An investment is expected to yield $300 in three years, $500 in five years, and $300 in seven years. What is the present value of this investment if our opportunity rate is 5%

Answers

Answer 1

Answer:

Total PV= $864.11

Explanation:

Giving the following information:

Cash flows:

Cf3= $300

Cf5= $500

Cf7= $300

Opportunity rate= 5%

To calculate the total present value, we need to use the following formula on each cash flow:

PV= FV/(1+i)^n

PV1= 300/(1.05^3)= 259.15

PV2= 500/(1.05^5)= 391.76

PV3= 300/(1.05^7)= 213.20

Total PV= $864.11


Related Questions

doo u see abs?????????????????????????????

Answers

Answer:

nah and yah

Explanation:

Answer:

. . . im scared. . .

Explanation:

Zwick Company bought 21,500 shares of the voting common stock of Handy Corporation in January 2018. In December, Handy announced $201,500 net income for 2018 and declared and paid a cash dividend of $3 per share on all 203,500 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2018 would be:

Answers

Answer:

$64,500

Explanation:

Shareholders are entitled to returns they have made in companies  through dividends

Zwick Company is a shareholder in Handy Corporation and hence also received its dividends returns amongst other Zwick Company investors.

Zwick Company's dividend revenue will be calculated as :

Dividend Revenue = Dividend Payout Ratio × Number of Share held on date of announcement

                               = $3 × 21,500 shares

                               = $64,500

Therefore, Zwick Company's dividend revenue from Handy Corporation in December 2018 would be $64,500

The _____ records a company’s gross receipts (cash in) and gross payments (cash out) for a specific period of time.


A.
statement of cash flows

B.
profit statement

C.
customer ledger file

D.
balance sheet

Answers

I think the answer is d because it the only one that makes sense.

Please click on the ❤️. Thanks!

The statement of cash flows records the cash receipts and the cash payment for the specific period of time. hence. option A is correct.

What is a cash flow statement?

It is the statement that shows the cash position of an organization.

When the cash is received so it should be added and when the cash is paid it should be deducted.

Therefore, we can say that the option A is correct.

And, the rest of the options are wrong.

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Gi Gi's Bakery has total assets of $451 million. Its total liabilities are $123 million. Its equity is $328 million. Calculate the debt ratio.

Answers

Answer:

27.27%

Explanation:

With regards to the above, the formula for debt ratio is

= Total liabilities ÷ Total assets

Given that;

Total liabilities = $123 million

Total assets = $451 million

Debt ratio = $123 million ÷ $451 million

Debt ratio = 0.27272727

Debt ratio is 27.27%

Therefore, the debt ratio is 27.27%

What was the major financial difference between post-World War II borrowers and borrowers after 1970

Answers

Answer: Borrowers after 1970 had more debt due to lower paying jobs

Explanation:

After the second world war, the world underwent a period of economic growth especially in the United States. The government was spending massive amounts on the economy and companies were investing to take advantage of an economy with very high consumption.

This led to higher paying jobs for citizens who were able to borrow money knowing that they had the capacity to pay back.

This changed after 1970 because the jobs became less lucrative than before. People however kept borrowing even though they could not afford it as much leading to a general rise in consumer debt.

The Great Depression have an effect on the credit industry. The major financial difference between post-World War II borrowers and borrowers after 1970 is that;

Borrowers post WWII were known to have borrowed in the midst of prosperity. Financial institutions were known to also lent more money and borrowers paid it back.

Borrowers after 1970 still borrow as their parents had done, but they did not have to postwar period's well paying jobs and as such did not all pay back.

During the Great Depression of the 1930s, a lot of banks did folded up and there was a lot of robbing of millions of Americans people of their savings.

Savings in banks then were said to be never insured, and as a result of this,  more people and businesses tried to withdraw their funds fast as banking crisis grew up.

