An investment offers €4,000 per year for 10 years, with the first payment occurring one year from now. (Do not include the euro sign (€). Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Required:
If the required return is 9 per cent, what is the value of the investment?

Answers

Answer 1

Answer:

25,670.80€

Explanation:

this is an ordinary annuity since the first payment occurs one year from now. The present value of an ordinary annuity is given by the following formula:

present value = annual distribution x PV annuity factor

annual distribution =4,000PV annuity factor, 9%, 10 periods = 6.4177

present value = 4,000 x 6.4177 = 25,670.80€


Related Questions

list the types of associations that should be included in every succesful network

Answers

Answer:

personal, professional, organizational, opportunistic, and online

Explanation:

List the five types of associations that should be included in every successful network. answer: personal, professional, organizational, opportunistic, and online.

Communication and control two of the reasons that consumer do which of these?
(Multiple Answers)

Sell online
Shop Online
Buy Online
Compete Online

Answers

Oh yes I am so happy that we can do this together for the first week and a week I will send you a picture and send it to you you know what I look like for oop and I will send you some pics of you and your bf and I

Chaikin Money Flow is calculated by summing the ADs over the past _____ days and dividing that sum by the total volume over the past _____ days.

a. 14, 21
b. 21, 14
c. 14, 14
d. 21, 21

Answers

Answer:

d. 21, 21

Explanation:

The Chaikin Money Flow is a model (indicator) that was developed by Marc Chaikin in the 1980s and it is typically used by financial institutions or experts to monitor the volume-weighted average of accumulation and distribution of a stock for a specific period of time. Thus, the default or standard period for the Chaikin Money Flow is 21 days

Hence, Chaikin Money Flow is calculated by summing the average of the daily money flow (ADs) over the past 21 days and dividing that sum by the total volume over the past 21 days.

Crawl Inc., has 1,000 shares of 6%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2017, and December 31, 2018. The board of directors declared and paid a $2,000 dividend in 2017. In 2018, $10,000 of dividends are declared and paid. What are the dividends received by the common stockholders in 2018

Answers

Answer:

total dividends distributed to common stock $6,000

dividends per common stock $0.12

Explanation:

preferred stock dividends = 1,000 x 6% x $50 = $3,000

since they are cumulative, if the dividends are not paid during one year, they must be paid in the next periods

the distribution of the $10,000 in dividends in 2018:

preferred dividends = $1,000 + $3,000 = $4,000common stock dividends = $6,000

dividends per common stock = $6,000 / 50,000 = $0.12

Determine the average rate of return for a project that is estimated to yield total income of $402,300 over five years, has a cost of $524,500, and has a $71,500 residual value. Round to the nearest whole number. fill in the blank 1 %

Answers

Answer: 27%

Explanation:

The Average rate of return is calculated by;

= Estimated Average Annual income / Average Investment

Estimated Average annual income = Total income/ years income is accrued

= 402,300/5

= $‭80,460‬

Average Investment = (Initial cost + Residual value) / 2

= (524,500 + 71,500) / 2

= $‭298,000‬

Average rate of return = 80,460/298,000

= 0.27

= 27%

A manufacturing receives the following order for calculators:

July 5,000 units
August: 6,000 units
Setember 5,000 units

The manufacturing provided the following information for manufacturing the calculator:
Production lead time: 7 days
Quality: 5 errors per million calculators

Required:
What are the production requirements in units for the month of July?

Answers

Answer:

The production requirement for the month of July in units is 5001 units.

Explanation:

In the given case, manufacturer receives the order for calculators for month July is 5000 units

In this case it is given as the quality of the units produced are 5 defect products for 1 million units.  

Defect ratio = (Defect products produced/total production produced) × 100

Defect ratio = (5 / 1000000) * 100

Defect ratio = 0.0005%

In the given case the production requirements are asked for only July month.

As per orders received, the manufacturer has to produce 5000 units.  It means, manufacturer has to produce the required number of units plus possible defect units.  It means, to produce required good quality products, the manufacture may produce some defective products based on defect ratio

Production requirements = Required good quality products + (required good quality products × defect ratio)

= 5000 units + (5000 × 0.0005%)

= 5000 units + 0.0025 units

= 5000.0025 units

= 5001 units

As manufacturer cannot produce the 0.0025 units the manufacturer has to produce 1 unit to compensate defective products for production of 5000 good quality products.  Therefore, the production requirement for the month of July in units is 5001 units.

Which of the following is NOT a reason to complete the Free Application for Federal Student Aid (FAFSA)?

