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
posledela
2 years ago
6

ST Trucking just signed a $3.8 million contract. The contract calls for a payment of $1.1 million today, $1.3 million one year f

rom today, and $1.4 million two years from today. What is this contract worth today at a discount rate of 8.7 percent?
Business
1 answer:
Doss [256]2 years ago
7 0

Answer:

The worth of the contract today = $3,480,817.37

Explanation:

To determine the worth of the contract today,

We will work out the present value of each of the expected future cash cash payment at a discount rate rate of 8.7% and sum them.

The present valus of the payments indicate how much they worth today if the ST Trucking can invest at a rate of 8.7% per annum

This is done as follows:

PV = 1,100,00× (1.087)^(-0)  + (1,300,000 × (1.087)^(-1) + (1400000 ×(1.087)^(-2)

PV = 1,100,000 +  1,195,952.2 +  1,184,865.2

    =  $3,480,817.37

The worth of the contract today = $3,480,817.37

You might be interested in
Emily wants to search online for entrepreneurship opportunities in the field of business development. However, she wants to skip
jeka94

Answer:

C.

“entrepreneurship + business + development - branding”

Explanation:

Researchers usually put a hyphen before a word as a technique to exclude it from online search results. This method allows for narrowing down results to the desired pages only.  When searching for keywords that are frequently used together,  putting a hyphen helps exclude unwanted results.

4 0
3 years ago
Robin has moved to a new town during her sophomore year in high school. In order to find a new group of friends, she joins the s
ira [324]

Answer:

Letter d is correct. <u>Coping behavior.</u>

Explanation:

The most suitable alternative to the question is the letter d.

Coping behavior can be defined as behavioral and cognitive efforts that an individual exerts to manage some issues that can be internal or external. This type of behavior is used when it is necessary to deal with great changes.

Therefore coping behavior is a process that an individual finds to manage stressful situations that can cause some type of anxiety.

6 0
3 years ago
Read 2 more answers
How can you take advantage of the information on social media sites related to careers you are interested in?
elena-s [515]

It can easily show a lot of the ups and downs to careers that one may be interested. You can see people's personal experiences and how people view the job compared to what it is. You can get a lot of insight which could sway your choice.

3 0
2 years ago
Suppose yasmine and mercedes are the only two consumers in the market. when the market price falls from $12 to $6, the quantity
mrs_skeptik [129]
I suppose it's 15 units.
6 0
3 years ago
Sheria has to evaluate whether she has enough in-house staff working on her project. What steps should she go through to compute
Sergio039 [100]
The answer is going to be A
6 0
3 years ago
Read 2 more answers
Other questions:
  • Demand for individual products can be driven by product life cycles. <br> a. True <br> b. False
    13·1 answer
  • Adamis the owner/operator of a flower shop. Last year he earned $250,000 in total revenue. His explicit costs were $175,000 paid
    6·1 answer
  • Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance
    7·1 answer
  • The company president does not believe that the formula should be altered for fear it will tarnish the company's brand
    12·1 answer
  • In economics what does the term market referred to
    14·2 answers
  • Consumers use and process different aspects of advertising or messages. __________ yields greater attention and deeper processin
    14·1 answer
  • Problem 4-6 (Algo) Income statement presentation; Discontinued operations; EPS [LO4-1, 4-3, 4-4, 4-5] Rembrandt Paint Company ha
    5·1 answer
  • Share an example from your life where you had to make a choice knowing that you are giving up opportunities for doing or gaining
    14·1 answer
  • Production equipment costing $500,000 has been purchased by a contract manufacturing company to meet the specific needs of a cus
    7·1 answer
  • a municipal finance professional wants to make a political contribution to a candidate for mayor in the town that she resides in
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!