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In May of 2018, Raymond Financial Services became involved in a penalty dispute with the EPA. At December 31, 2018, the environmental attorney for Raymond indicated that an unfavorable outcome to the dispute was probable. The additional penalties were estimated to be $764,000 but could be as high as $1,158,000. After the year-end, but before the 2018 financial statements were issued, Raymond accepted an EPA settlement offer of $888,000. Raymond should have reported an accrued liability on its December 31, 2018, balance sheet of:

Answers

Answer:

$888,000

Explanation:

Contingent liabilities must only be recorded in the financial statements if they are likely probable and they can be quantified. If they are only possible, or they cannot be quantified, then they must be disclosed but not recorded. If they are not possible to happen, then nothing should be done.

In this case, the agreement was reached before the financial statements were finished, adjustments are always made after December 31. So, the balance should include this agreement since it is both probable and it includes a definite quantity.

One component of learning about another country or region is to understand the relationship of its currency with others on the world currency market. As such, you are assigned the duty of ensuring the availability of 100,000 yen for a payment scheduled next month. Considering that your company possesses only U.S. dollars, identify the spot and forward exchange rates. What are the factors that influence your decision to use each

Answers

Answer and Explanation:

Since in the question it is mentioned that there is an availability of 100,000 yen for the payment that scheduled next month now the factors that impact the decision for using the each i.e. spot or thw forward one and the same would overall based on how the US dollar strength opposite to other currencies specifically in the YEn

the same is to be relevant

A company decides to close down its plastics division. It has on hand 20 tons of styrene monomer, a raw material that has a market price of $800 per ton, which had been originally purchased at $750 per ton. Given that the company has no use for the styrene monomer, and that it would cost the company $5200 to store it, what is the total value of the 20 tons of styrene monomer to the company

Answers

Answer:

$16,000

Explanation:

With regards to the above information, we are only concerned with calculating the value of 20 tons of styrene to the company, hence other information are not relevant.

The total value of the 20 tons of styrene monomer to the company would be ;

= 20 tons of styrene monomer × Market price of styrene monomer per ton

= 20 × $800

= $16,000

Materials were requisitioned for use, $28,200, of which $25,000 were direct materials. The entry is:

Answers

Answer:

Debit : Work In Process $28,200

Credit : Direct Materials $25,000

Credit : Indirect Materials $3,200

Explanation:

Materials requisitioned for use are include in Product Cost calculation. The Work In Process Account is the major account used to calculate the Product Cost during the Manufacturing Process.

Thus, Debit the full amount of materials requisitioned for use to the Work In Process Account and Credit the respective categories of Accounts supplying the Work In Process to show their decrease. Note that Indirect Materials take the $3,200 remaining after $25,000 have been used by direct materials against the total of $28,200 requisitioned.

On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $59,600, and the fair value was $61,600. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.

Answers

Answer:

Dr Valuation Allowance for Trading Investments $2,000

Cr Unrealized Gain on Trading Investments $2,000

Explanation:

Preparation for the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments

Based on the information given if on December 31, the cost of the trading securities portfolio was the amount of $59,600 while the fair value was the amount of $61,600 which means that the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments will be :

Dr Valuation Allowance for Trading Investments $2,000

Cr Unrealized Gain on Trading Investments $2,000

($61,600-$59,600)

Choose a real or made up company abd desvribe at least 3 variable costs the company has.

Answers

Answer:

The three main variable costs of any company are:

Raw materials or components that are proportional to the number of units produced. For example, if you need 2 pounds of materials to produce 1 unit of good X and you produce 100 units, your total materials will be 200 pounds.

Direct labor which is proportional to the number of hours worked. For example, if you need 0.5 hours of labor to produce 1 unit of good X and you produce 100 units, your total direct labor will be 50 hours.

Sales commissions which are paid as a percentage of total sales closed by your salesforce. For example, each salesperson earns $10 per unit of good X sold, and 100 units are sold, the salesperson will earn $1,000.

Answer:

Dominos is a company that has many variable costs. Some examples include flour, cheese, and tomatoes.

Explanation:

A Company issued a one-year, 9%, $200,000 note on June 1, 2019. Interest
expense for the year ended December 31, 2019 was:
O $18,000
O $13,500
O $12,000
O $10,500
O None of the above​

Answers

Answer:

O None of the above​

Explanation:

The expenses at the end of December 31, 2019, will be 6 months interest.

