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
Olegator [25]
3 years ago
11

Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 865 2 1,040 3 1,290 4 1,385

a. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4
Business
1 answer:
andrezito [222]3 years ago
5 0

Answer:

Total FV= $5,080.86

Explanation:

Giving the following information:

Cash Flow:

Cf1= $865

Cf2= $1,040

Cf3= $1,290

Cf4= $1,385

Discount rate (i)= 8%

<u>To calculate the total future value, we need to apply the following formula to each cash flow:</u>

FV= Cf*(1+i)^n

Cf1= 865*1.08^3= 1,089.65

Cf2= 1,040*1.08^2= 1,213.01

Cf3= 1,290*1.08= 1,393.2

Cf4= 1,385

Total FV= $5,080.86

You might be interested in
In the context of Web marketing, the _____ is computed by dividing the number of clicks an ad gets by the total impressions boug
s2008m [1.1K]

Answer:

Click-through rate

Explanation:

In the context of Web marketing, the click-through rate is computed by dividing the number of clicks an ad gets by the total impressions bought.

5 0
2 years ago
Marketing information has no value until it is used to ________.
CaHeK987 [17]
Marketing information has no value until it is used to make better marketing decision.


Hope this helps 
8 0
3 years ago
You are planning your retirement in 10 years. You currently have $162,000 in a bond account and $602,000 in a stock account. You
UNO [17]

Answer:

Amount withdraw each year = $ 186,991.24

Explanation:

Amount accumulate at the time of retirement = FV of Current Investment in Bond + FV of Current Investment in Stock + FV of annuity deposited in bond

Amount accumulate at the time of retirement = 162000 x (1+7.5%)^10 + 602000 x (1+11%)^10 + 7800 x ((1+7.5%)^10 -1) / 7.5%

Amount accumulate at the time of retirement = $ 2,153,565.83

Amount withdraw each year = Amount accumulate at the time of retirement/Annuity factor

Amount withdraw each year = 2153565.83 / ((1-(1+6.75%)^-23) / 6.75%)

Amount withdraw each year = $ 186,991.24

7 0
3 years ago
The Salt and Pepper Partnership was formed in January of the current year when Salt and Pepper each contributed $10,000 cash and
Novay_Z [31]

Answer:

Salt's basis = -$3900 from a 50% sharing basis

Explanation:

profit sharing ratio as per contributions is 50%:50%

ordinary loss                  - $5000

tax exempt income       -$2000                  

Charitable contribution -$800

Taxable loss                 =$7800

profit(loss) share

Salt                         = -3900

Pepper                   =-3900

3 0
3 years ago
This graph shows the marginal costs of each pair of
lorasvet [3.4K]

Answer:

Pair 4

Explanation:

Has the lowest marginal cost

7 0
3 years ago
Other questions:
  • During the 1920s, the Federal Reserve increased the money supply and kept interest rates very low, encouraging consumer spending
    14·1 answer
  • Cala manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. the nego
    10·1 answer
  • Explain how a Target price for farm crops is an example of a price floor.​
    8·1 answer
  • Which of the following assessments of electronic retailing is most accurate? a. The line between electronic retailing and tradit
    14·1 answer
  • Which of the following will be affected if consumers take money out of checking accounts to pay their credit cards?A. M1B. M2C.
    7·1 answer
  • Harley-Davidson employs a method of inventory control demanding that suppliers deliver parts and raw materials to Harley's produ
    10·1 answer
  • Energy Drink, Inc. has decided to launch a new energy drink that will have the fewest calories among its competitors. To underst
    8·1 answer
  • Jackson Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2021, with payment of 20 million Korean won
    12·1 answer
  • If someone is discriminated by a law based on gender, the burden is on the state to show that the law is substantially related t
    14·2 answers
  • What is a LinkedIn InMail?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!