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
Inessa05 [86]
3 years ago
9

An alumnus of West Virginia University wishes to start an endowment that will provide scholarship money of $40,000 per year begi

nning in year 5 and continuing indefinitely. The donor plans to give money now and for each of the next 2 years. If the size of each donation is exactly the same, the amount that must be donated each year at i = 8% per year is closest to:___.
a) $190.820.
b) $122.280.
c) $127.460.
d) $132.040.
Business
1 answer:
olga55 [171]3 years ago
3 0

Answer:

A

Explanation:

Present value of a  perpetuality = amount / interest rate

= $40,000 / 0.08 = $500,000

Let D denote denote denotions

D + \frac{D}{1 + 0.8}  + \frac{D}{1.08^{2} } = $500,000

D = $190.820.

You might be interested in
____ are procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to
masya89 [10]
Background checks, I would assume.
6 0
4 years ago
Flo is considering three mutually exclusive options for the additional space he plans to add to the K-State Superstore. The cost
Dima020 [189]

Answer:

B) Children’s clothing only

Explanation:

cost of the expansion $148,000

three mutually exclusive projects:

  • NPV $221,000 for children’s clothing ≥ $148,000 (initial investment)
  • NPV $178,000 for exclusive gifts ≥ $148,000 initial investment
  • NPV $145,000 for decorator items ≤ $148,000 initial investment

The projects whose NPV is positive should be considered (this eliminates decorator items)

Since the projects are mutually exclusive, only one can be chosen. So the project with the highest NPV is the best project for the store ⇒ children's clothing

3 0
3 years ago
The Retained Earnings balance was $24,100 on January 1. Net income for the year was $19,900. If Retained Earnings had a credit b
padilas [110]

Answer: $17800

Explanation:

The opening balance of Retained earnings = $24,100

Net Income for the year = $19,900

Closing balance of Retained earnings = $ 26,200

The, the amount of dividends declared during the year = (opening balance) +(Net Income) -( Closing balance)

= $ (24100+19900-26200)

= $17800

Hence, the amount of dividends declared during the year  is $17800.

4 0
3 years ago
Which of the following is a common role of government in a” market economy? a. Provide public goods b. Own the factors of produc
lozanna [386]
It is A. Provide public goods
Hope this helps!
4 0
3 years ago
What is speculative risk?
Stels [109]

Answer:

A speculative risk is uncertain degree of gain or loss.                                                            Every speculative risk are made as conscious choices and are not just a result of uncontrollable circumstances.

Explanation:

It's basically a conscious choice you made!

3 0
3 years ago
Other questions:
  • In b2c sales the salesperson does not spend a great deal of their time:
    12·1 answer
  • Besides not being required, why do you think a company would choose to report or not report a gross profit line? Why do you thin
    6·1 answer
  • In the 1980s, Japanese competitors brought better-quality chips to the market at lower cost, threatening Intel Corporation's pos
    12·1 answer
  • If the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, then
    6·2 answers
  • Vist the Web site for a different well-known company, and find the section that lists the
    9·1 answer
  • An investment project provides cash inflows of $1,225 per year for eight years. a. What is the project payback period if the ini
    9·1 answer
  • Discuss the economic conditions and economic institutions that affect personal finance.
    15·1 answer
  • How does opportunity cost affect decision making
    6·1 answer
  • John has two hours before having to go to his part-time job. He is deciding between studying for a math exam and taking a nap. I
    10·1 answer
  • When responding to a message, what should a professional always do? Choose 2 answers.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!