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
Reil [10]
2 years ago
12

he appropriate discount rate for the following cash flows is 8 percent compounded quarterly. Year Cash Flow 1 $700 2 700 3 0 4 1

,100 What is the present value of the cash flows
Business
1 answer:
rewona [7]2 years ago
4 0

Answer:

Thus, the present value is $2045.52.

Explanation:

Use the below formula to find the present value:

Present value = FV ÷ (1 + r/4)^(n*4)

Present value :

=\frac{700}{(1 + \frac{0.08}{4} )^{1 \times 4} } + \frac{700}{(1 + \frac{0.08}{4} )^{2 \times 4} } + \frac{0}{(1 + \frac{0.08}{4} )^{3 \times 4} } +\frac{1100}{(1 + \frac{0.08}{4} )^{4 \times 4} } \\ \\= \frac{700}{1.0824}+\frac{700}{1.1716} +0+\frac{1100}{1.3727} \\= 2045.52

Thus, the present value is $2045.52.

You might be interested in
Investment A produced annual rates of return of 4%, 8%, 14% and 6% respectively over the past four years. Investment B produced
Ghella [55]

Answer:

A

Explanation:

The investment A was more risky, but in general they were both pretty much a risk.

With both having a produced annual rates of return in under 10%

Reason for A being the riskier is that his annual rate of return in average was 8%, while B's annual rate was 9%

Difference may seem small, but for bigger investments 1% can be a deal breaker.

8 0
3 years ago
The circular flow of income model shows
zloy xaker [14]

the correct answer is letter C:)

Hope it's help!! :))

happy sunny or night

7 0
2 years ago
If the factory overhead is underapplied, then the adjusting journal entry to close the factory overhead account includes a: (Che
Ymorist [56]

Answer:

Debit to cost of goods sold and credit to factory overhead

Explanation:

Here we are interested in knowing the appropriate journal entry when the factory overhead is under applied.

What happens to the factory overhead journal in this case is that the we should have an adjusting journal entry.

The adjusting journal entry here is that we debit cost of goods sold and credit factory overhead

5 0
3 years ago
After you send in your FAFSA form, what will you receive back
goldenfox [79]
<span>After you submit the Free Application for Federal Student Aid (FAFSA), you will be sent a Student Aid Report (SAR). If they have a valid e-mail address on file for you, they will send you an e-mail, within 3 to 5 days, with instructions on how to access an online copy of your SAR.</span>
8 0
3 years ago
When Patey Pontoons issued 6% bonds on January 1, 2018, with a face amount of $600,000, the market yield for bonds of similar ri
miskamm [114]

Answer:

Follows are the solution to this question:

Explanation:

Some of the missing data is defined in the attached file, please find it.

Bond problem rates  

Diagram values are based on the following:

N = 4\times 2 \\\\

    = 8 \ Years \\

i = 10.00 \% \times  \frac{1}{2} \\\\

  = 5.00 \% \\

\left\begin{array}{ccc} Cash \ Flow&\ \ \ \ \ \ \ Table \ Value  \times  Amount& \ \ \ \ \ \ \ \ =  Present \ Value\\ Principal  &0.676839 \times  \$ 600,000&    =\$ 406,104 \\ Semi-annual \ interest& 6.463213  \times \$ 18,000 &   =\$ 116,337\end{array}\right \\

Bond issuance price                                                                    

Timetable for bond amortization:  

please find the attachment.

5 0
3 years ago
Other questions:
  • At their regular monthly meeting, a group of local brokers agrees that the introduction of "discount brokerages" in their area w
    7·1 answer
  • Smith Company reports the following information: Cost of goods manufactured $68,250 Direct materials used 27,000 Direct labor in
    12·1 answer
  • What is considered sin tax?
    15·1 answer
  • John would like to move from the suburbs into the city, but the rent in the city is very high.john has found an apartment he rea
    7·1 answer
  • Mordred had been sued by a former business partner. the partner was seeking $1,000,000 in damages. mordred felt that this claim
    11·1 answer
  • Identify and explain two dufference between the public sector and private sector
    13·1 answer
  • Which of the following statements is correct?
    13·1 answer
  • Consider the statements. Indicate whether each statement falls mainly under the field of microeconomics or macroeconomics.
    10·1 answer
  • You are headed off to college. Some close family members decide it would be a good idea to buy a house in the college town and t
    12·1 answer
  • In addition to innovation, which strength can Accenture apply to help a global telecom solve security problems?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!