Derek has the opportunity to buy a money machine today. The money machine will pay Derek $13,751.00 exactly 12.00 years from today. Assuming that Derek believes the appropriate discount rate is 4.00%, how much is he willing to pay for this money machine?

Answers

Answer 1

Answer:

$8,588.83

Explanation:

To determine the amount that Derek would pay for the money machine, we are to calculate the present value of the lump sum to be received in 12 years.

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 11 = 0

Cash flow in year 12 = $13,751.00

I = 4%

Present value = $8,588.83

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute


Related Questions

Assuming that the issue is fully subscribed, or sold, which method would generate the most capital for the issuing firm

Answers

Answer:

Best effort sale

Explanation:

In the case when the issue is either fully sunscribed or sold so the method than generate the more capital for the firm i.e. issue is best effort sale

But before that we have to compute the weighted average price i.e.

= $32 × 0.2+ $36 × 0.3 + $42 × 0.5

= $6.4 + $ 10.8 + $21

= $38.2

As the weighted average price is more than the $36 so the best effor sale should be selected

1 Which does not shift the production possibility curve outwards?
A higher prices
B higher productivity levels
C improved education and healthcare
D technological advances

Answers

Answer: A

Explanation:

The Production Possibilities Curve is a curve to show a country/nation's capability to produce something at their current state. Shifting the PPC outwards means there is some kind of an advancement to the countries' resources, technology, etc. Which increases their capacity, making it  possible to reach what was initially unobtainable due to scarcity. Higher prices are usually discussed with demand/supply curves, but even then it does not change the curves since it only increases the quantity supplied or demanded (Ceteris Paribus). Even if something is set at higher prices, that only affects the businesses that go with it. The entire capability of the nation would still stay the same. Is this from AP Macroeconomics?

A $10 million investment in 90 day T-bill has a 1.5% quoted yield. An equivalent size 180 day CD has a 1.6% quoted yield. Which security offers the better return

Answers

The 90-day T-bill with a quoted yield of 1.5% offers a better return than the 180-day CD with a quoted yield of 1.6%.

What is a better return?

Comparatively, we need to annualize the returns to determine the security that offers the better return.

The 90-day T-bill with a quoted yield of 1.5% is compared with the 180-day CD with a quoted yield of 1.6% annually.

Data and Calculations:

                                   Treasury Bill        Certificate of Deposits

Investment costs         $10 million                 $10 million

Quoted yield per 90 days 1.5%

Quoted yield per 180 days                              1.6%

Annualized yield =      $600,000                   $320,000

  ($10,000,000 x 1.5%) x 360/90     ($10,000,000 x 1.6%) x 360/180

Thus, the 90-day T-bill with a quoted yield of 1.5% offers a better return than the 180-day CD with a quoted yield of 1.6%.

Learn more about annualized returns at https://brainly.com/question/15326227

#SPJ1

Did you know that you can save 15 or more on car insurance by switching to geico??
;o

Answers

Answer:

wait really???

Explanation:

Did you know switching to Geico could save you 15% or more on car insurance?

A cost is $11,000 at 1,000 units, $12,000 at 2,000 units, and $13,000 at 3,000 units. Using the high-low method, how much is the fixed portion of these costs

Answers

Answer:

Fixed costs= $10,000

Explanation:

Giving the following information:

Highest activity cost= $13,000

Highest activity= 3,000 units

Lowest activity cost= $11,000

Lowest activity= 1,000 units

To calculate the unitary variable cost and total fixed cost, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (13,000 - 11,000) / (3,000 - 1,000)

Variable cost per unit= $1

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 13,000 - (1*3,000)

Fixed costs= $10,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 11,000 - (1*1,000)

Fixed costs= $10,000

What do you think would make women's contributions to entrepreneurship more visible and less surprising to people?

Answers

Answer: They must continue with their work, which goes beyond being housewives.

Explanation: Today women have achieved a lot to be seen as beings who have the ability to undertake large-scale projects. Women should continue working, positioning themselves in direct positions, undertaking, and above all, supporting each other. Women must continue to demonstrate that they too are capable of occupying positions that have been seen only for men. Today we have women presidents of nations, CEOs and giving more contributions to society.

