ali business with 780000 is expected to grow at 10% per year compounded annually for the next 4 years. Find (a) the expected future value (b) if funds from sale of the business today would be placed in an account yielding 6% compounded semi annually, what would be the minimum acceptable price for the business at this time

Q: Mike Derr Company expects to earn 12% per year on an Investment that will pay $616,000 six years…

A: Answer :Present value=?=?[1/(1+ rate) ^time]Future value = $616,000Rate = 8%Time = 7  yearsPresent…

Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…

A: To calculate the present value we will use the below formula   Present value = FV/[1+(r/m)]n*m Where…

Q: The profit from the sale of a product is expected to increase at an annual rate of 8%. First-year…

A: We need to use future value formula to calculate equivalent future value after 8 years.FVn = Future…

Q: The ZLC consulting firm just signed an agreement to provide services to another firm.  In doing so,…

A: Here, To Find: Total Present Value of agreement =?

Q: A firm is scheduled to receive payment of $68,000 in 2 years.  What is the present value of this…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Nominal annual interest rates are 7.3%. If a businessperson has an opportunity to invest $40,000…

A: Option 1: If 40,000 invested at 7.3% for 5 years: Future Value = Present Value * ( 1 + Interest…

Q: Assume you have $1600 to invest in a 4 year CD with an APR 2.8% compounded daily. When the CD…

A: Certificate of deposit (CD) A certificate of deposit (CD) is a type of savings account where the…

Q: u are considering the purchase of an investment that pays an annual rate of 6.80%, compounded…

A: Future value required=FV=600000PMT=monthly deposit=3500Interest rate=6.80%Rate=6.8/12=0.5666666667%

Q: A firm is scheduled to receive payment of $32,000 in 2 years.  What is the present value of this…

A: Present value of future cash flow can be calculated as follows: = Future Value/ (1 + rate)^number of…

Q: What is the future value at the end of year 2 of an income stream that starts out at $2400 per month…

A: Monthly Payout = 2400 Decreases by 75 Monthly Compounding Number of compounding periods = 12 Time…

Q: Assume you are offered a $20,000 annual payment, made quarterly (m =4). Payments begin in 10 years…

A: First Annual Payment: $20,000 (paid quarterly, for a total of $5,000 every quarter).Payment Start…

Q: A company is considering an investment expected to yield $70,000 after six years. If this company…

A: Present value: It can be defined as today’s value of the sum of money that will be received by the…

Q: A 60-day $100,000 T-bill was bought for $99,500. What rate of return will be realized if the T-bill…

A: Given: Face  value = $100,000 Present value = $99,500 Days = 60

Q: value of the FRA

A: FRA stands for Forward rate agreement refers to the interest rate decided between two parties that…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.