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
lisov135 [29]
2 years ago
6

What is the present value of a five consecutive cash flows of $1,000 per year that start four years from today if the discount r

ate is 7%
Business
1 answer:
Georgia [21]2 years ago
5 0

The cash flow (payment or receipt) made for a given period or set of periods. The present value, PV, of a series of cash flows is the present value, at time 0, of the sum of the present values of all cash flows, CF. We start with the formula for PV of a future value ( FV) single lump sum at time n and interest rate.

Yw and pls mark me as brainiest

You might be interested in
Given the following two potential locations to construct an urgent care, use incremental B/C ratio to determine which location,
White raven [17]

Answer:

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

Explanation:

The incremental BCR can be determined using the following formula

\Delta BC_R = \frac{AW_B-AW_D-AW_M}{AW_i}

AW_C=1,000,000(A/P, 8% , 10)

⇒ AW_C= 1,000,000 \times \frac{0.08}{1-1.08^-^1^0}

⇒ AW_2=2,000,000(A/P, 8%, 20)

⇒ AW_2= 2,000,000 \times \frac{0.08}{1-1.08^-^2^0}

⇒AW_C_2 = $203,704.42

Incremental initial investment = 203,704.42 - 149,029.49

= $ 54,674.93

Incremental benefits = 580,000 - 520,000 = 60,000

Incremental O&M = 75,000 - 80,000 = - $ 5000

Incremental Disbenefits = 140,000 - 90,000 =$ 50,000

\Delta BC_R = \frac{60,000-50,000-(-5000)}{54,674.93} \\\\\Delta BC_R=0.2743

All solving using the present worth method also incremental benefit cost ratio comes out to be 0.2743.

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

3 0
2 years ago
Most consumers have only one choice in financing current purchases. (<br> a. true (<br> b. false
ryzh [129]
B. False. There are usually multiple choices depending on credit score and such.
3 0
3 years ago
Assume that investors can borrow and lend at risk-free rate of 5%. The optimal tangent portfolio on the efficient frontier has a
gizmo_the_mogwai [7]

Answer:

B. Portfolio B with E(R)=13% and STD=18%

Explanation:

The computation is shown below;

Reward to risk ratio = (15% - 5%) ÷ 20% = 0.5

The porfolio should be in line i.e.

= 0.05 + 0.5 × standard deviation

For portfolio A

= 0.05 + 0.5 × 25

= 17.5%

For portfolio C

= 0.05 + 0.5 × 1

= 5.5%

Portfolio B, the std is 18%

So,

= 0.05 + 0.5 × 18%

= 14%

5 0
2 years ago
High Country Apparel signed a $75,000, two-year, interest-bearing, 5% note on October 1, 20XX. The maturity value of the note is
Ket [755]

Based on the information given the maturity value of the note is: $82,500.

Using this formula

Maturity value of note=Principal amount+(Principal amount× Number of year× Interest rate)

Where:

Principal amount=$75,000

Number of year=2 year

Interest rate=5% or 0.05

Let plug in the formula

Maturity value of note=$75,000+($75,000×2 year×0.05)

Maturity value of note=$75,000+$7,500

Maturity value of note=$82,500

Inconclusion  the maturity value of the note is: $82,500.

Learn more about maturity value of note here:brainly.com/question/24374294

4 0
2 years ago
In May​ 2013, the value of the Consumer Price Index​ (CPI) in a certain​ country, Polonia, reached an​ all-time high of 238 inde
lina2011 [118]

Answer:

37

Explanation:

Just do the math and you'll find that is 37

4 0
3 years ago
Other questions:
  • Suppose that in the state of new hampshire at any given time, about 60,000 women are currently divorced. further suppose that in
    13·1 answer
  • Gammil companyhas beginning and ending raw materials inventories of $96000 and $120000, respectively. if direct materials used w
    9·1 answer
  • What is the stock price per share for a stock that has a required return of 12%, an expected annual dividend of $3.15 per share
    11·1 answer
  • The Average Product of Labor is __________.
    14·1 answer
  • What factors are involved when there is an interaction between a person and an experience?
    9·1 answer
  • Gienuine Products Inc. requires a new machine. Two companies have submitted bids, and you have been assigned the task of choosin
    5·1 answer
  • A major goal of integrated marketing communications is to send a consistent message to _____.
    6·1 answer
  • Monet, Inc. purchases 1,000 shares of its own previously issued $5 par common stock for $11,000. Assuming the shares are held in
    13·1 answer
  • You have decided that you would like to own some shares of GH Corp. but need an expected 12% rate of return to compensate for th
    11·1 answer
  • true or false: the beta for the portfolio after the stocks have been added is the weighted average of the beta before the stocks
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!