Given an interest rate of 5.6 percent per year, what is the value at date t = 7 of a perpetual stream of $4,000 payments that begins at date t = 15? What is the perpetuity value

Answers

Answer 1

The perpetuity value is $71,428.57 at date t = 15.

Step 1: Calculate the present value of the perpetuity at t = 15.
PV = PMT / r
Where PV is the present value, PMT is the payment amount ($4,000), and r is the interest rate (0.056).
PV = $4,000 / 0.056
PV = $71,428.57

Step 2: Discount the present value back to t = 7.
\(PV_t7 = PV / (1 + r)^(t - t_0)\)
Where PV_t7 is the present value at t = 7, PV is the present value at t = 15 ($71,428.57), r is the interest rate (0.056), t is the date when the perpetuity starts (15), and t_0 is the date at which we want to find the value (7).
\(PV_t7 = $71,428.57 / (1 + 0.056)^(15 - 7)\)
\(PV_t7 = $71,428.57 / (1 + 0.056)^8\)
\(PV_t7 ≈ $45,411.80\)

So, the value at date t = 7 of a perpetual stream of $4,000 payments that begins at date t = 15 with an interest rate of 5.6 percent per year is approximately $45,411.80. The perpetuity value is $71,428.57 at date t = 15.

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Related Questions

Mega Construction Pvt. Ltd. obtains a $75 million contract to construct a building. It estimates that it will take 4 years to complete the project. The estimated cost of the project is $60 million. Mega Construction incurs costs amounting to $20 million in Year 1, $15 million in Year 2, $13 million in Year 3, and $12 million in Year 4. Assuming that the outcome of the project can be estimated reliably and that Mega follows IFRS, the profit that the company should recognize in Year 1 is closest to:

Answers

Answer:

240000000000 gaffsidieu2d1se61uwieosvcscsjzkzodvscscegsisos9wgcwvoeghjeksbe

Explanation:

fcaiwke cecskepepwxqdqti2o3crvtktoyivt00000000sww3567fsseet6

Which of the following recruitment sources is recommended when a company wants to target minorities?

Answers

Media advertising is recruitment sοurces is recοmmended when a cοmpany wants tο target minοrities.

Optiοn A is cοrrect.

What is advertising media?  

The term "advertising media" encοmpasses all fοrms οf media, including the internet, televisiοn, radiο, magazines, newspapers, and billbοards. By highlighting the advantages οf a prοduct οr service, it can be used tο cοnvince peοple tο buy it.

Advertising is a pοtent tοοl that can assist yοu in acquiring new custοmers, educating them abοut yοur prοducts, and establishing trust with existing οnes. The majοrity οf businesses assist themselves in prοduct οr service prοmοtiοn by emplοying sοme fοrm οf advertising.

Thrοugh visual, verbal, οr written messages, advertising is the prοcess οf infοrming and persuading a large audience tο purchase a prοduct οr service. A paid fοrm οf nοn-persοnal presentatiοn and prοmοtiοn οf ideas, gοοds, οr services is knοwn as advertising.

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Complete Question:

Which of the following recruitment sources is recommended when a company wants to target minorities?

A. media advertising

B. sales promotion

C.  Networking

Type the correct answer in the box. Spell all words correctly.
Samantha is part of a project management team working on the initiation phase of a project. What is her team expected to do in this phase?
In the initiation phase, Samantha's team needs to clarify the project's _____
and justify it.

Answers

Answer:

Explanation:

Initiation phase is the first phase of a project management where  the project is evaluated to know the purposes it has to be done , how it will be done and the resources needed to execute it.

At this stage , Samantha's team has to clarify and justify the project's purposes and feasibility in order to know why it has to be done and also how it will be completed and its purpose achieved.

Coronado Industries uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $385,200 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,870. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $887 instead of a credit balance of $2,870, prepare the adjusting journal entry for bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount (b)

Answers

Answer:

A. Dr Bad debt expense $8,686

Cr Allowance for Doubtful account $8,686

B. Dr Bad debt expense $10,669

Cr Allowance for Doubtful account $10,669

Explanation:

(a) Prepararion of the adjusting journal entry to record bad debt expense for the year.

