800 units at $16 each, has variable costs of $12 per unit. The after-tax income is $1,200.

<h3>After-tax income</h3>

Using this formula

After-tax income=(Selling units×Selling price)-[(Variable costs×Selling price)+Fixed costs]×(1- tax rate)

Let plug in the formula

After-tax income=(800 units× $16 each)-[(800 units × $12 each)+$1200]×(1-.40)

After-tax income=$12,800-($9,600+$1,200)×0.60

After-tax income=$12,800-$10,800×0.60

After-tax income=$2,000×0.60

After-tax income=$1,200

Inconclusion the after-tax income is $1,200.

Learn more about after-tax income here:brainly.com/question/1775528

5 0
2 years ago
Qualified Retirement plans must provide a written Investment Policy Statement. Under ERISA interpretations, all of the following
mariarad [96]

Answer:

D: a list of the actual securities in the portfolio

Explanation:

Under Employee Retirement Income Security Act of 1974 (ERISA) interpretations, the details of risk, time horizon, target asset mix, investment goals and objectives, and guidelines for review are among the items which must be disclosed in the statement. A list of the specific investments in the plan is not a required disclosure.

7 0
3 years ago
When was touching spirit bear first copyrighted?
marin [14]
He book was first copyrighted<span> in 1662 under the licensing act 

</span>
6 0
2 years ago
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this​ par
s344n2d4d5 [400]

Answer:

Maximum price= $11.9

Explanation:

Giving the following information:

Assuming a production level of 6,300 ​units:

Direct materials $ 4.20

Direct labor $ 4.30

Variable manufacturing overhead $ 3.40

The fixed overhead costs are unavoidable

Because the fixed overhead costs are unavoidable, we will concentrate on the variable costs.

The maximum price would be the total variable cost:

Total variable cost= 4.2 + 4.3 + 3.4= $11.9

Maximum price= $11.9

4 0
3 years ago
Read 2 more answers
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