If you hold a valid contract that will pay you $8,000 cash 10 years from now and

Question:

If you hold a valid contract that will pay you $8,000 cash 10 years from now and the going rate of interest is 10 percent, what is its present value?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Accounting

ISBN: 978-0078025518

2nd edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

See More Books

Question Posted: Feb 27, 2015 10:28 AM

See More Questions

You can buy an annuity contract that will pay you $1,000 a year (end of year) for the next 10 years. The contract costs $6,000 today. If you think you should earn 6 percent on such investments,...
If you hold a 900-cm2 square plane mirror 45 cm from your eyes and can just see the full length of an 8.5-m flagpole behind you, how far are you from the pole?
The current market rate of interest is 8 percent. At that rate of interest, businesses borrow $500 billion per year for investment and consumers borrow $100 billion per year to finance purchases. The...
In Exercises confirm that the Integral Test can be applied to the series. Then use the Integral Test to determine the convergence or divergence of the series. n=1 2 3n + 5
a. How is a customs union different from a free-trade area? Provide examples of each. b. Why do some economists prefer multilateral trade agreements to regional trade agreements?
Distinguish among the three methods of allocating the costs of sendee departments to production departments.
Tacoma Narrows Bridge The percent distribution of the number of occupants in vehicles crossing the Tacoma Narrows Bridge in Washington is shown in the pie chart. Find each probability. (Source:...
Last year Wyeth Company recorded an impairment on an asset held for use. Recent appraisals indicate that the asset has increased in value. Should Wyeth record this recovery in value?
Sales : Year 1 Nil Year 2 $ 40,000 Year 3 -5 $ 50,000 Costs: Fixed cost Year 1-5 $ 5,000 Variable cost 20% of sales Investment $ 25,000 Terminal Value of Investment $ 10,000 Depreciation 10% of...
"No shows" are the people with reservations who fail to arrive. The following table shows the number of no shows each day at a hotel over the last 125 business days. Number or No shows Frequency 0 61...
If you deposited $10,000 in a savings account that earns 10 percent, how much would you have at the end of 10years?
What do a positive NPV and a negative NPV indicate about an investment?
In Exercises 2734, evaluate the limit. 4+6et lim 1--005-9et
At 3 1 st March, 2 0 2 3 , AB Ltd , had an Authorized Capital of K 3 5 , 0 0 0 divided into 1 0 , 0 0 0 7 . 5 % noncumulative per share being due on 3 0 th June, 1 9 6 4 . per share paid, the...
A Leadership and Workforce Development Perspective. The literature review should discuss the related literature, organized by topic or themes (not a list of sources). A literature review includes...
Critical Success Factors (CSF) are elements that are necessary for an organization or a project to attain its objectives. For example, Chief Executive support is a CSF for corporate sustainability...
Ultra Ceramic Products presented the following data for its operations for the month of October, 2020: Dept 1 Work in process, July t. 1(Conversion costs, 60%) 7,000 units Transferred to Dept 2 Work...
Choose a global organizational leader who demonstrated how a high level of ethical communication via social media technologies have worked best at building trust with virtual stakeholders. Identify a...
Discuss recent NLRB rulings dealing with the employeremployee relationship, and briefly discuss the issue of union avoidance and suppression.
A circular concrete shaft liner with Youngs modulus of 3.4 million psi, Poissons ratio of 0.25, unconfined compressive strength 3,500 psi and tensile strength 350 psi is loaded to the verge of...
In March 2021, Fed Chair Powell gave the following response to a reporters question: When we seek to achieve low unemployment, high levels of employment, which is our mandate, you know, we think we...
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of goods...
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of goods...
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of goods...
(1 point) Bill makes annual deposits of $1900 to an an IRA earning 5% compounded annually for 14 years. At the end of the 14 years Bil retires. a) What was the value of his IRA at the end of 14...
Which of the following concerning short-term financing methods is NOT CORRECT? Short-term bank loans typically do not require assets as collateral. Firms generally have little control over the level...
Kingbird Corporation is preparing its December 31, 2017, balance sheet. The following items may be reported as either a current or long-term liability. 1. On December 15, 2017, Kingbird declared a...

If you hold a valid contract that will pay you $8,000 cash 10 years from now and

Question:

Step by Step Answer:

From Present Value of 1 table ...View the full answer

Managerial Accounting

Students also viewed these Managerial Accounting questions