Interest = p x r x t

in this case

p= $200,000

r=9% or 0.09

t= 6 months or 0.5 years

Interest = $200,000 x 0.09 x 0.5

Interest = $ 18,000 x 0.5

Interest = $9,000

Stock Z has an expected return of 12% with a standard deviation of 8%. If returns are normally distributed, then approximately two-thirds of the time the return on stock Z will be Group of answer choices between 12% and 20%. between 4% and 20%. between 8% and 12%. between -4% and 28%.

Answers

Answer:

between 4% and 20%

Explanation:

Given that :

Expected return = 12%

Standard deviation = 8%

The return on stock Z can be calculated thus

Interval = expected return ± standard deviation

Lower boundary = 12% - 8% = 4%

Upper boundary = 12% + 8% = 20%

Hence, return on stock Z will be between 4% and 20%

A person working under the direct supervision of a licensed broker specializing in property management:

Answers

Answer: Must be a liscened real estate sales person

Explanation:

A liscened real estate sales person acts on behalf of a broker, where they

help clients in buying, selling or renting properties. They help guide them through the process of finalizing purchases or sales.

A price change would have the largest income effect on a A) magazine. B) tablet computer. C) piece of clothing.

Answers

Answer: D. Car

Explanation:

The full options for this question includes a fourth option which is option D for Car.

Should this be the case then a car would present the largest income effect if there was a price change.

Goods that are more expensive will present larger income effects because a price change would affect their prices more and make them even more expensive which means that they would be taking more from income and in so doing causing a larger income effect.

(if there is no fourth option for car, use tablet computer instead).

You are thinking about investing in a mine that will produce $10,000 worth of ore in the first year. As the ore closest to the surface is removed it will become more difficult to extract the ore. Therefore, the value of the ore that you mine will decline at a rate of 8% per year forever. If the appropriate interest rate is 6%, then the value of this mining operation is closest to:

Answers

Answer:

$71,428.57

Explanation:

we can use the perpetuity formula to solve this question:

present value = future cash flow / (discount rate - g)

future cash flow = $10,000discount rate = 6%g = growth rate = -8%

present value = $10,000 / (6% - - 8%) = $10,000 / 14% = $71,428.57

The value of the mining operation is closest to $71.429

The cash flow here = $10000

The decline rate of growth =  -8% per year

The interest rate = 6%

The formula that is used to get the value of mining operation is given as:

[tex]Value of MiningOperation=\frac{CashFlow}{Rate-Growth}[/tex]

[tex]Value of mining = \frac{10000}{0.06-(-0.08)} \\\\= \frac{10000}{0.06+0.08} \\\\=\frac{10000}{0.14} \\\\= $71.428.6[/tex]

Therefore The value of the mining operation is closest to $71.429

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You have just won the lottery. You have two payout options. First, you can agree to take 30 equal annual payments, with the first payment to be made today at Year 0 and the last payment to be made at Year 29. Alternatively, using an effective annual rate of 6.0 percent, the lottery is willing to convert the annual payments into an equivalent lump sum payment today of $7,295,360.51. You have no immediate need for this money and plan to simply invest and hold the money until Year 45, and believe that you can earn an effective annual rate of 9.75 percent over each of the next 45 years. Looking at your possible ending values at Year 45, you should be able to determine that you will be better off taking the lump sum value today rather than taking the yearly cash flows. Given this information, determine the difference in dollar values at Year 45 between the two options.

Answers

Answer:

The difference in dollar value between option 2 (taking yearly cash flows) and option 1 (taking a lump sump) is USD 490,959,268.96. Therefore, you are better off with taking yearly cash flows which you can invest in a rate of 9.75% to get a larger sum of money at Year 45

Explanation:

Solving this is relatively simply. All you have to do is calculate the dollar amount available to you 45 years later under each of the two options.

So, in option 1, you have 7,295,360.51 available today. Using the future value formula, i.e FV= PV x (1+r)^n.

Where PV is equal to 7,295,360.51

R is equal to 9.75%

N is equal to 45

You will have USD 480,010,302.91 at year 45.

Now the calculation for option 2 is slightly lengthier.