Dr Bad debt expense $8,686

Cr Allowance for Doubtful account $8,686

[(3%*$385,200)-$2,870]

(Being to record bad debt expense)

B.Preparation of the adjusting journal entry for bad debt expense

Dr Bad debt expense $10,669

Cr Allowance for Doubtful account $10,669

[(3%*$385,200)+$887]

(Being to record bad debt expense)

Question 5 of 20
Which is an advantage of paying off a liability?
OA. The liability remains a liability.
B. The liability starts to lose valu
OC. The liability starts to gain value.
OD. The liability can become an asset.

Answers

Answer:

OD is the answer because a liability can become an asset once paid

An advantage of reimbursing the liability is that it becomes an asset when it is being paid.

Option D is correct.

What is an asset?

An asset is the monetary resource of a company which is acquired so that the company would get the maximum benefits in the near future. It is the secondary part of balance sheet which is further classified into two parts namely, current and non-current assets.

Liability is referring to the obligation of a company regarding which the repayment would be done after a certain period of time. In order to repay the liabilities like short-term and long-term borrowings, the assets which can be easily converted into cash are being considered. For instance, the amount due from debtors is a current liability and when it is paid, then it is considered to be a current asset.

Therefore, the advantage written in option D is correct.

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marco recently sold a line of special tagged collars to the local kennel for their dogs, as well as a line of leashes to a local dog walking company for their dog walkers. in which type of marketing channel does this transaction take place?

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The transaction takes place in a vertical marketing channel.

What is marketing?
The actions a company takes to promote the sale or purchase of a product or service are referred to as marketing. Marketing includes all of the following: selling, delivering products to clients or other businesses, and advertising. Affiliates help a company with some of its marketing. One of the main strategies employed by marketing and advertising experts to pique the interest of significant target markets is advertising. Celebrity endorsements, catchy taglines or slogans, eye-catching packaging as well as graphic designs, as well as general media exposure are all examples of targeted promotions. Marketing as just a discipline encompasses all the actions a company takes to attract customers and maintain relationships with them.

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Why is a U.S. savings bond considered a safe form of saving?

Answers

Explanation:

U.S. savings bonds are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government. ... They are sold at face value, so you'll pay $50 for a $50 bond. The bond is worth its full value upon redemption. The interest is issued electronically to your designated account.

If the ceo of imabigbank is playing prisoners dilemma then, from his perspective , the gains to be had from cooperation are

Answers

If the ceo of imabigbank is playing prisoners dilemma then, from his perspective , the gains to be had from cooperation are larger than the rewards from pursuing self-interest.

What does the oligopoly prisoners' dilemma game theory entail?

The prisoner's dilemma is a particular kind of game that demonstrates why oligopolists find it challenging to sustain cooperation even when it is advantageous to both parties. Each actor's primary strategy in this game is to defect. Self-interest, however, results in a less desirable collective outcome.

What is the prisoners dilemma?

The prisoner's dilemma is a scenario in which the gains from cooperation are larger than the rewards from pursuing self-interest. It applies well to oligopoly. The story behind the prisoner's dilemma goes like this: Two co-conspiratorial criminals are arrested.

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a c corporation description

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It's the most common type of corporation in the U.S. – and with good reason. C corporations (c corps) offer unlimited growth potential through the sale of stocks, which means you can attract some very wealthy investors. Plus, there is no limit to the number of shareholders a c corp can have.

Advantages of a C Corporation
There are many benefits of a c corp. Below are just a few that stand out.

