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3 years ago

The appropriate discount rate for the following cash flows is 8 percent compounded quarterly.

Business

1 answer:

NISA [10]3 years ago

7 0

Answer:

Total PV= $2,736.39

Explanation:

Giving the following information:

Year Cash Flow

1 $ 870

2 950

3 0

4 1,540

First, we need to calculate the real annual discount rate:

Quarterly Discount rate= 0.08/4= 0.02

Real annual interest rate= [(1+i)^n] - 1

Real annual interest rate= [(1.02^4) - 1]

Real annual interest rate= 0.08243

Now, we can calculate the present value of the cash flows:

PV= Cf/(1+i)^n

Year 1= 870/1.08243= 803.75

Year 2= 950/1.08243^2= 810.82

Year 4= 1,540/1.08243^4= 1,121.82

Total PV= $2,736.39

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Fed can purchase government bonds or it can extend discount loans to commercial banks.

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2 years ago

When calculating your return on investment you should ignore:A) paper gains.B) losses you avoided by not buying a stock that has

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Answer:

B) losses you avoided by not buying a stock that has since decreased in price

Explanation:

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4 years ago

One of the most valuable sources firms have at their disposal is a rich cache of customer information and purchase history from

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One of the most valuable sources firms have at their disposal is a rich cache of customer information and purchase history from their day-to-day operations, which is a type of Internal secondary data

Explanation:

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3 years ago

4. The structure of the Federal Reserve How does the Federal Reserve regulate the money supply? Check all that apply. By buying

gulaghasi [49]

Answer:

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Explanation:

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4 years ago

Read 2 more answers

A particular forecasting model was used to forecast a six-month period. Here are the forecasts and actual demands that resulted:

Alla [95]

Answer:

MONTH TRACKING SIGNAL

April 1

May 2

June 3

July 3

August 2

September 3

Explanation:

Given the data in the question;

A B C D E F G

Month Forecast Actual Error |Error| RSFE MAD

cumulative

C-D |C-D| of D

April 244 344 100 100 100 100.00

May 318 468 150 150 250 125.00

June 393 493 100 100 350 116.67

July 343 293 -50 50 300 100.00

August 368 268 -100 100 200 100.00

September 443 568 125 125 325 104.17

the tracking signal for each month will be;

Tracking Signal =

Running Sum of Forecast Errors (RSFE) / Mean Absolute Deviation (MAD)

so substitute

Month of APRIL;

Tracking signal = 100 / 100.00 = 1

Month of MAY;

Tracking signal = 250 / 125.00 = 2

Month of JUNE;

Tracking signal = 350 / 116.67 = 2.9999 ≈ 3

Month of JULY;

Tracking signal = 300 / 100.00 = 3

Month of AUGUST;

Tracking signal = 200 / 100 = 2

Month of SEPTEMBER;

Tracking signal = 325 / 104.17 = 3.11 ≈ 3

Therefore,

MONTH TRACKING SIGNAL

April 1

May 2

June 3

July 3

August 2

September 3

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3 years ago