Answers

Answer:

its no obligadp

Explanation:

The option which is not the reason to complete the Free Application for Federal Student Aid is It allows you to be eligible for early admission. Thus, option second is correct.

What is a Free Application for Federal Student Aid?

The Free Application for Federal Student Aid (FAFSA) is a document that present and projected college students in the United States must fill out to establish their eligibility for federal student aid.

The Free Application for Federal Student Aid was intended to provide financial assistance to students from low-income families. These grants are meant to assist students to concentrate on their academics without having to work to pay their tuition.

Applicants with outstanding academic records or shown achievements in other areas are more likely to be admitted early. Income level is unlikely to be used as a criterion for early admission. Therefore, it can be concluded that option second is correct.

Learn more about  Federal Student Aid here;

https://brainly.com/question/10737536

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Your question was incomplete, probably the complete question was....

It allows you to be eligible for federal student aid.

It allows you to be eligible for early admission.

It allows you to be eligible for some grants.

It allows you to be eligible for many scholarships

Suppose Americans decide to save more of their incomes. If banks lend this extra saving to businesses, which use the funds to build new factories, this leads to _______ (faster or slower) growth in productivity because workers will have _______ (more or less) equipment with which to work.

a) True or False: Only factory owners will benefit from the higher productivity because they will receive a return on their additional investment.

b) True or False: Society receives a "free lunch" when it builds new factories.

Answers

Answer:

a. False

b. False

Explanation:

Suppose Americans decide to save more of their incomes. If banks lend this extra saving to businesses, which use the funds to build new factories, this leads to faster growth in productivity because workers will have more equipment with which to work.

a. The benefits from higher productivity is received by every participants in the society, i.e., factory owners, in terms of increased profit, workers in terms of increased income (normally equal to value of marginal product).

b. The society doesn’t receive a “free lunch” because there is an inter-temporal trade-off between savings today and increased consumption tomorrow due to increased productivity.

Offering customers different sized garbage bins for different disposal fees/prices, is one form of _______________ system.

Answers

Answer: VARIABLE-RATE OR “PAY-AS-YOU-THROW”

Explanation:

Offering customers different sized garbage bins for different disposal fees/prices, is one form of variable rate system.

Who are customers?

Customers are individuals or organizations who purchase goods or services from a seller or provider. They are the people or entities who pay for and use the products or services that a business offers.

Customers can be individuals, households, businesses, or government entities, and they may make purchases for personal or professional reasons.

The relationship between a business and its customers is a crucial aspect of its success, as satisfied customers are more likely to return for future purchases and recommend the business to others.

Giving customers different sized garbage bins for different disposal fees/prices. It is one form of variable rate system.

Learn more about customers here:

https://brainly.com/question/14365331

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Early in 2020, Tamarisk Equipment Company sold 600 Rollomatics at $5,400 each. During 2020, Tamarisk spent $21,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis.

Required:
Prepare 2020 entries for Tamarisk. Assume that Tamarisk estimates the total cost of servicing the warranties in the second year will be $31,000.

Answers

Answer:

Dr Cash 3,240,000

Cr Sales Revenue 3,240,000

Dr Warranty Expense 21,000

Cr Cash 21,000

Dr Warranty Expense 10,000

Cr Estimated Liabilities Warranties 10,000

Explanation:

Preparation of 2020 Journal entries

Dr Cash 3,240,000

Cr Sales Revenue 3,240,000

(600 x $5,400)

(Being to Record sale of Rollomatics )

Dr Warranty Expense 21,000

Cr Cash 21,000

( Being to record the amount spent on servicing during the year)

Dr Warranty Expense 10,000

Cr Estimated Liabilities Warranties 10,000

(31,000-21,000)

(Being To record the Estimated remaining warranty expense)

Driver Products recently paid its annual dividend of $4, and reported an ROE of 15%. The firm pays out 50% of its earnings as dividends. The stock has a beta of 1.15. The current risk-free rate is 2.7% and the market return is 11.00%. Assuming that CAPM holds, what is the intrinsic value of this stock

Answers

Answer: $90.62

Explanation:

First, we need to calculate the expected return. This will be:

= 2.7 + [1.15 × (11 - 2.7)]

= 2.7 × 9.545

= 12.245

= 12.5

We the calculate the growth rate which will be:

= ROE × (1 - payout ratio)

= 15 × (1-0.5)

= 15 × 0.5

= 7.5

The intrinsic value of this stock will then be:

= 4 × (1+0.075) / (0.12245 - 0.075)

= 90.62

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