buyer just made a $5,000 purchase that is payable in 50 days. Assuming the buyer’s opportunity cost of funds is 3.65%, calculate the present value cost of the purchase. PVcredit =

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A: Present value refers to the current value of an asset that will be present at some future date which…

Q: What is the value today of $1,200 per year, at a discount rate of 9 percent, if the first payment is…

A: The concept of time value of money will be used here. Value today refers to present value. The cash…

Q: am. 157.

A: To calculate the present value of $3,000,000 received one year from now at a discount rate of 924…

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A: Net present value refers to the difference between the cash inflows and outflows in an organization.…

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A: Meaning Of NPV :-  Net present value (NPV) is the difference between the PV of cash inflows and the…

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A: Internal rate of return is the exact returns that will be received from an investment. it Is…

Q: If you put up 23,000 today in exchange for a 6 percent, 10-year annuity, what will the annual cash…

A: Invested Amount = $ 23000Interest Rate = 6% Compounded AnnuallyPeriod = 10 YearsAnnual Cash Flow = ?

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A: Present value (PV) is the current estimation of a future amount of cash or stream of income given a…

Q: Calculate the annual benefits (A) If G = 200$, n = 5 years and i = 11%.

A: Gradient series can be defined as that series in which payments are increased by a constant amount…

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A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Bill Padley expects to Invest $19,000 for 2 years, after which he wants to receive $22,990.00. What…

A: Present Value = pv = $19,000Time = t = 2 yearsFuture Value = fv = $22,990

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A: MARR = 12% Investment of Small = $1,500 Investment of Medium = $2,000 Investment of Large = $5,000

Q: What is the present value of a 3-year annutiy of $220 if the discount rate is 6%.

A: Annuity (pmt) = $220 Time Period (nper) = 3 years Discount Rate (rate) = 6%   The calculation of the…

Q: the discounted amount is P8500 while the discount rate is 22 ure amount of the money?

A: The discount on the amount is the interest that is earned on the investment and face value is future…

Q: An investment costs sh.150,000 and pays sh. 12,000 in perpetuity. If the interest rate is 9 percent,…

A: The payments flow which continues for indefinite period with equal amount and interval is called…

Q: Calculate the PV of the following payments if the discount rate is 10% $1,000,000.00 $1,100,000.00…

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Q: 50 For how long can you withdraw s- $500/year after dcpositing yo = $5000 at 8%, before you run dry?

A: It can be calculated using following formula in excel =NPER(rate,pmt,pv,[fv],[type]) Rate The…

Q: If you put up $30,000 today in exchange for a 6.50 percent, 15-year annuity, what will the annual…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: Assuming that Alternatives B and C are replaced with identical units at the end of their useful…

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A: Present value = Future value * Discount factor at the given rate of interest for given time

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A: The present value is the value of the sum received at time 0. It is the current value of the sum…

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A: Discounted payback period is the most common capital budgeting technique which aims to ascertain…

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Q: 1. Assume that $1,000 is to be received 30 years from today. Compare the present values obtained…

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Q: You have invested $2,500 in an asset that will yield 8% each year for the next 5 years. How much…

A: Money get back after n years = Investment * [ 1 + Yield rate ]n

Q: a. 11555 p. 8623 C. 7158 1. 10348

A: Present value can be calculated using interest rate and period required.