Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 7: What is the Present Value of each of the following? 7A. You expect to be paid $10,000 total for your soybeans on 19-Aug-2022,

image text in transcribed

Question 7: What is the Present Value of each of the following? 7A. You expect to be paid $10,000 total for your soybeans on 19-Aug-2022, today is Feb 19, 2022 Assume a discount rate of 5% per annum, assume 'whole months' (not days or anything more complex). 7B. Today is March 19th, 2022. You sold and expect to deliver into the following: 1 SN22 at $10.000/bu AND 1 SQ22 at $10.25/bu AND 1 SU22 at $9.80/bu Assume a discount rate of 5% per annum, assume 'whole months' (not days or anything more complex.) 7C. Today is March 19th, 2022. You paid $200 today for the ability to sell spot soybeans at 5000bu on 19-July-2022 at $10.05/bu AND 5000 bu on 19-Aug-2022 at $10.50/bu AND 5000 bu on 19-Sept-2022 at $9.75/bu Assume a discount rate of 5% per annum, assume 'whole months' (not days or anything more complex.) 7D. Which of either 7B or 7C give you a higher PV of total revenues? Question 7: What is the Present Value of each of the following? 7A. You expect to be paid $10,000 total for your soybeans on 19-Aug-2022, today is Feb 19, 2022 Assume a discount rate of 5% per annum, assume 'whole months' (not days or anything more complex). 7B. Today is March 19th, 2022. You sold and expect to deliver into the following: 1 SN22 at $10.000/bu AND 1 SQ22 at $10.25/bu AND 1 SU22 at $9.80/bu Assume a discount rate of 5% per annum, assume 'whole months' (not days or anything more complex.) 7C. Today is March 19th, 2022. You paid $200 today for the ability to sell spot soybeans at 5000bu on 19-July-2022 at $10.05/bu AND 5000 bu on 19-Aug-2022 at $10.50/bu AND 5000 bu on 19-Sept-2022 at $9.75/bu Assume a discount rate of 5% per annum, assume 'whole months' (not days or anything more complex.) 7D. Which of either 7B or 7C give you a higher PV of total revenues

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

Research On Professional Responsibility And Ethics In Accounting Volume 24

Authors: Charles Richard Baker

1st Edition

180071758X, 9781800717589

More Books

Students also viewed these Accounting questions

Question

A 300N F 30% d 2 m Answered: 1 week ago

Answered: 1 week ago