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serg [7]
2 years ago
12

What is the maximum amount a firm should pay for a project that will return $15,000 annually for 5 years if the opportunity cost

is 18%?
Business
1 answer:
vampirchik [111]2 years ago
8 0

Answer:

The firm should pay $46907.57 for the given project.

Explanation:

Given information:

Return = $15000 annually

Time = 5 years

Opportunity cost = 18%

The formula for payment is

PV=R(\frac{1}{OC}-\frac{1}{OC(1+OC)^t})

where, R is return, OC is opportunity cost, t is time in years.

Substitute R=15000, t=5 and OC=0.18 in the above formula.

PV=15000(\frac{1}{0.18}-\frac{1}{0.18(1+0.18)^5})

PV=46907.5653141

PV\approx 46907.57

Therefore the firm should pay $46907.57 for the given project.

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If all courses were regular (not honors or AP) 1 credit classes, calculate the student's GPA based on the following grades:
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2.56 is the calculate of the student GPA

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2 years ago
Lena invested her savings in two investment funds. The $6000 that she invested in Fund A returned a 6% profit. The amount that s
Nostrana [21]

Answer:

The amount that Lena will invest in fund B would be $4000.

Explanation:

Given information -

Amount invested in fund A - $6000

Return earned on fund A - 6%

Let us assume amount invested in fund B be x

Return earned on fund B - 1%

Return on both funds together - 4%

Let us assume the total amount of fund invested be ($6000 + x)

Now using simple equation , we will take out the value of x which is the amount invested in fund B -

$6000 X 6% + x X 1% = 4% ( $6000 + x )

= $360 + .01 x = $240 + .04 x

= $360 - $240 = .04 x - .01 x

$120 = .03 x

x = $120 / .03

= $4000.

4 0
3 years ago
If purchasing power parity​ holds, the price level in Turkey is​ 210, and the nominal exchange rate​ (E) = 0.84 Turkish lira ​=
g100num [7]

Answer:

c. 250

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7 0
2 years ago
As the owner of a party store, you have decided to lower the price for all balloons this month. What do you expect to happen?
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Answer:

Quantity demanded for balloons will increase.

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6 0
3 years ago
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