Answer:
We have to discount these payments to find the present value
500,000
500,000/1.1
500,000/1.1^2
500,000/1.1^3
We keep on doing this until we reach 500,000/1.1^19
After that we add all the payments and get the value. A less time consuming way of doing it is using a financial calculator
Pv=?
N=19
FV=0
PMT=500,000
=4,182,460.05 we add 500,000 to this because the first payment was not discounted=4,682,460.05= Present Value.
Explanation:
Answer:
The complete questions is
Molly is celebrating her exciting new career and wants to upgrade her junky old car for a shiny new Jeep
Patriot. She heads to Jeep’s website and sees the following financing deals:
Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight off her total. How much loan does Molly need?
Explanation:
Answer:
The correct answer is option B.
Explanation:
The value of price elasticity of demand will be the same if the quantity of tickets changes from 1 to 8 and 1,000 to 8,000. The price elasticity is calculated on the basis of proportionate change in quantity demanded.
The proportionate change in quantity demanded is the same in both cases. So, the price elasticity of demand will also be the same.
The cost of adding more options. Supply and demand: would the students want to have salad for lunch, or would it go to waste?
Answer:
The firm's receivable turnover is 20 times
Explanation:
The computation is shown below:
Accounts receivable turnover ratio = (Credit sales ÷ average accounts) receivable
where,
Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2
= ($0 + $50,000) ÷ 2
= $25,000
And, the net credit sale is $500,000
Now put these values to the above formula
So, the answer would be equal to
= ($500,000 ÷ $25,000)
= 20 times
And, the average collection period in days = Total number of days in a year ÷ accounts receivable turnover ratio
= 360 days ÷ 20
= 18 days
