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
Anna007 [38]
2 years ago
6

A 1987 advertisement in the New Yorker solicited offers on a 1967 Mercury Cougar XR7 (Motor Trend's 1967 car of the year) that h

ad been stored undriven in a climate controlled environment for 20 years. If the original owner paid $4000 for this car in 1967, what price would he have to receive in 1987 to obtain a 10 percent annual return on his investment?
Business
1 answer:
Nadusha1986 [10]2 years ago
4 0

Answer:

You can put this solution on YOUR website!

A 1987 advertisement in the New Yorker solicited offers on a 1967 Mercury Cougar XR7 (Motor Trend's 1967 car of the year) that had been stored undriven in a climate controlled environment for 20 years.

If the original owner paid $4000 for this car in 1967, what price would he have to receive in 1987 to obtain a 10 percent annual return on his investment?

---------

If the 10% is compounded yearly the price is as followed.

A(10) = 4000(1+(0.10/1))^(10*1)

---

A(10) = 4000(1.1)^10

---

A(10) = $10,374.97

======================

Cheers,

Stan H.

You might be interested in
Which of the factors listed below contribute to the market value of a going concern? intangible assets market value of assets va
trasher [3.6K]

Answer:

intangible assets

market value of assets

extra earning power

Explanation:

As an accounting principle, going concern value means the value of a business or its assets considering that the business will continue to operate in the reasonable future. This is the opposite to the value assigned to assets or businesses that are being discarded or liquidated.

When you are trying to valuate a company, you have to consider the fair market value of its assets, its intangible assets, and its earning power (its ability to make higher than average profits).

The past share price is not useful in determining the present of the company and the value of future investments cannot be included until the investments are carried out.

7 0
3 years ago
UPS, a delivery services company, has a beta of 1.4, and Wal-Mart has a beta of 0.9. The risk-free rate of interest is 4% and th
Elena-2011 [213]

Answer:

10.9%

Explanation:

to calculate the expected return of the portfolio, we first need to calculate the portfolio's beta:

the portfolio beta = (beta UPS stock x weight UPS stock) + (beta Walmart stock x weight Walmart) = (1.4 x 50%) + (0.9 x 50%) = 0.7 + 0.45 = 1.15

portfolio's expected return = risk free rate + (portfolio beta x market risk premium) = 4% + (1.15 x 6%) = 4% + 6.9% = 10.9%

7 0
3 years ago
Sheena, marketing manager for Yaard-Vark Lawn Tractors, is interested in the relationship between the prices of lawn tractors an
AlekseyPX

Answer:

Exploratory

Explanation:

Sheena, marketing manager for Yaard-Vark Lawn Tractors, is interested in the relationship between the prices of lawn tractors and the level of sales. To test whether increasing prices will lead to a change in sales and, if so, how much of a change, she should use exploratory research.

Exploratory research is the kind of research where an unknown phenomenon is worked upon. In this case, Sheena does not know the effects of prices on sales. Therefore she carries out exploratory research to fill in the blanks.

4 0
3 years ago
John is auditing MegaCorp. He finds an accounts payable for 10,000 cases of ball bearings. He checks to make sure the paper actu
zzz [600]
Your answer is.........B. Vouching.
4 0
3 years ago
Even with international​ trade, countries rarely specialize because A. Some countries do not have a comparative advantage in any
Rina8888 [55]
Letter A marks the spot
8 0
3 years ago
Other questions:
  • Libby bought 250 stocks of a company named Xylet last year. Xylet’s total earning for the year is $ 4million and it has 1,000,00
    13·1 answer
  • How did lax security impact target's sales revenue and profit performance?
    15·1 answer
  • True or false
    11·1 answer
  • When a bond issued at face value is retired what is the journal entry
    13·1 answer
  • Woolford Inc. declared a cash dividend of $1.00 per share on its 2 million outstanding shares. The dividend was declared on Augu
    9·1 answer
  • Senff Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activi
    6·1 answer
  • Suppose the U.S. foreign assets are 67 percent of the U.S.​ GDP, and the U.S. foreign liabilities are 95 percent of the U.S. GDP
    10·1 answer
  • Alan, an accountant in a law firm, is summarizing his company’s expenses and revenue in the form of an income statement. However
    14·2 answers
  • Which punctuation mark best matches the image?
    7·1 answer
  • the stock price jumps twice in a given year. if it jump up, it goes up by 10%, if it goes down, it goes down by 20%. the stock i
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!