A small business expects an income stream of $8000 per year for a four-year period. (a)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A small business expects an income stream of $8000 per year for a four-year period. (a) Find the present value of the business if the annual interest rate, compounded continuously, is the following. Round your answers to two decimal places. (i) 2% Present Value = $ i (ii) 12% Present Value = $ i (b) In each case, find the value of the business at the end of the four-year period. Round your answers to two decimal places. (i) 2% Future Value (ii) 12% = $i Future Value = $ i A small business expects an income stream of $8000 per year for a four-year period. (a) Find the present value of the business if the annual interest rate, compounded continuously, is the following. Round your answers to two decimal places. (i) 2% Present Value = $ i (ii) 12% Present Value = $ i (b) In each case, find the value of the business at the end of the four-year period. Round your answers to two decimal places. (i) 2% Future Value (ii) 12% = $i Future Value = $ i
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Evaluate 3x - 1 / x - 1. lim
-
The company had 50,000 shares of common stock outstanding throughout the year. In addition, as of January 1, the company had issued 100 convertible bonds ($1,000 face value, 10%). The company has no...
-
A corporation purchased a machine for $60,000 five years ago. It had an estimated life of 10 years and an estimated salvage value of $9,000. The current BV of this machine is $34,500. If the current...
-
Steven Myer and William Riggs are partners in an existing business. Each partner has equity of \($30,000.00.\) On October 1 of the current year, the two partners agree to admit Sandra DeVito as a...
-
The records of Stone Inc. reflect the following data: Work in process, beginning of month4,000 units one-fourth completed at a cost of $2,500 for materials, $1,400 for labor, and $1,800 for overhead....
-
Literature review discussing difficulty for Human Resources finding talent in a shortage in food industry. -Identify current trends and issues affecting the management in HR relevant to the topic....
-
A marketing manager should try to understand the legal environment--and know how to work within it. Legislation and legal cases often tend to focus on pricing matters, because prices are highly...
-
Describe how address translation works in a paged memory system, including the role of the translation lookaside buffer (TLB).
-
Assuming a consistent 4 hours of peak energy production over the number of days in the billing cycle, calculate the energy (kWh) generated by a single Maxeon SPR-MAX3-430-R panel under 1 kW/m2 (1,000...
-
Late in December 2 0 0 7 , your public accounting firm accepted an audit engagement at Fine Jewelers, Inc., a corporation that maintains a diamond wholesale store in New York City and retail jewelry...
-
Please assist with thorough explanation for the following questions? Is it possible to be seen as a team player while also performing your required duties as a compliance practitioner? Imagine you're...
-
Given the small amplitude of a tuning fork vibration and the fact that only a portion of it is transferred when the base is placed in contact with another object: why does it sound louder when placed...
-
Jane owns a hairdresser franchise business. As at 1 July 2018, stock on hand of hair related products was valued at $300,000 (at cost). During the year, she purchased an additional $250,000 worth of...
-
U.S. households have become smaller over the years. The following table from the 2010 GSS contains information on the number of people currently aged 18 years or older living in a respondent's...
-
The sales manager and administrative manager of Coffee Oasis have made the following projections to be used in preparing a budgeted income statement. a. Total net sales for 20X3 are projected to be...
-
The following table shows SeaWest Fabrications projected net sales, purchases, and cash payments for expenses for 20X3. Additional information is as follows: a. Actual amounts for the fourth quarter...
-
Match each of the following terms 1 through 4 with the most appropriate description, a through d. In addition, match each of the terms 1 through 4 with an example, e through h. Term 1. Detector 2....
Study smarter with the SolutionInn App