First we calculate the total value of the lottery. We have the present value, the interest rate and the number of periods. Again, we use the FV formula and calculate value at year 30 as 41,900,838.69. We used this calculation because that's how the lottery calculated the figure of 7.3 Mn as todays lump sum amount. All they did was discount the lottery amount 30 years at a rate of 6%. We used the same formula to derived the lottery sum that they used.

Now, we will get equal installments each year up till year 29 which means (just divide the lottery amount by 30 years) we will get USD 1,396,694.62 each year till year 29. For each year's cash flow, we will calculate the future value at year 45. The formula will remain the same. Only the number of periods will change. So for example, at year 0, we will use the number of periods in our FV formula as 45. Whereas at the last installment date i.e. year 29, we will use 16 as the number of periods left till year 45. Once we have values for all periods, simply sum them up which will produce a value of USD 970,969,571.87 which is the the sum available to us in option 2.

As we can see, simply subtract the sum in option 1 from option 2 which indicates that we are better off under option 1 by a whopping USD 490 Mn!

If a household's income rises by 30%, its budget constraint will A) shift out parallel to the old one. B) pivot at the Y-intercept. C) shift in parallel to the old

Answers

Answer:

the answer is A i think

Explanation:

The downward slope of a demand curve illustrates the pattern that as ________ decreases, ________ increases.

Answers

Potential energy, kinetic energy

Is the following syllogism valid? No Internet service provider is a small business. Some businesses in our town are small businesses. Some businesses in our town are not Internet service providers.

Answers

Answer: E. Yes, regardless of whether we take the traditional or modern view of existential import.

Explanation:

The options are:

a. There is not enough information to determine the answer.

b. No, regardless of whether we take the traditional or modern view of existential import.

c. Yes if we take the traditional view of existential import, but no if we take the modern view.

d. Yes if we take the modern view of existential import, but no if we take the traditional view.

e. Yes, regardless of whether we take the traditional or modern view of existential import.

A syllogism is a reasoning that is formed when a conclusion is being drawn based on two given propositions.

With regards to the question, we can deduce that the syllogism is valid as the conclusion is derived from the two propositions that are given. In this case, the correct option will be "Yes, regardless of whether we take the traditional or modern view of existential import".

Teachers, nurses, and counselors are all part of which of the following:
A.
Education and training
B.
Human services
C.
The social occupational code
D.
Health sciences

Answers

A. Education and training
I hope this helped you:)

4. Should fringe benefits provided by your employer (health care, dental, contributions to your retirement plan) be counted in GDP

Answers

Answer:

Yes

Explanation:

Yes, it should be counted in the GDP. Mainly because the GDP revolves around measuring the total income earned and spend from products or services. When you work for an employer you are receiving income from that employer and benefits would also be considered part of your income. Even though these benefits are being paid by your employer they are still considered income, and you would still be paying for these services yourself if the employer was not paying them. Therefore, it would make sense that it is included as received income and counted towards the GDP.

15. You have just purchased a car and taken out a $50,000 loan. The loan has a 5-year term with monthly payments and an APR of 6%. How much will you pay in interest, and how much will you pay in principal, during the first month and second month

Answers

Answer:

find answers below

Explanation:

First and foremost, we need to determine the payment on a monthly basis in order to proceed further as shown thus:

PV(loan amount)=monthly payment*(1-(1+r)^-n/r

loan amount=$50,000

the monthly payment is the unknown

r=monthly interest rate=6%/12=0.5%

n=number of monthly payments in 5 years=5*12=60

50,000=monthly payment*(1-(1+0.5%)^-60/0.5%

50,000=monthly payment*(1-(1.005 )^-60/0.005

50,000=monthly payment*(1-0.74137220 )/0.005

50,000=monthly payment*0.25862780 /0.005

monthly payment=50,000*0.005/0.25862780 =$966.64  

first month:

amount paid $966.64  

interest=0.5 %*$50,000=$250

principal paid=monthly payment-interest=$966.64-$250=$716.64

loan balance=$50,000-$716.64=$49,283.36  

second month:

amount paid $966.64  

interest =0.5%*$49,283.36=$246.42  

principal paid=$966.64-$246.42 =$720.22

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability.

Answers

Answer:

The answer is unlimited

Explanation:

Unlimited liability happens in a situation where the business cannot be diffentiated from its owners like sole proprietorship.

