BUSINESS COLLEGE

An investor can make an investment in a real estate development and receive an expected cash return of $45,000 at the end of six years. Based on a careful study of other investment alternatives, she believes that a 9 percent annual return compounded quarterly is a reasonable return to earn on this investment. How much should she pay for it today?

Answers

Answer 1

Answer:

Answer:

FV= 45,000

I= 9/4=2.25

N=6*4=24

PMT=0

PV=?

Put these in financial calculator

$26,381 is what she should pay for the investment today.

Explanation:

Related Questions

Evergreen Company sells lawn and garden products to wholesalers. The company’s fiscal year-end is December 31. During 2021, the following transactions related to receivables occurred:Feb. 28 Sold merchandise to Lennox, Inc., for $10,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note.Mar. 31 Sold merchandise to Maddox Co. that had a fair value of $7,200, and accepted a noninterest-bearing note for which $8,000 payment is due on March 31, 2022.Apr. 3 Sold merchandise to Carr Co. for $7,000 with terms 2/10, n/30. Evergreen uses the gross method to account for cash discounts. 11 Collected the entire amount due from Carr Co. 17 A customer returned merchandise costing $3,200. Evergreen reduced the customer’s receivable balance by $5,000, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30 Transferred receivables of $50,000 to a factor without recourse. The factor charged Evergreen a 1% finance charge on the receivables transferred. The sale criteria are met.June 30 Discounted the Lennox, Inc., note at the bank. The bank’s discount rate is 12%. The note was discounted without recourse.Sep. 30 Lennox, Inc., paid the note amount plus interest to the bank.Required:1. Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold.2. Prepare any necessary adjusting entries at December 31, 2021. Adjusting entries are only recorded at year-end.3. Prepare a schedule showing the effect of the journal entries on 2021 income before taxes
Determine the amount of money that must be invested now (time 0) at 10% nominal interest, compounded monthly, to provide an annuity of $7 comma 000 per year for 12 years, starting eight years from now. The interest rate remains constant over this entire period of time.
Production estimates for August for Jay Company are as follows: Estimated inventory (units), August 1 12,000 Desired inventory (units), August 31 9,000 Expected sales volume (units), August 75,000 For each unit produced, the direct materials requirements are as follows: Material A ($5 per lb.) 3.0 lbs. Material B ($18 per lb.) 0.5 lb. The total direct materials purchases (assuming no beginning or ending inventory of material) of Materials A and B required for August production is ______.a.$1,170,000 for A; $702,000 for B b.$1,080,000 for A; $1,296,000 for B c.$1,080,000 for A; $648,000 for B d.$1,125,000 for A; $675,000 for B
The Orange Lily Law Firm prepays for advertising in the local newspaper. On January 1, Orange Lily paid $3,600 for six months of advertising. How much advertising expense should Orange Lily Law Firm record for the two months ending February 28 under the a. cash basis? b. accrual basis?
Dana, who is a trained yoga instructor, spends 4 hours on Monday baking and packing 10 boxes of cookies. She sells the cookies for $10 a box. Given that she can also teach yoga for $80 an hour, what is her opportunity cost of baking cookies?A. $220 B. $800 C. $320 D. $420 E. $100

As a result of several factors, aggregate demand decreased during the Great Depression. One factor would be:

Answers

Answer: decrease in expected income

Explanation:

The Great Depression began due to the crash of the stock market in 1929 which caused fear and millions of investors lost their businesses.

This led to the reduction in consumer spending. Also, there was a reduction in investment which caused industrial output decline and decrease in employment opportunities.

Wellington Recycling recycles newsprint, cardboard, and so forth, into received packaging materials. For the coming year, Wellington estimates total manufacturing overhead to be $359,640. The managers are not sure if direct labor hours (estimated to be 9,990) or machine hours (estimated to be 7,982 hours) is the best allocation base to use for allocating manufacturing overhead. Wellington bids for jobs a 31 % markup over total manufacturing cost.After the new fiscal year began, Hollings Paper Supply asked Wellington Recycling to bid for a job that will take 1 ,975 machine hours and t ,700 direct labor hours to produce. The direct labor cost this will be $10 per hour, and the direct materials will total S25,500.

Required:
Compute the total job cost and price if Wellington decided to use direct labor hours as the manufacturing overhead allocation base for the year.

Answers

To calculate the total Job Cost, it is required to add direct Materials with direct Labor and applied overhead.