Limited liability. This applies to directors, officers, shareholders, and employees.
Perpetual existence. Even if the owner leaves the company.
Enhanced credibility. Gain respect among suppliers and lenders.
Unlimited growth potential. The sky's the limit thanks to the sale of stock.
No shareholders limit. However, once the company has $10 million in assets and 500 shareholders, it is required to register with the SEC under the Securities Exchange Act of 1934.
Certain tax advantages. Enjoy tax-deductible business expenses.
Disadvantages of a C Corporation
Having unlimited growth comes with a few minor setbacks.

Double taxation. It's inevitable as revenue is taxed at the company level and again as shareholder dividends.
Expensive to start. There are a lot of fees that come with filing the Articles of Incorporation. And corporations pay fees to the state in which they operate.
Regulations and formalities. C corps experience more government oversight than other companies due to complex tax rules and the protection provided to owners from being responsible for debts, lawsuits, and other financial obligations.
No deduction of corporate losses. Unlike an s corporation (s corp), shareholders can't deduct losses on their personal tax returns. How to Form a C Corporation
Choose a legal name and reserve it, if the Secretary of State in your state does that sort of thing (not all do).
Draft and file your Articles of Incorporation with your Secretary of State.
Issue stock certificates to the initial shareholders.
Apply for a business license and other certificates specific to your industry.
File Form SS-4 or apply online at the Internal Revenue Service website to obtain an Employer Identification Number (EIN).
Apply for any other ID numbers required by state and local government agencies. Requirements vary from one jurisdiction to another, but generally your business most likely will be required to pay unemployment, disability, and other payroll taxes – you will need tax ID numbers for those accounts in addition to your EIN.

Should citizens participating in
criminal trials should have some requirements such as someone who
has a degree? Or someone who makes at least $20,000 per year? Why
or why not?

Answers

Citizens participating in criminal trials should not be required to have a degree or make a certain amount of money per year. This is because such requirements would create inequalities in the justice system and violate the principle of equal protection under the law that is enshrined in the US Constitution.

First, requiring citizens to have a degree in order to participate in criminal trials would discriminate against those who cannot afford higher education. This would create an unfair advantage for those who are more affluent and better-educated, and it would prevent many people from serving on juries or as witnesses.

Secondly, requiring citizens to make a certain amount of money per year would also create inequalities. Poorer citizens would be excluded from participating in criminal trials, which would violate their rights to equal protection under the law. Moreover, wealth is not necessarily a measure of a person's ability to serve as a juror or a witness. A person's income level does not necessarily correlate with their intelligence, education, or integrity

.In conclusion,citizens should not be required to have a degree or make a certain amount of money per year in order to participate in criminal trials. Doing so would violate the principle of equal protection under the law, create inequalities, and prevent many people from participating in the justice system.

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3. Why are people who are unemployed but not looking for work not included in
the unemployment figures? (Hint: think of teenagers)
Need help due TODAY

Answers

Answer:

Because they don't keep track on it.

Explanation:

Basically they are just included in it because they don't keep track of it. Hope that helps!

A school wants 2 chaperones for every 25 students on a field trip. There are 100 students going on the field trip. How many chaperones does the school need?

Answers

Answer:

8

Explanation:

100/25=4

4x2=8

The bank pays you _______________ for your money held on deposit. a) investment b) attention c) debit d) interest

Answers

I’m not sure the answer to this, but hear me out, try downloading socratic it’s an app like Brainly but you don’t have to wait for someone to answer your question. It’s an app that has really helped me out and it’s an easy download! I really hope this helped you out!

Why are most economies in the world today considered mixed economies?.

Answers

Answer:

Why are most economies in the world today considered mixed economies? Most economies are considered mixed because most have some portion of the means of production under government control. Most economic systems also have some element of the market or capitalism.

Explanation:

Have a great day!

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Deep falls timber stock sold for $6. 50 a share as of 2015. What was the market-to-book ratio at that time?.

Answers

The market-to-book ratio at that time would be 28.15.

Market ratio refers to a statistical calculation used to analyze and compare different aspects of a market or a particular security within that market. Market ratios can provide insights into various aspects of a market or a security, such as its performance, valuation, risk, liquidity, and efficiency, among others.

