Suppose an initial investment of $100 will return $50/year for three years(assume the $50 is received each year at the end of the year). Is this a profitable investment if the discount rate is 20%? Show calculations

Answers

Answer 1

The total present value of the cash flows is $105.32, which is greater than the initial investment of $100. Since the present value of the cash flows is higher than the initial investment, this investment is not profitable at a discount rate of 20%. In order for the investment to be profitable, the present value of the cash flows would need to be higher than the initial investment.

To determine the profitability of the investment, we need to calculate the present value of the cash flows and compare it to the initial investment. The present value (PV) is calculated using the formula PV = CF / (1 + r)^n, where CF is the cash flow, r is the discount rate, and n is the number of periods.

For this investment, the cash flow is $50 per year for three years, and the discount rate is 20%. Calculating the present value for each cash flow:

PV(year 1) = $50 / (1 + 0.20)^1 = $41.67

PV(year 2) = $50 / (1 + 0.20)^2 = $34.72

PV(year 3) = $50 / (1 + 0.20)^3 = $28.93

To find the total present value, we sum up the present values of each year's cash flow:

Total PV = PV(year 1) + PV(year 2) + PV(year 3) = $41.67 + $34.72 + $28.93 = $105.32

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Related Questions

How is a held-to-maturity security reported on the balance sheet when there are expected credit losses?
A. Face Value
B. Amortized Cost
C. Present Value of Principal
D. Present Value of Principal and Interest

Answers

The held-to-maturity security reported on the balance sheet when there are expected credit losses by  B. amortized cost.

A held-to-maturity security is reported on the balance sheet at its amortized cost, which is option B. This means that the security is initially recorded at its cost and then adjusted for any amortization of premiums or discounts over the life of the security. However, if there are expected credit losses, the security's carrying amount is reduced by the amount of the expected credit losses. This reduction is reported as an allowance for credit losses on the balance sheet.

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I don’t understand this and need help

I dont understand this and need help

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I think tools, design, and materials

The actual number of patients at Providence Emergency Medical Clinic for the first six weeks of this year fallows Week Actual No. of Patients 45 2 48 57 39 46 55 Clinic administrator Dana Schniederjans wants you to forecast patient numbers at the clinic for week 7 by using this data. You decide to use a weighted moving average method to find this forecast. Your method uses four actual demand levels, with weights of 0 333 on the present period, 0.250 one period ago, 0 250 two periods ago, and 0 167 three periods ago a) What is the value of your forecast? The value of the forecast is patients (round your response to two decimal places).

Answers

The value of our forecast for week 7 using the weighted moving average method is 48.084.

What exactly is emergency care in the medical field?

Emergency care in the medical field refers to immediate medical treatment provided to patients suffering from sudden and severe medical conditions or injuries that require urgent attention, often in an emergency department or ambulance setting.

To calculate the weighted moving average forecast for week 7, we need to multiply the actual demand levels for the past four weeks by their respective weights and then add up the results. Using the given weights of 0.333, 0.250, 0.250, and 0.167 for the present period, one period ago, two periods ago, and three periods ago, respectively, we have:

Forecast for Week 7 = (0.333 × 55) + (0.250 × 46) + (0.250 × 39) +

(0.167 × 57)

= 18.315 + 11.5 + 9.75 + 9.519

= 48.084

Therefore, the value of our forecast for week 7 using the weighted moving average method is 48.084.

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a company reported on its balance sheet: equipment of $10,000 and accumulated depreciation of $2,000. book value for the equipment equals:

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The book value of the equipment when there is equipment of $10,000 and accumulated depreciation of $2,000 is $8,000.

How do you determine the book value of the equipment?

The book value of the equipment is calculated as the original cost of the equipment minus accumulated depreciation.

In this case, the original cost of the equipment is reported as $10,000 and the accumulated depreciation is reported as $2,000.

So, the book value of the equipment can be calculated as:

Book value = Original cost - Accumulated depreciation

Book value = $10,000 - $2,000

Book value = $8,000

Therefore, the book value of the equipment is $8,000.

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What happens to the price if it becomes a perfectly competitive market?

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A perfectly competitive firm is referred to as a price taker because the pressure of competing firms forces them to accept the market's prevailing equilibrium price. In a perfectly competitive market, if a company raises the price of its product by even a penny, it will lose all of its sales to competitors.

