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

Question

1 Approved Answer

An investment pays $2,000 every third year for 45 years (a total of 15 payments). Your opportunity cost is 8% compounded semi-annually. The present value

image text in transcribed
An investment pays $2,000 every third year for 45 years (a total of 15 payments). Your opportunity cost is 8% compounded semi-annually. The present value of this investment is: O a. $4,762.53 O b. $19,639.28 Oc. $13,323.26 O d. $9,666.46 e. $7,317.16

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

Farming As Financial Asset Global Finance And The Making Of Institutional Landscapes

Farming As Financial Asset Global Finance And The Making Of Institutional Landscapes

Authors: Stefan Ouma

1st Edition

1788211871,178821188X

More Books

Students also viewed these Finance questions

Question

★★★★★
Summarize the processes involved in project human resource management.

Answered: 1 week ago

Question

★★★★★
Non-cash items are expenses charged against revenues that do not directly affect cash flow. D Question 20 9 pts the cash According to the Statement of Cash Flows, a decrease in accounts receivable...

Answered: 1 week ago

Question

★★★★★
(3) What do you do that makes the lives of your team members easier?

Answered: 1 week ago

Question

★★★★★
A saver wants $100,000 after ten years and believes that it is possible to earn an annual rate of 8 percent on invested funds. a) What amount must be invested each year to accumulate $100,000 if (1)...

Answered: 1 week ago

Question

★★★★★
The Employee table has the following columns: EmployeelD - positive integer, primary key, auto - increment FirstName - variable - length string LastName - variable - length string Salary - decimal...

Answered: 1 week ago

Question

★★★★★
Solving for Rates What annual rate of return is implied on a $1,000 loan taken next year when $1, 500 must be repaid in year 5? 8.45% 10.00% 12.50% 10.67%

Answered: 1 week ago

Question

★★★★★
Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal...

Answered: 1 week ago

Question

★★★★★
Using the information in the Appendix, prepare the Year 2 journal entries for Musonda's defined benefit pension plan. Instructions: In Column A, select the appropriate account name from the...

Answered: 1 week ago

Question

★★★★★
Consider a 1-period binomial model, where we have three nodes No.0, N1,0, N1,1. We have a cash account with fixed interest rate r = 0.01 - that is, if we have at N0,0 cash account with D dollars, we...

Answered: 1 week ago

Question

★★★★★
Massey Machine Shop is considering a three-year project to improve its production efficiency. Six months ago, it contracted with Dr. Wright to provide a thorough study of whether there would be a...

Answered: 1 week ago

Question

★★★★★
Explain how to do this in simple terms ? this is an example of factor analysis Example => Say X (X1, X2, X12) p= 12 and say a factor model with q 2 is appropriate. has 12(12+1)/2 = 78 elements. A...

Answered: 1 week ago

Question

★★★★★
(LO 7-1) What would you consider to be a prescriptive analytics technique in management accounting? a. Computation of KPIs b. Capital Budgeting c. Comparison of Actual Performance to Budgeted...

Answered: 1 week ago

Question

★★★★★
(LO 7-3, 7-4) We know that a Balanced Scorecard is comprised of four components: financial (or stewardship), customer (or stakeholder), internal process, and organizational capacity (or learning and...

Answered: 1 week ago

Question

★★★★★
(LO 7-3) What is defined as an interactive report showing the most important metrics to help users understand how a company or an organization is performing? a. KPI b. Performance metric c. Digital...

Answered: 1 week ago

Previous Question Next Question