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Oduvanchick [21]
3 years ago
8

An investment opportunity requires a payment of $910 for 12 years, starting a year from today. If your required rate of return i

s 6.5 percent, what is the value of the investment to you today
Business
1 answer:
denis23 [38]3 years ago
5 0

Answer:

PV= $7,424.44

Explanation:

Giving the following information:

Annual payment (A)= $910

Number of periods (n)= 12 years

Rate of return (i)= 6.5%

<u>To calculate the value of the investment today (PV), we need to use the following formula:</u>

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

PV= 910*{(1/0.065) - 1/ [0.065*(1.065^12)]}

PV= $7,424.44

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marysya [2.9K]

Answer:

$20,226

Explanation:

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expected variable cost = $3.072 - $3.20 - $3.328

total fixed costs = $31,000

if you use an excel spreadsheet you can calculate all the different possible simulations and combine all the expected sales x 3 different price levels x 3 different variable costs and 1 fixed cost. Once you get all the 27 possible solutions, you just get the average.

I attached it because there is no room here.

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3 years ago
Which of the following statements is true of a corporation?
Vladimir [108]

Answer:

d. Corporations pay income tax on corporate earnings, and shareholders pay personal income tax on corporate dividends and gains from the sale of stock.

Explanation:

At the end of each accounting period, the corporation is expected to pay a tax known as income tax from the taxable income earned by the corporation. This tax is paid by the corporation before the amount to be paid to the shareholders of the company in form of dividends.

The shareholders of the company are further subjected as individuals to personal income tax.

This is known as double taxation of dividend. Gains from sale of stock are also taxed under personal income tax.

3 0
3 years ago
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Which of the following is not an example of<br> institutional consumers?
Murljashka [212]

Answer:

which of the following but where are the following broo

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You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use
Jobisdone [24]

Answer:

$17,167

Explanation:

<em>The first step is to calculate amount of cash that would be charged</em>

<em>For 30 months, pay $520 per month for 30 months and an additional $10,000 at the end of 30 months.</em>

Present value is = 2,221

<em>Then</em>

<em>The present value of the payment options is =</em>

<em>($520 * PVA (24% 12,30) + $10,000 PV ( 24% 12,30))</em>

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<em>$11646 + $ 5521</em>

<em>$17,167</em>

<em>Therefore the amount of cash the car dealer would charge is $17,167</em>

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3 years ago
Points out of 1.00 Not flaggedFlag question Question text From the lessee's perspective, in the first year of a lease,
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Answer:

A) a finance lease will cause debt to increase, compared to an operating lease

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