Any profit-maximizing producer in perfect competition faces a market price equal to its marginal cost (P = MC). This implies that the price of a factor equals the marginal revenue product of the factor. The market demand curve slopes downward in a perfectly competitive market because it measures how much of a good all of the market's consumers will demand at each price.

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answer now and if its the right answer i will give a brainleist <3
Why was the era of Roman Emperor Justinian I (529–534) considered significant for the concept of laws throughout history?

Justinian I traveled throughout the Roman Empire in order to obtain the wishes of all his citizens.
Justinian I studied the law and brought attention to a wide variety of legal details.
Justinian I gathered all the legal experts to show how consensus is used in creating laws.
Justinian I was responsible for codifying many laws into a unified source of civil law.

Answers

Emperor Justinian stands out because he was responsible for codifying many laws into a unified source of civil law (option D)

Who was Justinian I?

Flavius Justinian (482-565) was a renowned Roman emperor, better known as Justinian I the Great. His rule began in the year 527 and lasted until his death.

As emperor he focused on the task of reviving the former greatness of the classical Roman Empire, reconquering much of the lost territories of the Western Roman Empire.

On the other hand, one of his most important legacies is the uniform compilation of Roman law in the work of the Corpus Iuris Civilis, which is still the basis of the civil law of many modern states.

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if a buyer's willingness to pay for an item is $10, and the buyer purchases the item for $8, what is the buyer's economic surplus?

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The buyer's economic surplus is $2, which is the difference between the buyer's willingness to pay ($10) and the purchase price ($8).

The buyer's economic surplus is a concept that measures the benefit a buyer receives from purchasing an item. It is determined by calculating the difference between the buyer's willingness to pay for the item and the actual price paid. In this scenario, the buyer's willingness to pay is stated as $10, while the purchase price is $8.

By subtracting the purchase price from the willingness to pay, we find that the buyer's economic surplus is $2. This indicates that the buyer has gained an additional $2 in value by purchasing the item at a price lower than their maximum willingness to pay. The economic surplus represents the buyer's perceived gain and can be seen as a measure of the transaction's efficiency and mutual benefit.

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At an open house a listing broker greets a customer. The broker can do all of the following EXCEPT
A) Answer general, publicly advertised questions about the property
B) Be truthful when asked about property defects
C) Negotiate sale terms with the customer
D) Allow them to walk around the property

Answers

At an open house, a listing broker greets a customer. The broker can do all of the following EXCEPT negotiate sale terms with the customer. The correct option is C.

A listing broker at an open house can answer general, publicly advertised questions about the property (option A), be truthful when asked about property defects (option B), and allow potential customers to walk around the property (option D). However, negotiating sale terms with the customer is typically the responsibility of the buyer's agent or the seller's agent, rather than the listing broker. The listing broker's main role is to market the property, provide information, and facilitate potential buyers' viewing of the property.

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_____ refers to the fact that services are perishable and cannot be stored in inventory.

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The term that refers to the fact that services are perishable and cannot be stored in inventory is known as the perishability of services. This means that services are time-bound and cannot be saved or kept for later use, unlike physical products that can be stored in inventory. Once the service is not used within its timeframe, it cannot be recovered or sold again.

Perishability is a critical concept in the service industry because it affects the pricing, marketing, and delivery of services. For example, businesses in the hospitality industry face the challenge of perishability every day. Hotel rooms, airline seats, and concert tickets are examples of perishable services that cannot be stored in inventory. Hence, it is imperative to sell these services at the right price, time, and to the right customer. To address the perishability challenge, service providers need to focus on effective service management strategies that ensure that the services are delivered efficiently and effectively. For instance, hotels can offer different types of rooms, such as standard rooms, suites, and executive rooms, to cater to the different needs and budgets of customers. Similarly, airlines can offer various fares and promotions to encourage travelers to book flights in advance, thereby reducing the risk of empty seats on the day of departure.
In conclusion, the perishability of services is a fundamental concept in the service industry. Service providers need to be mindful of this concept when developing pricing, marketing, and delivery strategies to ensure that they offer high-quality services that meet the needs and expectations of their customers.

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You just graduated from college and are starting your new job. You realized the importance to save for the future and have figured out that you will save $3,000 per month for the next 14 years; and then increase to $8,000 per month for the following 4 years. The amount accumulated at the end of these investments will be your retirement egg nest. You plan to start retirement and start withdrawing monthly amounts the following month (you will be in retirement for 27 years). If your required rate of return is 12% compounded monthly, how much are your monthly withdrawals?