Some common market ratios include price-to-earnings ratio (P/E), price-to-book ratio (P/B), debt-to-equity ratio, return on equity (ROE), and dividend yield, among others. These ratios can be useful for investors in making informed investment decisions.

To determine the market-to-book ratio at that time we can use this formula

The Price earnings ratio= $6.50 / ($50,800 / 220,000)

Price earnings ratio= $6.50 / 0.230909091

Price earnings ratio= 28.15

The complete question is shown below.

Deep falls timber stock sold for $6. 50 a share as of 2015. If the company's total asset is $50,800 and the market value of the stock is 220,000. What was the market-to-book ratio at that time?

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With the emergence of smartphones, users no longer have to carry a separate music player, a video game, a laptop, or a magazine to keep themselves entertained when traveling. A smartphone is loaded with a variety of applications to satisfy all the customer needs that different industries or products individually satisfied earlier. As a result, the smartphone industry has been posing a threat to a lot of other unrelated industries. What is this phenomenon best known as

Answers

Answer: Industry Convergence

Explanation: Industry Convergence has been boosted by the increased leverage of science and technology to various industries which has seen many industries break from the traditional single market focus and transition in a more robust cross industry focus whereby industries can incorporate several individual product into its production plan thereby providing more value added product and services. Smartphone companies as described above have integrated several single market products such as radio, music player, gaming, internet connectivity, camera and video recording, flash light(torch) and so on. thereby creating a robust and cross-industry product which adds more value and products able to withstand competition.

Which one of the following statements is correct?

a. Cost can be controlled only by those who are managing the project

b. Cost can be controlled only by those who are managing the project risk

c. Cost can be controlled only by those who are doing the spending

d. Cost can be controlled only by those who are doing the work

Answers

The correct statement is "Cost can be controlled only by those who are doing the work." Option D.

This statement reflects the principle of responsibility assignment in project management, according to which each team member is accountable for their task or activities.

Cost management is a crucial aspect of project management, which requires the involvement of the entire project team, not just the managers.

Therefore, team members who are responsible for carrying out the activities are required to be cautious in their approach to carrying out the assigned task to control the cost and keep it within the allocated budget. It is essential for them to understand the scope of the work and execute it effectively and efficiently.

In conclusion, the statement "Cost can be controlled only by those who are doing the work" highlights the importance of assigning responsibility and accountability to the team members to ensure the cost of the project does not exceed the allocated budget.

Hence, the right answer is option D.

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Write a 1 paragraph summary of how modular homes are built and used for different purposes. Please write in complete sentences and include
pros and cons of this kind of residential design.

Answers

Answer:

Modular homes are built in sections or modules off-site and then transported to the final location for assembly. These homes are often used for residential purposes, such as primary residences, vacation homes, or rental properties. They can also be used for other purposes, including office buildings, schools, and healthcare facilities. One of the main advantages of modular homes is that they can be built quickly and cost-effectively in a factory setting, with less waste and greater efficiency. Additionally, modular homes can be customized to meet the specific needs and preferences of the homeowner. However, there are also some drawbacks to modular homes, including limited design options, potential transportation issues, and potential difficulty in obtaining financing or insurance. Overall, modular homes offer a flexible and affordable option for those looking for a new home or building, but they require careful consideration of the specific needs and challenges associated with this type of residential design.

charlotte can produce pork and beans and can switch between producing them at a constant rate. if it takes charlotte 10 hours to produce a pound of pork and 5 hours to produce a pound of beans, what is charlotte's opportunity cost of pork and what is opportunity cost of beans?

Answers

Pork and beans can be produced in Charlotte. Pork has an opportunity cost of 10 pounds of beans divided by 5 equals 2 pounds of beans. 5 pounds of pork, 10 pounds of pork, or 1/2 pound of pork, is the opportunity cost of beans.

The demand for pork drives the demand for market hogs. Retailers create a wholesale demand plan for pork by subtracting an amount from the anticipated pork demand schedule that will cover their expenditures and generate a profit.

