You have the choice of receiving $100 000 now or $60 000 now and another $60 000

Question:

You have the choice of receiving $100 000 now or $60 000 now and another $60 000 five years from now. In terms of today’s dollar, which choice is better and by how much? Money is worth 6% compounded annually.

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

Step by Step Answer:

Related Book For book-img-for-question

Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

See More Books

Question Posted: Feb 26, 2016 03:47 AM

See More Questions

In negotiating a contract for your business, you have to decide between receiving $50 000 now or $20 000 now and $35 000 three years from now. In terms of todays dollar, which choice is better and by...
If money is worth 6% compounded annually, what amount today is equivalent to $10,000 paid: a. 12 years from now? b. 24 years from now? c. 36 years from now?
1. Joshua Vermier of Sacramento, California, received a raise after his first year on the job to $43,800 from his initial salary of $42,000. What was Joshuas raise stated as a percentage? Inflation...
Data-2-Go manufactures and sells flash drives. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month:...
Use the data described in Exercise 11 to estimate a linear regression model with Math as the response variable and GPA and Gender as the explanatory variables. a. Compute the predicted math score for...
The ultrasound image shown in Figure 30.25 clearly shows the babys skin and some bones. Explain why these show up clearly while softer organs inside its body do not. A 50 100 150 Energy of X-ray...
It is said that "the higher the MARR, the higher the price that a company should be willing to pay for equipment that reduces annual operating expenses." Explain the reasoning behind this statement.
You are the sales manager of a two-year-old electronics firm. At times, the firm has seemed to be on the brink of failure but recently has begun to be profitable. In large part, the profitability is...
(Corporate income tax) The William B. Waugh Corporation is a regional Toyota dealer. The firm sells new and used trucks and is actively involved in the parts business. During the most recent year the...
Hound Havens produces plastic doghouses as part of a continuous process through two departments: Molding and Finishing. Direct materials and conversion are added throughout the month in both...
Find the sum of money that accumulates to $1600 at 5% compounded quarterly in 6 years and 4 months.
Find the proceeds of a non-interest-bearing promissory note for $6000, discounted 54 months before its due date at 6% compounded quarterly.
(a) Find all critical points and all inflection points of the function f(x) = x 4 2ax 2 + b. Assume a and b are positive constants. (b) Find values of the parameters a and b if f has a critical...
You have been approached by your friend Fred, a TRU student, to explore business opportunities in the tourism industry. Adventure guided tours are becoming increasingly popular in British Columbia,...
Presented below are the components in Clearwater Seafood's income statement. Deter- mine the missing amounts. Sales (a) $75,000 (b) $108,000 (c) ? Cost of Goods Sold 2 $70,000 $71,900 Administrative...
Calculate the profit margin and asset turnover ratio. Net sales Cost of sales COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Gross profit...
The intercept coefficient means that children whose parents have average height zero would still have an expected height of 19 inches. Of course, this is not really meaning- ful. On the other hand,...
Consider the following game. Player one flips a coin, and while it is in the air, player two calls out either heads or tails. If the side of the coin that player two called out lands facing upwards,...
Evaluate the given expressions. (-5)(6)(-4) (-2)(3)
If the annual fixed costs are 54,000 dinars, the occupation expense represents 20%, the contribution margin is 25%, and the unit selling price is 40 dinars. Required: Calculate the closing point of...
A Fujifilm digital camera with software is marked up 67% based on cost. The cost of the camera is $167.45. Find the selling price of the camera.
Macy's Department Store marked up a Cuisinart blender 38% based on cost. If the markup was $53.20, find the cost and selling price of each blender.
Lenox sells a serving platter for $359. The markup rate is 110% of the cost. Find the cost and markup for the platter.
A long term promissory notes for $20 000 is signed on April 15, 2021. It is due on October 15, 2024 at j2 = 6%. The maturity value of the note is $24 597.48. The note is sold on April 15, 2022 to a...
PW of Alternative For the following alternatives, answer the questions below. Incremental B/C when B/C Ratio compared with alternative Costs. $ Benefits, $ Disbenefits, $ J K L M J 20 22 4 0.90 C...
The following information is available regarding the labour costs in a factory department for a Week: Payroll hours: Production Training Idle time Total Rate per hour: Basic Overtime premium Indirect...

You have the choice of receiving $100 000 now or $60 000 now and another $60 000

Question:

Step by Step Answer:

FV 60 00000 I Y 6 C Y 1 i 60 006 n 5 PV 60 00000106 5 6...View the full answer

Contemporary Business Mathematics with Canadian Applications

Students also viewed these Finance questions