FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

11. (8 pts) You have an opportunity to buy a business that will earn $70,000 per year continuously over the next eight years. Money can

image text in transcribed
11. (8 pts) You have an opportunity to buy a business that will earn $70,000 per year continuously over the next eight years. Money can earn 3% per year, compounded continuously. Find the present value and the future value of this continuous stream of income and decide if this business worth its purchase price of $660,000. Explain

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Algebra Concepts And Graphs

Introductory Algebra Concepts And Graphs

Authors: Charles P McKeague

1st Edition

1630980110, 9781630980115

More Books

Students also viewed these Mathematics questions

Question

★★★★★
In its 2001 annual report, Qwest Communications International Inc. (Qwest) stated that because of an SEC investigation, it couldnt guarantee that it would not have to restate its earnings (to make...

Answered: 1 week ago

Question

★★★★★
Hayden Corporation provides you with the following information for the month of June: Required Prepare a flexible budget for Hayden Corporation forJune. Actual (based on actual sales of 21,000 units)...

Answered: 1 week ago

Question

★★★★★
=+b) What is the standard deviation of the sample range?

Answered: 1 week ago

Question

★★★★★
The controller of Saratoga Auto Cylinder Company believes that the identification of the variable and fixed components of the firms costs will enable the firm to make better planning and control...

Answered: 1 week ago

Question

★★★★★
Hello, this is an IDS 105 questions. If you can please help answer the 3 questions under Your Initial Post using the chosen discussion of your choice; From a Show You Watched , a Book You Read , or...

Answered: 1 week ago

Question

★★★★★
Which of the following boards was established with the specific aim of increasing investor confidence in IFADs activities and pronouncements

Answered: 1 week ago

Question

★★★★★
What did Target Canada do wrong in their supply chain? What managerial decision errors took place? What was wrong with Target Canada's Information Systems in general? What was wrong with Target...

Answered: 1 week ago

Question

★★★★★
A product that is simple, complete, and "ready," that is to say works well enough is often the winner over a super product that does a lot more but is difficult to use and buggy. What examples of...

Answered: 1 week ago

Question

★★★★★
For these questions use g = 9.80 m/s. You, with m = 75 kg, have just come down a ski slope and are traveling at 18.0 m/s. You continue to slide on the flat terrain at the bottom of the hill, being...

Answered: 1 week ago

Question

★★★★★
Should a company owner engage in a social coupon discount programme? Would you do so if you owned a business? What is the reason for this or why is it not? How would you make certain that your coupon...

Answered: 1 week ago

Question

★★★★★
We live in the industrial era 4.0. This era is marked by the rapid development of the internet which makes it easy for anyone to access various types of online gambling. What are the basic values in...

Answered: 1 week ago

Question

★★★★★
1. Information that is currently accessible (recognition).

Answered: 1 week ago

Question

★★★★★
8. Based on the model in Fig. 10.2 in this chapter, analyse yourself and find out which cell you would place yourself in. Let another person in the group analyse you. Did he/she choose the same cell...

Answered: 1 week ago

Question

★★★★★
9. Take four examples from your own everyday life where someone has tried to influence you. Which of the seven influencing techniques mentioned above were used? Did they use any other influencing...

Answered: 1 week ago

Previous Question Next Question