2020 saw the COVID-19 have an impact on the pork market. Neither state farms nor small-scale farmers can increase their output. Pork production did not increase and but decreased for the year by 1.42 million tonnes when compared to 2019. The demand for meat eventually exceeds the supply of pork.

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how old do you have to be to work at lululemon

Answers

Answer:

The minium age requirement to work there is 18

The Florida Department of Highway Safety and Motor Vehicles says the cost of a single _______ arrest can exceed $20,000.

Answers

The cost of a single impaired arrest can exceed $20,000 according to the Florida Department of Highway Safety and Motor Vehicles

The Florida Department of Highway Safety is responsible for ensuring road user abide to the state road laws and regulations.

The state imposes a high sanction for any driver found driving drunk which means he/she is involved in Impaired driving.

Hence, the cost of a single impaired arrest can exceed $20,000 according to the Florida Department of Highway Safety and Motor Vehicles

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in the consumer buying decision process for new products, identify the one incorrect stage in the adoption process consumers experience:

Answers

The incorrect stage in the adoption process of the consumer buying decision process for new products is "Evaluation of Alternatives." The correct stages in the adoption process are as follows:

Awareness: Consumers become aware of the new product through various sources such as advertising, word-of-mouth, or marketing efforts.

Interest: Consumers develop an interest in the product and actively seek out information to learn more about its features, benefits, and potential value.

Evaluation of Alternatives: incorrect stage the new product with other available alternatives, considering factors such as price, quality, features, and perceived value.

Trial: Consumers engage in a trial or initial purchase of the new product to experience it firsthand and evaluate its performance and fit with their needs.

Adoption: Based on the trial experience, consumers decide whether to fully adopt the new product, continuing to use it and potentially becoming loyal customers.

So, all the stages listed above are correct.

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NY Fashions has the following data. If it follows the residual dividend model, how much total dividends, if any, will
it pay out?
Capital budget
$1,400.000
% Debt
65%
Net income (NI)
$735,000
O $247,450
O $301,350
O $245,000
O $225,400
O $186,200

Answers

Total dividends are the total amount of dividends that a firm has distributed to its shareholders during a given time period. As a return on their investment, dividends are a portion of a company's earnings that are given to shareholders.

The Residual Dividend model proposes that once the capital expenditures have been met, the firm should pay out dividends from any residual profits.

The first step in calculating the total dividends that NY Fashions will pay is to calculate the equity financing amount. The Equity financing amount can be calculated using the formula:

Equity Financing = Capital Budget * (1- % Debt)

Equity Financing = $1,400,000 * (1 - 0.65)Equity Financing = $490,000

Now, we can calculate the dividends using the following formula:

Dividends = Net Income - (Equity Financing * Required Return on Equity)

Dividends = $735,000 - ($490,000 * 0.15)

Dividends = $735,000 - $73,500

Dividends = $661,500. Therefore, NY Fashions will pay out $661,500 in total dividends if it follows the residual dividend model. Thus, option A is the correct answer.

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1. The formula for continuously compounded interest is A = Pe^rt, where A is the amount of money in the account, P is the initial investment, r is the interest rate, and t is the time in years. Using the formula, determine, to the nearest dollar, the amount in the account after 8 years if $750 is invested at an annual rate of 3%​

Answers

Answer:

the  amount in the account after 8 years is $954

Explanation:

The computation of the amount in the account after 8 years is shown below"

Given that

The formula for continuously compound interest is

Amount = Principal e^(rate) (time period)

= $750 × e^(0.03)(8)

= $954

Hence, the  amount in the account after 8 years is $954

The same is to be considered by applying the above formula

What type of transactions should be recorded in the Payment, Fee, Withdrawal column
of your check register?

Answers

I don’t know Iam adult but I don’t know

after ideas are screened, the next stage of the new product development process is _____.

Answers

The next stage of the new product development process after screening ideas is concept development and testing. Once the ideas have been screened, the next stage in the new product development process is to develop and test concepts.