You should apply for several credit cards and use them even if you don't need them
in order to build your credit history.

True or False

Answers

Most likely false, because it doesn’t help your case.

Answer:

Flase

Explanation: this can hurt your credit

On January 1, a store had inventory of $48,000. January purchases were $46,000 and January sales were $90,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 25% of cost. Merchandise with a selling price of $7,500 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage. Label all figures.

Answers

Answer:

the amount of the fire loss is $16,000

Explanation:

The computation of the amount of the fire loss is shown below

January 1 inventory $48,000

Add purchases $46,000

Goods Available $94,000

Less Cost of Goods Sold ($90,000 × 100 ÷ 125) $72,000

Less Cost of undamaged goods ($7,500 × 100 ÷ 125) $6,000

Goods Lost by Fire $16,000

hence, the amount of the fire loss is $16,000

Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary policy by shifting the supply of money to the:

Answers

Answer:

left as well as the contractionary monetary policy, then bring about the

increase of interest rate as well as reducing equilibrium quantity of money.

Explanation:

Liquidity Preference model can be regarded as a model gives suggestions about investor and interest rate, the model entails that high interest rate as well as premium on securities associated with long-term maturities with higher risk should be demanded by investors, reason behind this suggestions is that most investors will always go for cash as well as available highly liquid holdings, all things been equal. It should be noted that Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary policy by shifting the supply of money to the left as well as the contractionary monetary policy, then bring about the increase of interest rate as well as reducing equilibrium quantity of money.

The process of analyzing alternative long-term investments and deciding which assets to acquire or sell is known as:

Answers

Answer: capital budgeting

Explanation:

The process of analyzing alternative long-term investments and deciding which assets to acquire or sell is known as Capital budgeting.

Capital budgeting is typically used by an organization or a business to know whether it will be worth it if an organization invest in an asset such as new plants, machineries, development projects etc and different alternatives are also considered in order to choose the best option.

Marginal analysis compares ____________ and ____________ to determine the optimal outcome or choice.
a) total benefits, total costs
b) total benefits, marginal costs
c) marginal benefits, total costs
d) marginal benefits, marginal costs

Answers

Answer:

Marginal analysis compares ____________ and ____________ to determine the optimal outcome or choice.

d) marginal benefits, marginal costs

Explanation:

Marginal analysis concentrates on the evaluation of the additional benefits of an activity compared to the additional costs.  Marginal analysis is a decision-making tool that maximizes the potential profits that arise from changes in revenues and costs as a result of some changes in the activity levels.  The analysis is done to ensure that the company does not make a decision based on sunk costs or fixed costs, which do not change as a result of a decision.

What is the value of a stock which has a current dividend (D0) of $1.50, and is growing at the rate of 7%

Answers

Answer: $32.10

Explanation:

Here is the complete question:

What is the value of a stock which has a current dividend (D0) of $1.50, and is growing at the rate of 7%? The investor's required rate of return is 12%. a. $26.75

b. $30.00

c. $32.10

d. $21.42

e. $13.38

Current dividend =D0 = $1.50

Growth rate = g= 7% = 0.07

D1 = D0 × (1+g)

D1 = $1.50 × (1 + 0.07)

= $1.50 × 1.07

= $1.605

The value of the stock will then be:

P0 = D1 / (r - g)

P0= $1.605/(0.12 - 0.07)

P0 = $1.605 / 0.05

P0 = $32.10

Which type of loan is also known as a cash advance loan or a deferred deposit loan?

Answers

A payday loan


Explanation:

A payday loan is a short-term loan, generally for $500 or less, that is typically due on your next payday.

They are also known as cash advance loans, post-dated check loans, check advance loans or deferred deposit loans.

