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ryzh [129]
3 years ago
10

Huggins Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 830 2 1,150 3 1,410 4 1,550 I

f the discount rate is 8 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ What is the present value at 16 percent?
Business
1 answer:
Rasek [7]3 years ago
7 0

Answer:

$4,013.10.

$3,329.54.

Explanation:

If discount rate is 8%

PV of Cash Flows :

($830 / 1.08^1) + ($1,150 / 1.08^2) + ($1,410 / 1.08^3) + ($1,550 / 1.08^4)

$768.52 + $985.94 + $1,119.30 + $1,139.30

$4,013.10

If discount rate is 16%

PV of Cash Flows :

($830 / 1.16^1) + ($1,150 / 1.16^2) + ($1,410 / 1.16^3) + ($1,550 / 1.16^4)

$715.52 + $854.64 + $903.33 + $856.05

$3,329.54.

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Firms can take out term life-insurance policies on their top executives. <br> a. True <br> b. False
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I believe the answer is A true
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In the post World War II period, considerable growth in total production took place in the United States. But at the same time,
Maurinko [17]

Answer:

The answer is A) real GDP gives an overly positive view of economic welfare.

Explanation:

Real GDP measures the economic value of total produced goods of an economy adjusted by price levels. It takes in account consumption, investment government purchases and net exports.

However, they do not take into account externalities or negative consequences of the production of an economy. If US produced in factories that produce a lot of pollution, the GDP would capture the value of the produced goods from the factory. However it will not measure the economic consequences of pollution, damage to environment and the industries that depend in these resources. In the long run GDP could be lower if that pollution decreased the possibilities or inputs used to produce goods but in the short run GDP will give a positive view as if nothing bad was happening.

7 0
3 years ago
Lena works as an order-taker at fast burger, a fast-food restaurant. she does not cook food, or even package the final order, bu
gregori [183]

The fast burger is not an example of mechanistic organization, therefore, it is false. It is because a mechanistic organization should provide rules and tasks that are provided to each employee and the authority should be centralized—in the given scenario, the mechanistic organization is not seen above.

7 0
3 years ago
Read 2 more answers
According to the CME Group, the market price of the E-mini futures is $2,939.25. Each futures contract delivers 50 times the ind
KatRina [158]

Answer:

E-Mini futures = $2,939.25

Contract Size = 50

Portfolio Value = $10,000,000, Beta 1.5

Target Beta 2, Planning to increase the exposure

Calculation of Number of contracts needed = [Portfolio Size x (Target Beta - Actual beta)] / Contracts Size x Future Price

= (10,000,000 x (2 - 1.5) ] / 50 x 2939.25

= (10,000,000 x 0.5) / 146962.5

= 5,000,000 / 146962.5

= 34.02228459641065

= 34

So, you need to go Long 34 contracts to Increase the exposure.

3 0
3 years ago
On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value o
Vilka [71]

Answer:First Year  Depreciation= $84,000

Second Year  Deprecation= $78,400

Explanation:

Using Double declining

We have that :

Depreciation value  = Cost - Salvage value

$280,000 - $40,000 =$240,000

Since machine is expected to depreciate for 5 years, Annual depreciation  = 240,000 / 5 years

= $48,000

Annual Depreciation Rate = 48,000 / 240,000 = 20%

Therefore, Double declining  = 20 x 2 = 40%

First Year  Depreciation: from April to December

= 40% x  280,000 x 9/12 months

= $84,000

Second Year  Deprecation:

= 40% x (280,000 - 84,000)

= $78,400

4 0
3 years ago
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