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alekssr [168]
2 years ago
13

Fishermen’s Corp. is considering purchasing a boat. If the boat was purchased, it is expected to receive $20,000 at the end of t

he first year, $40,000 at the end of the second year, and $60,000 at the end of the third year within its business.
What is the boat worth to Fishermen’s Corp today, assume an 8% discount rate.
$120,000$100,440$47,640$98,756
Business
1 answer:
ozzi2 years ago
5 0

Answer:

The boat today is worth 100,440 dollars

Explanation:

We need to solve for the present value of the payment Fishermen's Corp will receive for the boat:

We will apply the formula for lump sum to each \frac{Maturity}{(1 + rate)^{time} } = PV  

cash flow and then add them together

\frac{20,000}{(1 + 0.08)^{1} } = PV  

\frac{40,000}{(1 + 0.08)^{2} } = PV  

\frac{60,000}{(1 + 0.08)^{3} } = PV  

Year Nominal     Present Value

1 20000  18, 518

2 40000 34,293

3 60000 47,630

TOTAL            100,441

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In 2006, consumers held on to a 2007 Chevrolet Monte Carlo at the State Fair of Texas in an endurance competition that tested co
Semmy [17]

Answer:

b. Advertising  promotional activity

Explanation:

Advertising promotional activity -

Promotional activity is employed , in order to publicize about the goods and services produced by a company or firm , is referred to the method of promotional activity .

The promotional activity can be done by various methods , like television , radio , newspaper etc .

Advertising promotional activity , is the most common and one of the cheapest form of promotional activity , which is done with the help of online as well as offline platform , like newspaper , websites , ,magazines etc .

Hence , from the given scenario of the question ,

The correct option is b. Advertising  promotional activity .

4 0
2 years ago
The real risk-free rate of interest is 4%. Inflation is expected to be 2% this year and 4% during each of the next 2 years. Assu
JulijaS [17]

Answer:

<em>For the 2 year treasury securities it was 7%, and for a 3 year treasury securities it was 7.33%</em>

Explanation:

<em>From the example, </em>

<em>The real risk rate of interest is= 4%</em>

<em>The inflation expectation of this year=2%</em>

<em>Inflation expected  for the next 2 years=4%</em>

<em>Maximum risk premium=0</em>

<em>Therefore</em>

Rt= r* + (Inflation/ year)

Rt2= 4 + (2 + 4 / 2) = 7%

<em>Rt3= 4 + (2 + 4 / 3) = 7.33% </em>

4 0
2 years ago
In the current year, Borden Corporation had sales of $2,190,000 and cost of goods sold of $1,295,000. Borden expects returns in
NNADVOKAT [17]

Answer:

The entries are as follows

To record estimated returns on Sales

Debit: Sales Refund Payable Account $131,400

Credit: Accounts Receivables $131,400

To record estimated Cost of Sales returns

Debit: Inventory Returns Estimated Account $77,700

Credit: Inventory on Sales on Returns $77,700

Explanation:

To derive the figure for Sales Refund payable for the year

6% of $2,190,000

= \frac{6}{100} * 2,190,000 = $131,400

To derive the figure for Inventory cost on Sales Refund payable for the year

6% of $1,295,000

= \frac{6}{100} * 1,295,000 = $77,700

3 0
2 years ago
The overall goal of monitoring, audits, and inspection activities is to:
Harrizon [31]

Answer;

Ensure the protection of human research subjects and data integrity.

The overall goal of monitoring, audits and inspection activities is to ensure the protection of human research subjects and data integrity.

Explanation;

-Monitoring is the act of overseeing the progress of a clinical trial, and of ensuring that it is conducted, recorded, and reported in accordance with the protocol, SOPs, GCP and applicable regulatory compliance.

-Inspection is a review conducted by a regulatory authority to assure human subject protections and regulatory complication and to verify the data.

4 0
2 years ago
A bond has a current yield of 9% and a yield to maturity of 10%. Is the bond selling above or below par value?
CaHeK987 [17]

Answer:

The current yield = 9%

The yield to maturity = 10%

The price of the bond will be below the par value and called as discount bonds. This is because the bond and yield to maturity holds the inverse relationship. Therefore, the bond will be issued at discount, below the par value because yield to maturity is greater than current yield.

7 0
2 years ago
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