Linda is being offered an investment that will grow to 80,000 in 10 years at an interest

Fantastic news! We've Found the answer you've been seeking!

Question:

Linda is being offered an investment that will grow to 80,000 in 10 years at an interest rate of 12%p.a to be paid quarterly. She will be required to invest $25,000.

(i) How much is the investment worth today?

(ii) should the investment be accepted? (Justify)

Related Book For answer-question

Advanced Accounting

ISBN: 978-1118037911

1st Canadian Edition

Authors: Gail Fayerman

See More Books

Posted Date: Dec 12, 2023 05:51 AM

See More Questions

Calculate all of the problems in the document below in an Excel spreadsheet or on a financial calculator. Please show your work in order to get credit. For each problem, state the inputs given, what...
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
The Lexington Property Development Company has a $10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is a. 9%? b. 12% compounded monthly?...
Staircase Equipment Company uses a job order cost system. The following data summarize the operations related to production for April 2014, the first month of operations: Materials purchased on...
A 3-in-diameter solid steel shaft, used as a torque transmitter, is replaced with a 3-in hollow shaft having a -in wall thickness. If both materials have the same strength, what is the percentage...
Figure 8 shows a supply curve for a commodity. It gives the relationship between the selling price of the commodity and the quantity that producers will manufacture. At a higher selling price, a...
A young girl and her mother are swinging on a swing set. Who, if either, has the longer period of oscillation? Explain.
In performing a test of controls for sales order approvals, the CPAs stipulate a tolerable deviation rate of 8 percent with a risk of assessing control risk too low of 5 percent. They anticipate a...
The given code is the example of using shift and rotate instructions. Build the Program, and fill in the blanks. TITLE Practice08-2 INCLUDE Irvine32. inc .data. .code main Procedure main PROC Shift...
You are trying to prepare nancial statements for Bartlett Pickle Company, but seem to be missing its balance sheet. You have Bartletts income statement, which shows sales last year were $310 million...
What is the COA for UNCG? Identify both the university and the COA. Using the sample financial aid award letter provided , how much aid would you need to accept? Would this include any loans that...
A random sample of 60 business students required an average of 50.7 minutes to complete a statistics exam. Assume that the population standard deviation to complete the exam is 10.4 minutes....
1.What constant payment for the next 10 years (starting 1 year from now, 10 payments) would be equivalent to receiving $350 every other year starting 10 years from now. Assume the annual cost of...
You want to make money as market maker for used iPhone 14, which currently worth around $800. After testing the water, you discover the following patterns. If you set the bid-ask spread to $100 (e.g....
Determine the overall current in the circuit. (Assume 2 sig figs for the values below.) +1.5V 300 150 450
Gio's Restaurants is considering a project with the following expected cash flows: Year 0 1 2 Project Cash Flow (millions) $(240) 92 72 3 92 4 90 (Click on the icon in order to copy its contents into...
If the magnetic bearing of line BC in May 2005 was 21.80, and the magnetic declination at that time was 2.5o E, varying at 0.5o per year westwards, then the magnetic bearing of line BC in May 2020,...
Do the three planes x + 2x + x 3 = 4, X X 3 = 1, and x + 3x = 0 have at least one common point of intersection? Explain.
Berke Company purchased equipment from Norway for 140,000 krones (NOK) on December 16, 2013, with payment due on February 14, 2014. On December 16, 2013, Berke also acquired a 60-day forward contract...
Aries Inc. holds a 90% interest in Sharatan Ltd., a corporation based in France. The functional currency of Sharatan (self-sustaining subsidiary) is the euro. Aries's interest in Sharatan was...
Oakridge Ltd. gained control of Ventnor Ltd. by acquiring its share capital on January 1, 2009. The statement of nancial position of Ventnor at that date showed: At January 1, 2009, the recorded...
What accounts for the disparity in NPMO between the statistical 6 and the popular Six Sigma approach?
What is the most common use of stratification?
What purpose is served by flowcharts?

Linda is being offered an investment that will grow to 80,000 in 10 years at an interest

Question:

Expert Answer:

i The present value PV formula is used to calculate the present worth of a future lump sum of money ... View the full answer

Advanced Accounting

Students also viewed these accounting questions