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kherson [118]
2 years ago
6

Flaherty is considering an investment that, if paid for immediately, is expected to return $140,000 five years from now. If Flah

erty demands a 9% return, how much is she willing to pay for this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1)
Business
1 answer:
makkiz [27]2 years ago
7 0

Answer:

PV= $90,990.39

Explanation:

Giving the following information:

Future value= $140,000

Number of periods= 5 years

Rate of return= 9%

<u>To calculate the price to pay today, we need to calculate the present value. We will use the following formula:</u>

PV= FV/(1+i)^n

PV= 140,000 / (1.09^5)

PV= $90,990.39

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Assume that more corn is used to produce ethanol. Simultaneously, more effective control of pests and weeds occurs during farmin
Sophie [7]

The price of corn will increase  will definitely occur in the corn market.

Option A

<u>Explanation: </u>

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2 years ago
Steinberg Corporation and Dietrich Corporation are identical firms except that Dietrich is more levered. Both companies will rem
Lapatulllka [165]

Answer:

a. What is the value today of Steinberg's debt and equity?

  • $2,890,909

b. What is the value today of Dietrich's debt and equity?

  • $2,890,909

c. Steinberg’s CEO recently stated that Steinberg’s value should be higher than Dietrich’s because the company has less debt and therefore less bankruptcy risk. Do you agree or disagree with this statement?

  • A. Disagree: a company's value is determined by by its operating income (EBIT), not by there capital structure (M&M theory).

Explanation:

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economic recession 20% chance, EBIT $1.9 million

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3 0
2 years ago
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Answer:

The Electronics, beverages, fast-food, and automobile industry are some sectors that have witness proliferation of products and the shortening of product life-cycle.

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List two ways the decision making matrix model is used to consider risk
Julli [10]

<em>Answer:</em>

1-Likelihood

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