Answers

The monthly withdrawals that need to be made are $16,634.15. If rounded to the closest cent, the total amount that would be withdrawn on a monthly basis after retirement would be roughly $9,815.14.

The monthly withdrawals needed to be made are $16,634.15.The first thing that needs to be done is to find the total amount accumulated over the period of investment. The formula for finding the future value is used here.

This formula is FV = PMT × {[(1 + r)n - 1] ÷ r} + PV × (1 + r)

where PMT = Periodic payment

r = Interest rate

n = Number of payments

PV = Present value

Let us put the given values in this formula. For the first 14 years:

FV = $3,000 × {\([(1 + 0.12/12)^(14×12) - 1]\)÷ (0.12/12)} + $0×\((1 + 0.12/12)^(14×12)\)

FV = $3,000 × \({[(1.01^168) - 1]\) ÷ 0.01} + $0× \(1.01^168\)

FV = $4,426,989.95

For the next 4 years, the formula becomes:

FV = $8,000 × {\([(1 + 0.12/12)^(4×12) - 1]\) ÷ (0.12/12)} + $4,426,989.95×\((1 + 0.12/12)^(4×12)\)

FV = $8,000 × {\([(1.01^48) - 1]\) ÷ 0.01} + $4,426,989.95×\(1.01^48\)

FV = $5,831,227.53

Now that we have the accumulated amount, we can use the formula to find the monthly withdrawals. This formula is:

PMT = FV × r ÷ \({1 - (1 + r)^-n}\)

Let us put the given values in this formula:

PMT = $5,831,227.53 × 0.12 ÷\({1 - (1 + 0.12)^-324}\)

PMT = $16,634.15

Therefore, the monthly withdrawals that need to be made are $16,634.15.

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Communication can most usefully be understood as a(n) Multiple Choice

a) innate human ability.

b) art form for which a chosen few possess raw talent.

c) skill acquired gradually through practice.

d) blunt tool that will always fail to accomplish its goal.​

Answers

A c d I took the quiz trust me

Communication can most usefully be understood as an innate human ability. Thus the correct option is A.

What is communication?

Communication is referred to the exchange of information between two individuals in the form of conversation, opinion, suggestion, or advice with the help of medium or direct interaction.

By allowing us to connect with others and share our problems and perceptions, communication aids in the development of interpersonal relationships. It enables us to convey our emotions.

The likelihood of conflict is reduced when messages are conveyed clearly since there is no possibility for misinterpretation or message modification and helps in better achievement of objectives, especially in team building activities.

Therefore, option A is appropriate.

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Which of the following is a downfall of working daily in production work?

A. It is monotonous.

B. It does not pay well.

C. It requires extensive schooling.

Answers

Answer:

A

Explanation:

please give me a brainlyest

Explanation:

it is monotonous answer a

When you're finished using your Go ogle account, what should you do to help keep your information secure?

A. Reset your password.
B. Create a new username.
C. Send an e-mail.
D. Sign out.

Answers

Answer:

this is a very st upid question but i would say its D

Explanation:

A does make sense somehow but i dont think you would reset your password everytime you using go ogle

i dont know why B should help at all

C makes no sense at all

When you're finished using your Go-ogle account, you should always sign out to keep your information secure. Thus, option 'D' is the correct option.

How to keep your Go-ogle account safe?

Go-ogle uses the strictest security measures to protect your personal data. The Advanced Protection Program protects individuals with sensitive information and high visibility from deliberate online assaults. Chrome's Safe Browsing shields 4 billion devices from dangerous websites, while Advanced Protection does even more thorough checks before each download. It alerts you to potentially hazardous files and may even stop you from downloading them.

Installations of apps are only permitted from trusted shops, such as the app store run by the company that makes your device. You are frequently prompted to grant access to your Go=ogle Account data, such as your contacts, location, or Drive, when you join up for new apps or services. Go=ogle Accounts have built-in security features that verify more than 1 billion stored passwords daily for breaches.

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If the buyer, who has signed a buyer broker contract, finds a For Sale by owner, then?

Answers

Answer:

Then the buyer must tell the broker and have him set up an appointment and handle the negotiations.

