Answer:
$129.35
Explanation:
Here is the full question :
What is the present value of an annuity of $27 received at the beginning of each year for the next six years? The first payment will be received today, and the discount rate is 10%
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 0 to 5 = $27
I = 10%
PV = $129.35
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
$1.7
Explanation:
From the question above Kirova company recorder the following information
Number of issued common shares is 990,000
Net income is $1,436,500
Number of authorized common share is 1,000,000
Weighted average income of outstanding common shares is 845,000
Number of treasury shares is 145,000
The formular to calculate the earning per share is
= Net income/Outstanding shares
Net income= $1,436,500
Outstanding shares= number of issued common shares- number of treasury shares
= 990,000-145,000
= 845,000
Therefore, the earnings per share can be calculated as follows
= 1,436,500/845,000
= $1.7
Hence Kirova's earning per share is $1.7
Answer:income elasticity of demand for Americano coffees = 0.55
Explanation:
Income Elasticitity of demand = percentage change in quantity demanded / Percentage change in income
which can easily be calculated using
Income Elasticitity of demand =(New quantity demanded - old quantity demanded/ old quantity)/(New Income - Old income /old income.
new income = $28
old income=$22
new quantity= 3450
old quantity=3000
Bringing down our formulae
Income Elasticitity of demand =(New quantitry demanded - old quantity demanded/ old quantity)/(New Income - Old income /old income.
= {(3450-3000) /3000} /{(28-22)/22} =(450/3000) /(6/22) = 0.15/0.2727=0.55
income elasticity of demand for Americano coffees = 0.55
Here , we can see that we have a positive income elasticity of demand therefore Americano coffees is a normal good as an increase in income will lead to a rise in demand. Also, the income elasticity of demand for this commodity is less than 1, therefore it is also a necessity good.
<span>Yes. By investing $180,000 and having a revenues of $198,000, the company would earn $18,000 (before tax) from this project investment. Assuming that the $180,000 investment already factored in time/labor and the projected $190,000 revenues is very likely to occur.</span>
Answer:
annual rate of interest = 9.01 %
Explanation:
given data
future value = $345,000
present value = $73,000
time period = 18 years
to find out
annual rate of interest
solution
we get here annual rate of interest that is express as
annual rate of interest = 
- 1 ..................................1
put here value and we get annual rate of interest that is
annual rate of interest = 
- 1
annual rate of interest = 9.01 %