This type of liability assumes full legal responsibility of all business debts i.e it is required by law for the owner to pay all debt obligations as there is no distinction between the business and the owner.

Oriole Corporation acquired a patent on May 1, 2020. Oriole paid cash of $81000 to the seller. Legal fees of $1400 were paid related to the acquisition. What amount should be debited to the patent account

Answers

Answer:

$82,400

Explanation:

Calculation for What amount should be debited to the patent account

Using this formula

Patent account=Cash+Legal fees

Let plug in the formula

Patent account=$81,000+$1,400

Patent account=$82,400

Therefore the amount that should be debited to the patent account is $82,400

When growth is high, extending stock option grants to lower levels of the organization as Titan did is likely to

Answers

Answer:

increase attachment in the organization

Explanation:

In an organization like Titan, when the growth of the organization is high, the extending stock option that grants to the lower levels of the organization is more likely to provide employees at all the levels to have a share in the growth of the organization which increases the attachment of the employees to that particular organization.

One of the most strategies in developing a strong sense of personal responsibility is to what

Answers

Answer:

Take responsibility for your thoughts, feelings, words, and actions.

Explanation:

There are various strategies to take in developing a strong sense of personal responsibility, one of the topmost strategies is to "Take responsibility for your thoughts, feelings, words, and actions."

This will surely help in determining how to react to situations, without being pushed by others or blame others for the outcome.

Also, it will not affect your perception and duty to yourself. But rather spur you to do what you believe in and what will benefit you.

Company Z has experienced a decrease in sales in the last quarter. Additionally, their customer surveys have shown that customer satisfaction has also decreased by 30%. Customers often complain about lack of parking, high prices, and slow response times to customer concerns. Determine the practical steps Company Z can use to improve sales by using the Decision Making Process steps highlighted in this lesson.
Here are the five steps of the Decision Making Process:
State the problem
List the options
Determine the pros and cons
Choose the best option
Evaluate the decision/choice

a. Start the Decision Making Process by stating the two obvious problems that apply to Company Z

Answers

Answer:

Company Z has experienced a decrease in sales in the last quarter.

Besides, their customer satisfaction has also decreased by 30% that customers often complain about lack of parking, high prices, and slow response times to customer concerns.

Explanation:

The Decision-Making Process by stating the two obvious problems that apply to Company Z will be a decrease in sales and a lack of customer service.

Who is the customer?

A customer can be defined as the person who buys or takes the services by paying the summer amount of money. It's the customer who decides what he needs or wants.

The main issue with the companies be can be the decrease in the sales as the sales has a significant 30% the managers need to discuss all the causes and plan for what also should be done to increase it

Also, customers are reaching out to customer care services and the response time they are getting out is very high which sometimes irritates the customer, secondly, the response that they should get should be proper and timely.

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If in 2009 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then what is Luther's Enterprise Value

Answers

Answer:

163.2 million

Explanation:

The enterprise value is calculated by first obtaining the market value of the equity which is done by multiplying the number of outstanding shares by the value that each individual share is currently trading at. Then you add all existing debt to the market value of the equity, and finally you subtract all liquid cash available. Since neither debt or cash is provided as values in this question we can assume there is none and simply calculate the market value of the equity as the Enterprise value...

10.2 * 16 = 163.2 million

When buying a home, it is important to factor in future costs, like ___________.
a.
Realtor fees
b.
Down payment
c.
Utility costs
d.
Closing fees

Answers

Answer: Almost positive it’s C. Utility costs

When buying a home, it is important to factor in future costs, like utility costs. Thus, option (c) is correct.

What is the cost?

The term cost refers to the actual money are spent on the manufacturing of the product. The product are manufacture to spend on money are raw material, transportation, wages, salary, and other expenses add. The all expenses are added to identify the cost.

Utility costs refer to the disbursals subjected by using utilities such as physical phenomenon, water, waste material disposal, heating, and sewerage. These costs are associated with ongoing telephone and internet services as well. The future cost also like the utility cost.

As a result, the significance of the important to factor in future costs, are the aforementioned. Therefore, option (c) is correct.

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