The correct answer is: [C]: "coinsurance" .
___________________________________________________
Answer:
The amount of investment should be $1926.891 approximately
<u>Explanation:</u>
The following formula has been used to calculate the amount of investment
A = P(1+r/100) ^n
where: A = future value
, P = present value
, R = rate of interest
, N = time period
Hence
, applying the formula, we get,
$5500 = P (1+6/100) ^18
Hence P=$5500/ (1.06) ^18
=$1926.891(approx)
Answer:
Present value of investment X = $41,225.37
Present value of investment Y = $37,233.50
Explanation:
The present value of the cash flows can be found by discounting the cash flows at the discount rate.
This can be found using a financial calculator
Cash flow each year from year 1 to 9 for investment X = $5,800
Discount rate = 5%
Present value = $41,225.37
Cash flow each year from year one to year 5 for investment Y = $8,600
Discount rate = 5%
Present value = $37,233.50
I hope my answer helps you
Answer:
$15,708
Explanation:
Calculation to determine What is the amount of the aftertax lease payment
Using this formula
Aftertax lease payment=Leased equipment(1-Tax rate)
Let plug in the formula
Aftertax lease payment = $23,800 (1 - 0.34)
Aftertax lease payment=$23,800(.66)
Aftertax lease payment = $15,708
Therefore the amount of the aftertax lease payment is $15,708
Answer:
Net Cash flow in year 4 $46,140<u>
</u>
Explanation:
Cash flow represent the amount of cash revenue less out of pocket cash expenditures. Non-cash related items are not included.
Year 4 cash flow ;
$
Operating cash flow $58,500
Working capital recouped 4,950
Scrap value 6,090
Tax payable (40%*58500) <u>(23400
)</u>
Net Cash flow <u> 46,140
</u>