What is the percentage change in the PV of $100 due in 1 year when the interest rate changes from 5% to 10%?
a. Decreases by 60.6%
b. Decreases by 4.33%
c. Decreases by 4.5%
d. Does not change
e. Increases by 4.5%
f. Increases by 60.6%

Answers

Answer:

c. Decreases by 4.5%

Explanation:

Calculation for What is the percentage change in the PV

First step is to calculate the present value when r is 5%

PV = 100 / (1 + 5%)^1

PV = $95.24

Second step is to calculate present value when r is 10%

PV = 100 / (1 + 10%)^1

PV = $ 90.91

Last step is to calculate the percentage change in the PV

Percentage change in the PV = (90.91 - 95.24) * 100 / 95.24

Percentage change in the PV = - 4.55% (Decrease)

Therefore the Percentage change in the PV Decreases by 4.5%

A consumer purchases new windows for his/her home to replace the original windows put in when they house was built, this could be an example of what type of benefit?
A. Resource benefit
B. The actual window
C. Product
D. Sensory benefit

Answers

Answer:

D. Sensory benefit

Explanation:

Sensory benefit is the method that is used by marketers to promote their products in such a way that they appeal to the emotions of buyers.

When a consumer buys this way it is more of an emotional response than a need born of necessity.

In the given instance the consumer purchases new windows for his/her home to replace the original windows put in when they house was built.

It does not mean the old windows are not functioning well, but due to personal preference the consumer decides to replace the windows

Vaughn Manufacturing has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for Vaughn are 60000 Standard and 40000 Supreme. Fixed expenses are $1500000. How many Standards would Vaughn sell at the break-even point?
a) 50000
b) 60000
c) 30000
d) 20000

Answers

Answer:

Standard= 30,000 units

Explanation:

First, we will determine the sales proportion for each product:

Standard= 60,000/100,000= 0.6

Supreme= 40,000/100,000= 0.4

Now, we calculate the break-even point in units for the whole company:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Break-even point (units)= 1,500,000 / 30

Break-even point (units)= 50,000

Finally, the units to be sold for Standard:

Standard= 50,000*0.6

Standard= 30,000 units

2. What has Calvina done wrong?

Answers

Answer:

What are you talking about what is the rest of the question-to make it more since.

Data collected in a survey:
A. will primarily be qualitative.
B. will only be numbers based.
C. can yield numbers and descriptions.
D. can only be descriptive.

Answers

answer choice C. is the best one
The correct answer is c

Should Peterson Accounting have relied on the income statement and footnote information provided by Ms. Rivera’s accountant? Why or why not?

Answers

Answer:

The answer is an affirmative YES.  Peterson Accounting should have relied on the income statement and footnote information provided by Ms. Rivera's accountant because they provided additional information on valuation and also provided a uniform framework for rigorous assessment and evaluation of the assets.

Explanation:

However, reliance should not be automatic.  It should be based on the assessment of the qualification of Ms. Rivera's accountant and the internal controls in place, which helped the preparation of the income statement.

eBuy Corporate Income Statement eBuy Corporation 20x1
Income Statement (in $millions)
Sales 2,877
Cost of Goods Sold (100% variable) 1,012
Operating Expense (100% fixed) 821
Depreciation 364
Earnings Before Interest and Taxes 680
Interest Expense 320
Earnings Before Taxes 360
Taxes 140
Net Income 220
What is the degree of combined leverage for eBuy?

Answers

Answer:

First, calculate the Degree of Operating Leverage (DOL).

The DOL shows the times Net Income Before Interest and Tax will change as a result of a change in sales contribution.

Degree of Operating Leverage (DOL) = Contribution ÷ Net Income

Therefore,

Degree of Operating Leverage (DOL) = $4,000,000 ÷ $3,760,000

                                                              = 1.06

After year 3, free cash flows are expected to grow at a constant 5% a year indefinitely. The discount rate is 10%. The firm has debt of $50 million, cash of $20 million and has 10,000,000 shares outstanding. What is the price of the stock

Answers

Answer:

The price of the stock = $26.69

Explanation:

Missing question at inception is as follows "A firm expects the following free cash flows: Year 1: $10 million, Year 2: $12 million, Year 3: $15 million"

Year   Cash-flows"million    D. rate at 10%     Discounted cash flows

1                 10                         0.9091                          9.0910

2                 12                         0.8264                         9.9168

3                 15                         0.7513                          11.2695

4                 315                       0. 7513                         236.6595

Total                                                                            $266.9368

The price of the stock = Total Present value of cash flows / Number of Shares outstanding

The price of the stock = $266,936,800 / 10,000,000 shares

The price of the stock = $26.69368

The price of the stock = $26.69

Thus, the price of the stock is $26.69 per share

Note:

Present value of future cash flows at year 3 = 15*(1.05/10%-5%)  = 15*(1.05/5%) = 15 * 21 = $315 million

Discount rate for each year = 1/(1+r)^1 = 1/(1+0.10)^1 = 1/1.10 = 0.90909

Which franchise model legally obligates a franchisee to replicate all aspects of the franchisor’s business?