Explanation:

If you sign for a buyer-broker contract, then you should know that the broker must be the essential 'lead' when it comes to, say, buying a house.

Jeannine and Ryan, have both been working full-time jobs for many years. They are about to adopt three siblings and are trying to decide if they are both going to keep working. What disadvantage will they likely experience if they choose a single income option?

A.
They will have higher costs for childcare.

B.
They will have a greater amount of financial income.

C.
They will have less time to spend with their new baby.

D.
They will have less disposable income.

Answers

Answer: D

Explanation:

Answer: They will have less disposable income.

Jeannine and Ryan, have both been working full-time jobs for many years. They are about to adopt three

what class is the most important in middle school?
A. History/Social Studies
B. Gym
C. Career
D. Health
E. Math
F. English
G. Science
H. Foreign Language Class(es)

Answers

The most important would be math and ela but as a favorite for me it would be gym cause all we do is talk with each other.

Answer:

first,E then F then G then C and yea

Explanation:

When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must

Answers

When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.

This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.

To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.

Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.

Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.

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a monopoly that can perfectly price discriminate has a marginal revenue curve that is _____ the demand curve for the good that the monopoly produces. if a monopoly can perfectly price discriminate, it produces _____ deadweight loss.

Answers

The marginal revenue curve of a monopoly with perfect price discrimination is steeper than the demand curve. A monopoly doesn't cause any deadweight loss if it can properly price discriminate.

What impact does perfect pricing discrimination have on revenue?

The monopolist will continue to produce until marginal cost matches the price of the good because under perfect price discrimination, the marginal revenue curve corresponds with the market demand curve.

What happens when pricing discrimination is perfect?

The effects of perfect price discrimination: more will be produced than a single-price monopolist (Qp=MC), certain consumers will pay higher prices than they would have otherwise (Pm), while other consumers will pay lower prices.

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On what accounting basis does gasb recommend that governmental fund budgets be prepared?

a) accrual.

b) modified accrual.

c) cash.

d) modified cash.

Answers

The GASB (Governmental Accounting Standards Board) recommends that governmental fund budgets be prepared on a modified accrual basis.  

The modified accrual basis combines elements of both accrual and cash accounting. Under this basis, revenues are recognized when they become measurable and available, meaning when they are both earned and collectible within the current fiscal year or shortly after. On the other hand, expenditures are recognized when they create a liability, such as when goods or services are received.

This basis allows for a more accurate representation of the financial position of governmental funds, as it recognizes both the inflows and outflows of resources. By using the modified accrual basis, governments can better plan and control their budgets.

To summarize, the GASB recommends that governmental fund budgets be prepared on a modified accrual basis to ensure a more accurate financial representation and effective budgeting.

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What accounts are affected. issued check $644 to pay for an advertisement

Answers

Answer:

Bank and Advertisement accounts

Explanation:

Journal entries

Advertisement       A/c Dr     $644

To Bank               A/c                $644  

(Being advertisement expenses made by cheque)

Bank and Advertisement accounts are affected

T/F production possibilities frontiers cannot be used to illustrate trade-offs.

Answers

False. To demonstrate trade-offs, utilise the production possibilities frontiers (PPF). With a specific set of resources and technology, a PPF graphically shows the widest range of combinations of two goods that can be produced.

To demonstrate trade-offs, Production Possibility Frontiers (PPF) can be employed. The PPF denotes the greatest possible pairing of two things that may be generated with a given supply of resources. The omitted creation of the other item serves as a representation of the opportunity cost of producing one good. Since an increase in the production of one good necessitates a decrease in the production of the other good, the PPF visually displays the trade-off between two goods. Due to limited resources, there must be a trade-off between two or more competing purposes. As a result, the PPF is a great tool for explaining trade-offs and assisting individuals and organisations in understanding the decisions they must make when allocating their resources.

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VitaLive has authorized the development of a video game based on new technology. Which of the following is an example of a risk that has to be accepted because it cannot be mitigated?

Answers

Answer:

There is a risk that a competitor may beat them to market with a  similar product.


_______are made of pooled money of shareholders in a company invested
by a fund manager
Mutual Funds
Savings Bonds
Certificates of Deposit

Answers

certificates of deposit

This would be a mutual fund

What does "Certeris Paribus" assume when
calculating how people spend money?
A. The person has held the same job with the same amount of
pay
B. The person has been promoted and makes more money than
before.
C. The person has lost their job and is unemployed at the
moment.
D. The person has taken a second job for additional income.

