Answer:
Present Value = $290.20
Explanation:
The present value of a future payment can be calculated with the following formula:
PV = FV / (1 + i)N
Where i is the annual interest rate or discount rate, and t is the number of years until the payment will be received.
PV = Present Value = ?
FV = Payment = $4,400
i = 8.3% = 0.083
N = 20 - 6 = 14
PV = $4400 / (1 + 0.083)(20 - 6)
PV = $4400 / (1.083 * 14)
PV = $4400 / 15.162
PV = $290.1992
Present Value = $290.20 (Approximated)
The correct answer is royalty. Royalty is considered to be a
payment by which is made by one by which the franchisee or the licensee owns
the asset in particular and that it is for the right of having to do an
outgoing use of the asset.
Options:A) Present value of a single amount
B) Future value of a single amount
C) Simple interest
D) Present value of an annuity
E) Future value of an annuity
Answer:B) Future value of a single amount.
Explanation: Future value of a single amount is an accounting concept used to describe how much a single lump sum of money deposited in a bank account would have grown up to after a given period of time. Future value of a single amount can be obtained by
multiplying the principal(P)*the interest rate(I) * time(t) The interest rate is expressed as a decimal.
The FV = P(1 + rt).
Future value of a single amount is usually used in calculating the total accrued amount of fixed deposits accounts,it is a single period investment.
Answer:
$ 2,043.14
Explanation:
The shelf price for the two items are $924.95 and $12, 695.95
The total price for both will be
=924.95 + 12, 695.95
=$13, 620.9
A 15% discount on both equals to 15/100 x 13,620.9
=0.15 x 13,620.9
=2,043.135
=$ 2,043.14
Answer:
$153,000
Explanation:
The computation of the net present value is shown below:
= Present value of all cash inflows including salvage value after considering the discount factor - initial investment
where,
Present value is
= Four year cash inflows × PVIFA factor for 11.5% for 4 years + (one year cash inflow + salvage value) × discount rate for 11.50% at five year
= $300,000 × 3.0696 + ($300,000 + $100,000) × 0.5803
= $920,880 + $232,120
= $1,153,000
And, the initial investment is $1,000,000
So, the net present value is
= $1,153,000 - $1,000,000
= $153,000