In case of a _____________________ franchise, the franchisee is contractually bound to replicate all aspects of the franchisor’s business.

Answers

Answer:

Business

Explanation:

Mark my answer as brainliest and thank me

technical school provide formal.......?​

Answers

Answer:

Sin la escuela técnica proporciona formalmente recurso muy importantes para los estudiantes debido a su exigencia académica y de rendimiento para lo cual los estudiantes deben estar preparados para así poder lograr los objetivos de la escuela técnica y otras metas.

Explanation:

Gracias.

#cuidemonosdesdecasa.

Homeowners insurance covers loss of a home caused by which of the following two factors? fire inability of owner to pay mortgage natural disaster failure to pay property taxes

Answers

Answer:

fire & natural distaster.

Explanation:

homeowners insurance covers things that can't be prevented. :)

Answer:

vyvj be uvuctz h ycbj xyy

Which of these is NOT one of the documents that a project manager can refer back to in order to make sure that all planned work has, in fact, been completed

Answers

Answer: d. Resource Breakdown Structure (RBS)

Explanation:

The options are:

a. Work Breakdown Structure (WBS)

b. Project Charter

c. Project Scope Statement

d. Resource Breakdown Structure (RBS)

The documents that a project manager can refer back to in order to make sure that all planned work has, in fact, been completed are the project charter, project scope statement, work breakdown structure. They can all be used to ensure that whatever was meant to be done have all been completed and that nothing is left out.

The project charter simply contains the objectives of the projects and how the project will be done. The project scope statement contains the deliverable of the project,and everyone that the project will impact upon.

The work breakdown structure is used to divide the work into smaller parts for efficiency and effectiveness sake.

It should be noted that the resource Breakdown Structure (RBS) is not part of the documents that the project manager should refer back on.

What is the present value of receiving $100 investment two years from now at a 10 percent annual discount rate

Answers

Answer: $121

Explanation:

The question simply wants us to find the present value of receiving $100 investment two years from now at a 10 percent annual discount rate.

This can be easily solved as follows:

For the first year, the $100 will be worth:

= $100 + ($100 × 10%)

= $100 + ($100 × 0.1)

= $100 + $10

= $110

The worth at the end of the second year will then be:

= $110 + ($110 × 10%)

= $110 + $11

= $121

For the current fiscal year, Purchases were $310,000, Purchase Returns and Allowances were $4,600 and Freight In was $25,000. If the beginning merchandise inventory was $190,000 and the ending merchandise inventory was $91,000, the Net Delivered Cost of Purchases is:________.

Answers

Answer: $330,400

Explanation:

Based on the values provided in the question, the net delivered cost of purchases will be:

Purchases = $310,000

Less: Purchases return = $4600

Add: Freight in = $25,000

Net delivered cost of purchases =$330,400

What is the equation used to calculate profit and loss?
a. Sales + cost of goods sold – other expenses b. Collateral + sales expenses
c. Sales - cost of goods sold – other expenses d. Sales - collateral – expenses​

Answers

Answer:

c. Sales - cost of goods sold – other expenses

Explanation:

A business is profitable when its revenues exceed expenses.  Revenue is the money realized from sales. Expenses are either direct expenses or indirect expenses.

Direct expenses refer to the costs that can be linked to a particular product. They include labor cost, materials, and factory overheads cost. Direct costs are also referred to as the costs of goods sold.

Indirect expenses are the operating cost of a business. They can not be traced to specific goods. They include items such as rent, internet, telephone, administrative salaries, and insurance.

Is standardizing physical distribution function true or false

Answers

Answer:

Ture

Explanation:

.....................

what should i do for college?

Radiology
Nursing
Crime Scene Technician
X-ray Technician
Vet Assistant
Dental Assistant
Accounting
Elementary Teacher
Pre-School Teacher

Answers

Crime scene technician
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