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
Which of the following transactions will increase an asset and increase a​ liability? A. Purchasing office equipment for cash B.
Mariana [72]

Answer:C. Buying equipment on account.

Explanation:

4 0
3 years ago
Which principle of the American Free Enterprise System is described in the statement "Consumers have the right to buy and sell p
lilavasa [31]
C. Private Property
Make sure to follow @get.sendy on Instagram.
Tony Hawk follows :)
8 0
3 years ago
Which of the following actions can be considered good business etiquette?
Crazy boy [7]
The answer is A, switching your cell phone off before you enter a meeting.
5 0
3 years ago
The Azuza Company owns no plant assets and had the following income statement for the year:
Nutka1998 [239]

Answer:Please see answer below

Explanation:

Solving

Net income= $16,000

Change in asset and liabilities

Accounts receivable Increased $67,000- $59,000 =- -8000

Inventory Decreased 62,000- 86,000=24,000

Prepaid rent --Increased 9,000- 7,000 = -2000

Accounts payable ---decreased 22,000 -30,000 = -8000

Wages payable ----Increased 9,000- 7,000=2000

Net cash provided by operating activity.=24,000+ 2000-(8000+2000+8000)

= $24,000

Net income= $16,000

Change in asset and liabilities

Accounts receivable--Increase -$8,000

Inventory--Decreased-- $24,000

Prepaid rent --Increased -$2,000

Accounts payable ---decreased-$8,000

Wages payable ----Increased $2,000

Net cash provided by operating activities,= $24,000

6 0
3 years ago
On January 1, 2021, Nana Company paid $100,000 for 6,200 shares of Papa Company common stock. The ownership in Papa Company is 1
anygoal [31]

Answer:

$372,000

Explanation:

The computation of the amount to be reported in the balance sheet is shown below:

= Number of shares of common stock × fair value of the Papa stock on that date per share

= 6,200 shares × $60

= $372,000

Since in the question it is given that the Nana company does not have significant influence over Papa Company which means that the net income, retained earning, dividend is not be considered.

Therefore, the investment should be reported at the fair value

6 0
3 years ago
Other questions:
  • A(n)______________________ aligns strategic goals, operations effectiveness, reporting, and compliance objectives. a. operationa
    5·2 answers
  • "If $120,000 is borrowed for a home mortgage, to be repaid at 9% interest over 30 years with annual payments of $11,680.36, how
    10·2 answers
  • This is a text message that is stored on a user's computer by a Web server that helps trace the user's browsing habits.a) Script
    14·1 answer
  • Makes our arms, legs, and head move
    13·2 answers
  • if the nominal interest rate is 4.00% and the rate of inflation is 2.25%, what is the real interest rate? 1.75% 4.50% 6.25% 9.00
    12·1 answer
  • James is employed by a large corporation with 400 employees. The corporation provides its employees with a no-cost gym membershi
    9·1 answer
  • Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $370 and has a unit cont
    11·1 answer
  • Which of the following is a common risk of using credit to make purchases
    11·1 answer
  • Rick works off commission. He earns 10 percent of all manufacturing equipment he sells. If he made a sale of $9,000, how much wa
    6·1 answer
  • To qualify for a mortgage loan originator endorsement, applicants must meet education, examination, credit report, and ______ re
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!