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

Question

00
1 Approved Answer

If $10,000 is invested in a certain business at the start of the year, the investor will receive $3,000 at the end of each of

If $10,000 is invested in a certain business at the start of the year, the investor will receive $3,000 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 7% per year?

a. 194

b. 81

c. 162

d. 259

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions

Question

The probability function of a discrete random variable X is given by for some integer n 2 and a suitable constant c. (i) Prove that c = 2. (ii) Find the expected value E(X) and the variance Var(X)....

Answered: 1 week ago

Question

★★★★★
In a study of the effects of stress on illness, a researcher tallied the number of colds people contracted during a 6-month period as a function of the amount of stress they reported during that same...

Answered: 1 week ago

Question

★★★★★
Select the term or phrase the term that best describes the following: On a variable costing income statement the result of subtracting variable costs from revenues. Cost of Goods Manufactured...

Answered: 1 week ago

Question

★★★★★
Research an article in an accounting or business publication about a real world situation where the company accounting was not done properly. The article should discuss the details, the effects on...

Answered: 1 week ago

Question

★★★★★
36. Stock of semi-finished goods is a Ans:1. Fixed capital 2. Working capital 3. Liquid capital 4. Watered capital

Answered: 1 week ago

Question

★★★★★
You are currently working for BestMotors, a US manufacturer. Your main responsibility is managing the shipping of motors from your supplier in China to your company's factory in Michigan. Demand for...

Answered: 1 week ago

Question

★★★★★
________ highlight the number of events (the numerator) relative to potential events (the denominator). a. Trends b. Rates c. Ratios d. Common sizing

Answered: 1 week ago

Question

★★★★★
explain why La Bellissima can use recycled cardboard boxes to A. package up the orders for butter chicken and rice

Answered: 1 week ago

Question

★★★★★
Computerized medical records have promoted ________ in recent years, while industry costs are ________. Question 28 options: a) greater efficiency; rising b) decreased privacy; declining c) greater...

Answered: 1 week ago

Previous Question Next Question