During this stage, a concept statement is created that outlines the basic product idea, target market, and benefits of the product. This statement is then used to develop a concept that provides a detailed description of the product and how it will meet customer needs.
After the concept has been developed, it is tested with potential customers to determine its appeal and viability. This can involve surveys, focus groups, or other research methods. Based on the feedback received, the concept may be refined or even abandoned if it is found to be unfeasible.
Overall, the concept development and testing stage is critical for ensuring that the product idea is feasible and meets customer needs before investing significant resources in the product development process.

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Business cycle macroeconomics deals with ___________Natural Real GDP level, while economic growth macroeconomics deals with ________________ Natural Real GDP level.

Answers

Business cycle macroeconomics deals with fluctuations in the short-term level of natural real GDP, which are caused by changes in aggregate demand and supply in the economy.

The business cycle is characterized by alternating periods of expansion and contraction, with peaks and troughs reflecting the high and low points of economic activity. In contrast, economic growth macroeconomics focuses on the long-term trend of natural real GDP level, which is influenced by factors such as technological progress, capital accumulation, and labor productivity.

Economic growth is measured as the percentage change in real GDP over a period of time and is considered a key indicator of a country's economic health and prosperity. While business cycle fluctuations are a normal and unavoidable part of economic activity, sustained economic growth is necessary to improve living standards and reduce poverty in the long run.

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Which of the following represent features of continuing education? Check all of the boxes that apply.

not necessary for those with an advanced degree (MD or PhD)

can include self-study such as reading

usually required to maintain a license

often available from professional organizations

only available from universities

Answers

Answer:

b,c,d

Explanation:

"Continuing education (CE) is an essential part of a health science or technology career and can include all kinds of education, including self-study. CE is usually required to maintain a professional license."

Answer:

b, c, d

Explanation:

edge2021

5. Given the model for the Mary Island economy calculate the equilibrium level of income. (2 Points) C= 100+.7YD G = 700 T = 500 1 = 200 6. Calculate the government spending multiplier and the tax multiplier if the MPC is 0.6. 7. Determine the net impact upon the nation's economy that results from equal increases in government spending and taxes of $10 billion when the MPC is.8.

Answers

The net nation's economy from equal increases in government spending and taxes of $10 billion when the MPC is 0.8 is an increase in income by $10 billion.

C = 100 + 0.7YD

G = 700

T = 500

I = 200

Using the Keynesian expenditure-income model -

Y = C + I + G + (X - M)

= (100 + 0.7YD) + 200 + 700 + (X - M)

AE = (100 + 0.7YD) + 200 + 700

Y = (100 + 0.7YD) + 200 + 700

Y = 100 + 0.7YD + 200 + 700

Y = 1000 + 0.7YD

Y = 1000 + 0.7(Y - 500) [ disposable income = YD = Y - T, YD = Y - 500]

Y = 1000 + 0.7Y - 350

0.3Y = 650

= 2166.67

Calculating the government spending multiplier -

Mg = 1 / (1 - MPC)

= 1 / (1 - 0.6)

= 1 / 0.4

= 2.5

Calculating the tax multiplier -

Mt = -MPC / (1 - MPC)

= -0.6 / (1 - 0.6)

= -0.6 / 0.4

= -1.5

Calculating the net impact on nation's economy -

ΔY = (Mg x ΔG) + (Mt x ΔT)

= (2.5 x 10) + (-1.5 x 10)

= 25 + (-15)

= 10

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Identify the difference between liquidity and marketability.

Answers

Answer:

Marketability describes an attribute of an investment that means it can be sold at any time. Liquidity describes an attribute of an investment that means it can be sold at any time close to the value of the original investment.

Explanation:

Answer:

Marketability: The likelihood that something will sell; market appeal.

The house has high marketability.

Liquidity: (uncountable) The state or property of being liquid.

(economics, countable) An asset's property of being able to be sold without affecting its value; the degree to which it can be easily converted into cash.

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