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

Question

1 Approved Answer

2 Select the correct answer. Ben sold his small online business for $100,000. The purchaser will pay him $20,000 today, then $20,000 every year for

2 Select the correct answer. Ben sold his small online business for $100,000. The purchaser will pay him $20,000 today, then $20,000 every year for the next four years. Assume that Ben could invest a lump-sum payment today in an account yielding an interest rate of 4% annually. Find the total present value of all five payments. OA. $87,096 B. $88,384 C. $92,598 D. $93,964

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

The Economics Of Money Banking And Finance

The Economics Of Money Banking And Finance

Authors: Peter Howells, Keith Bain

4th Edition

0273710397, 978-0273710394

More Books

Students also viewed these Finance questions

Question

★★★★★
Show that in the limit ??x ?? 0, the difference equation for one-dimensional steady conduction with heat generation, Equation (3.1), is equivalent to the differential equation, Equation (2.27)....

Answered: 1 week ago

Question

★★★★★
As reported in the Wall Street Journal (September 11, 1989), MiniScribe, Inc., inflated its reported profits and inventory through a number of schemes designed to fool the auditors. At that time,...

Answered: 1 week ago

Question

★★★★★
=+The construction proves this: There exist a probability space (9, 5, P), a o-field & in F, and a set H in F, such that P(H) =}, H and & are independent, and & is generated by a countable subclass...

Answered: 1 week ago

Question

★★★★★
Reinfort executed a written contract with Bylinski to purchase an assorted collection of shoes for $3,000. A week before the agreed shipment date, Bylinski called Reinfort and said, We cannot deliver...

Answered: 1 week ago

Question

★★★★★
An inserted calculated field can be put into which pivot table field Columns Row Values Sort

Answered: 1 week ago

Question

★★★★★
Using the information in the first tab ("Problem"), create the proper journal entries in the second tab of the file ("Worksheet"). Each transaction description is numbered (1 - 3).In the Worksheet...

Answered: 1 week ago

Question

★★★★★
A vertical centrifuge, operating at $100 \mathrm{rpm}$, contains an aqueous suspension of solid particles with $S G=1.3$ and radius of $1 \mathrm{~mm}$. When the particles are $10 \mathrm{~cm}$ from...

Answered: 1 week ago

Question

★★★★★
The rallying cry of Donald Trump in the US presidential election in 2016 was to Make America Great Again and to focus on policies that protected and boosted US jobs and US workers. On election, Mr...

Answered: 1 week ago

Question

★★★★★
Compute the variance and the ACF (lag-1 to lag-4) of the following ARMA models with \(\operatorname{Var}\left(a_{t} ight)=1\) : (a) \(z_{t}=0.7 z_{t-1}+a_{t}\); (b) \(z_{t}=0.4 a_{t-1}+a_{t}\); (c)...

Answered: 1 week ago

Question

★★★★★
The optical system of Figure P33.95 consists of a converging lens and a converging mirror. The focal points of the lens are marked by open dots and the center of curvature of the mirror by a solid...

Answered: 1 week ago

Question

★★★★★
In testing the cash discounts on vendors invoices, the auditor did not expect to find any errors in the sample and therefore used attributes sampling techniques. Based upon the statistical...

Answered: 1 week ago

Question

★★★★★
Consistently develop management talent.

Answered: 1 week ago

Question

★★★★★
Create a refreshed and common vision and values across Europe.

Answered: 1 week ago

Question

★★★★★
Provide the best employee relations environment.

Answered: 1 week ago

Previous Question Next Question