Computation total job cost

Although when before that first determine the predetermined overhead cost which is

Then = Estimated total manufacturing cost ÷ estimated labor hours

Then = $359,640 ÷ $9,990

After that = $36 per hour

Now the total cost is

Then = Direct material + direct labor + manufacturing overhead
Now, = $25,500 + 1,700 × $10 + $1,700 × $36
After that = $25,500 + $17,000 + $61,200
Then = $103,700

Now the bid price is

Then = Job cost - markup profit
Now = $103,700 - $103,700 × 31%
Then = $103,700 - $32,147
Then = $135,847

Find out more information about Total job cost here:

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Answer and Explanation:

The computation is shown below:

But before that first determine the predetermined overhead cost which is

= Estimated total manufacturing cost ÷ estimated labor hours

= $359,640 ÷ $9,990

= $36 per hour

Now the total cost is

= Direct material + direct labor + manufacturing overhead

= $25,500 + 1,700 × $10 + $1,700 × $36

= $25,500 + $17,000 + $61,200

= $103,700

Now the bid price is

= Job cost - markup profit

= $103,700 - $103,700 × 31%

= $103,700 - $32,147

= $135,847

Your credit card company charges you 1.43 percent per month. What is the APR on your credit card?

Answers

Answer:

APR is 17.16 percent

Explanation:

APR means annual percentage rate and is calculated annually.

APR = 1.43 percent * 12 months = 17.16 percent

Final answer:

The Annual Percentage Rate (APR) for a credit card that charges a monthly interest rate of 1.43 percent is approximately 17.16 percent. This is calculated by multiplying the monthly rate by the number of months in a year.

Explanation:

The Annual Percentage Rate (APR) is the yearly rate charged for borrowing and is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan. The APR on your credit card takes into consideration a monthly interest rate, which in your case is 1.43 percent.

To calculate the APR, you need to multiply your monthly interest rate by the number of months in a year. Thus, 1.43 percent (or 0.0143 in decimal form) multiplied by 12 months gives you an APRof approximately 17.16 percent.

So, the APR on your credit card, if it charges you 1.43 percent per month, would be around 17.16 percent.

Learn more about APR here:

brainly.com/question/12790847

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Comparative advantage is based on the economic concept of:A. marginal cost.

B. opportunity cost.

C. nonsatiety

D. rationality.

Answers

Answer:

B. Opportunity Cost

Explanation:

Comparative Advantage is when an economy can produce certain goods & services at a lower opportunity cost than other trading economies.

Opportunity cost is the cost of next best option forgone while choosing a particular option.

Comparative advantage (production ability at lower opportunity cost) implies: Economy can produce a good/ service by sacrifising lesser amount of other good, than the other economy.

Example : Production Possibilities of 2 countries, 2 goods :-

Good X Good Y Opportunity Cost (Goods Ratio)

Country A 10 30 1:3 (10/30)

Country B 5 10 1:2 (5/10)

Country A can produce Good Y by sacrifising 3 units of Good X, Country B can produce Good Y by sacrifising 2 units of Good X. So, B can produce good Y at lesser opportunity cost than A. Hence, country B has comparative advantage in good Y.

Your company expects to receive CAD 1,200,000 in 90 days. The 90 day forward rate for CAD is $0.80 and the current spot rate is $0.75. If you use a forward hedge, estimate the cost of hedging the receivable if, 90 days later, the spot rate for CAD 90 days later turns out to be $0.82.a. $50,000
b. $50,000
c. $75,000
d. $75,000

Answers

Answer:

Cost of hedging = $24,000

Explanation:

cost of hedging = 1,200,000 * ($0.80 - $0.82) = 1,200,000 * $0.02 = -$24,000

Since the actual forward rate was higher than th eexpected forward rte, the coampny lost money by hedging the operation. The cost of hedging the operation was $24,000.

Tri Fecta, a partnership, had revenues of $378,000 in its first year of operations. The partnership has not collected on $47,000 of its sales and still owes $38,700 on $235,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $28,100 in salaries. The partners invested $47,000 in the business and $26,000 was borrowed on a five-year note. The partnership paid $2,600 in interest that was the amount owed for the year and paid $8,900 for a two-year insurance policy on the first day of business. Ignore income taxes. Compute the cash balance at the end of the first year for Tri Fecta.a) $332,110.b) $161,640.c) $166,290.d) $155,440.