Answer:
$260000
Explanation:
$280k purchase equiment >> Outflow of cash
$40,000>> Operative Cash >> Inflow Cash
$260k >> cash loan in order to achieve balance
------------------------------
$20000 >> Cash balance
Answer:The correct answer is a). $9,918.50
Explanation: In selling, the investor will use the bid price of $4.89 alongside the face value of the bill.
That is to say, the face value * (1-(bid price * no. of days)/days in a year) = 10000 * (1-(0.0489*60)/360) = $9,918.50
Answer: $80 million per year for 25 years
Explanation:
The option you should choose is one that will guarantee you the highest present value.
This means that you need to discount the annual payment of $80 million per year for 25 years to find the present value. As you did not include a rate, we shall assume a rate of 8% for reference purposes.
The annual payment is an annuity so the present value can be calculated by:
Present value of annuity = Annuity payment * Present value interest factor, rate, no. of years
= 80,000,000 * Present value interest factor, 8%, 25 years
= 80,000,000 * 10.6748
= $853,984,000
<em>The present value of the annual payment is more than the present value of the $850 million received today so the Annual payment should be taken. </em>
Answer:
one party agrees to purchase the entire production that the other party supplies.
The profit motive
Hope this helped!
STSN