What does "Certeris Paribus" assume whencalculating how people spend money?A. The person has held the

Answers

ceteris paribus assumes things like confidence and income remain the same, so that we may study simply the interaction between interest rates and the demand for loans and ignore how all the other variables might affect the outcome.

Which aspect of Darron's career matches his lifestyle but is also in conflict with some of his desires? busyness while at work earning money frequent travel strong competition

Answers

Answer:

frequent travel

Explanation:

Since in the question it is mentioned that Darron loves his carrier as it fits with his lifestyle. He knows how to make a money and how to keep busy also he loves travelling plus he wish that he could spend more time with his family members

So here the frequent travel fits in the given situation as he loves travelling so he travel frequently

Therefore the same is considered

Answer:

its travel

Explanation:

on the issuance date, the bonds payable account had a balance of $50,000,000 and premium on bonds payable had a balance of $1,000,000. what was the issue price of the bonds?

Answers

Answer: The answer would be 51,000,000 :D

Explanation:

The issue price of the bonds, when the the bonds payable account had a balance of $50,000,000 and a premium on bonds payable had a balance of $1,000,000, is $51,000,000.

The issue price of the bonds is the sum of the bonds payable account balance and the premium on bonds payable account balance.

In this case, the issue price of the bonds is $50,000,000 (bonds payable account balance) + $1,000,000 (premium on bonds payable account balance) = $51,000,000. Therefore, the issue price of the bonds is $51,000,000.

To summarize:

- Bonds payable account balance: $50,000,000
- Premium on bonds payable account balance: $1,000,000
- Issue price of the bonds: $50,000,000 + $1,000,000 = $51,000,000

In conclusion, the issue price of the bonds is $51,000,000.

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List at least three character traits you think businesses are looking for during the interview process. Explain why businesses want to find these traits in someone they hire.

Answers

Flexibility, decisiveness, and being a team player are the three character traits that businesses are looking for during the interview process.

Flexibility: Today's world is the home of multitaskers, no company is looking for a person who is only good at statistics. Businesses are seeking those who are good at many things such as handling data, leading a team and communicating with others, etc. Decisiveness: Decision-making power or ability is the topmost priority for today's business, as individuals should be quick and sharp in making smart decisions in crucial times and can figure it out in tougher times.Being a team player: An employee should be best with people, businesses are looking for a person who can work with a team and can collaborate for business purposes.

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At the end of the video, there is the implication that "selling out" has a different meaning for today’s teens than for past generations. Do you think this is true? Explain.

Answers

Answer: No, it's still the same

Explanation:

Selling out is the process of having your product completely bought by your customers either at an event or through a period of a day sales. The meaning of the word "sold out" still holds for the past generation and also this generation or teens today

The happy home company produces detergents, toothpaste, liquid soap, and kitchen roll. This company has a product ________ of four lines.

Answers

The happy home company produces detergents, toothpaste, liquid soap, and kitchen roll. This company has a product width of four lines.

A company is a legal entity made by a group of things to undertake and operate a business—commercial or industrial—enterprise. An association concedes the possibility be systematized in differing habits for tax and monetary responsibility purposes contingent upon the allied law of allure area of authority. Company values are the superior law of an arrangement that indicates the arranging's brand and breeding.

Product depth refers to the alternative in produce that a guest offers inside an individual product line. Product depth is main for parties, as they can use it to label currents in their merchandise and determine the brand they offer in agreements of number and variation.

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How should you dress for a phone interview? (Site 1)
online content

Answers

Answer:

You should at least have a nice top on because only the camera will see that. If you are a girl you could just wear a dress, probably a black one because that is what I wore to my interview yesterday because there is no pattern or anything it's just a plain black one, but that was in person. if you're a guy you need to wear a suit and tie,but you could probably just wear shorts because they won't see the bottom half of you

Explanation:

I hope this helps out a little bit :-)

An interview is a formal process by which an employee is assessed for his/her performance by the employer.

For a phone interview, one should be dressed properly as the interviewer can see you through the camera.

For a girl, you should be dressed nicely and no revealing or extra shiny clothes should be wore.

In the case of a man, one should be properly dressed in suits or formal shirts.

Try to wear dark black or blue coloured clothes and sit in a properly lighted area.

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