Answer:
- <em>The cash flow stream from investment X has higher present value than the the cash flow stream from investm Y.</em>
Explanation:
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<u>1. Present value of investment X</u>
- Annual payment: C = $4,200
- Number of years: t = 8
- Rate: r = 5%
- PV₁ = ?
Formula:
![PV=C\times [\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}]](https://tex.z-dn.net/?f=PV%3DC%5Ctimes%20%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5D)
Substitute and compute:
![PV_1=\$ 4,200\times [\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^8}]](https://tex.z-dn.net/?f=PV_1%3D%5C%24%204%2C200%5Ctimes%20%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E8%7D%5D)
<u>2. Present value of investment Y</u>
- Annual payment: C = $6,100
- Number of years: t = 5
- Rate: r = 5%
Formula:
Substitute and compute:
![PV_2=\$ 6,200\times [\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^5}]](https://tex.z-dn.net/?f=PV_2%3D%5C%24%206%2C200%5Ctimes%20%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E5%7D%5D)
Hence, the cash flow stream from investment X has higher present value than the the cash flow stream from investm Y.
Answer:
$6,500
Explanation:
For computing the estimated fixed cost, we have to determine the variable cost per hour which is shown below:
Variable cost per hour = (High power cost - low power cost) ÷ (High machine hours - low machine hours)
= ($20,000 - $11,000) ÷ (12,000 hours - 4,000 hours)
= $9,000 ÷ 8,000 hours
= $1.125
Now the fixed cost equal to
= High power cost - (High machine hours × Variable cost per hour)
= $20,000 - (12,000 hours × $1.125)
= $20,000 - $13,500
= $6,500
Answer:
Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4.5% thereafter. The maturity risk premium is estimated to be 0.0006 × (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security?
The nominal interest rate = 8.86%.
Explanation:
Average inflation premium = (4%+5%+4.5%+4.5%+4.5%+4.5%+4.5%)/7 = 31.5%/7 = 4.50%
Maturity risk premium for 7 year bond = 0.0006 * (7-1) = 0.36%
Nominal interest rate = real risk free rate + inflation premium + maturity risk premium = 4% + 4.50% + 0.36% = 8.86%.
Therefore, the nominal interest rate for the question given = 8.86%.
The South African Congress of Nonprofit Organizations (SACONO) focuses on
the anti xenophobia imbizo in Orlando, Johannesburg to evaluate modalities of
re-integrating foreigners who were recently attacked by locals for supposedly
grabbing jobs and imposing businesses targeted by the locals.
Answer:
By acting or posing as a waste management collector looking to fix the dumpster or collect the debris
Explanation:
The computer as an electronic machine has served as a tool or an object of the crime, subject of the crime and an instrument of the crime
Cyber crime
This is simply known as a criminal act. It is the process by which there is the stealing or destruction of information, resources, or funds utilizing computers, computer networks and the Internet.
Computer fraud
This is simply a type of fraud committed with the use of contemporary technology and it is regarded as a law crime. It includes theft of information and corporate espionage etc.
Most cyber crimes are usually well organized. The individual committing the crime usually puts a lot of efforts in achieving their goal. Toby could only have gained access to the company dumpster if he poses as the one or company sent to collect the trash.
