subject
Business, 21.09.2020 01:01 401666

Tom is comparing two investments. Investment A pays an annual $10000 stream of cash flows that last for 25 years. Each year the investment pays out at the beginning of the year. Investment B pays a similar stream of cash flows, however, the payments are made at the end of the year. Also, this investment does not make a payment in year 17. Both investments pay a 4.25% rate of return. What is the difference in present value between the two investments

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 20:40
Balances for each of the following accounts appear in an adjusted trial balance. identify each as an asset, liability, revenue, or expense. 1. accounts receivable 2. equipment 3. fees earned 4. insurance expense 5. prepaid advertising 6. prepaid rent 7. rent revenue 8. salary expense 9. salary payable 10. supplies 11. supplies expense 12. unearned rent
Answers: 3
question
Business, 21.06.2019 21:00
Following is a list of various costs incurred in producing replacement automobile parts. with respect to the production and sale of these auto parts, classify each cost as either variable costs, fixed costs, or mixed costs. 1. oil used in manufacturing equipment 2. plastic 3. property taxes, $165,000 per year on factory building and equipment 4. salary of plant manager 5. cost of labor for hourly workers 6. packaging 7. factory cleaning costs, $6,000 per month 8. metal 9. rent on warehouse, $10,000 per month plus $25 per square foot of storage used 10. property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000 11. straight-line depreciation on the production equipment 12. hourly wages of machine operators 13. electricity costs, $0.20 per kilowatt-hour 14. computer chip (purchased from a vendor) 15. pension cost, $1.00 per employee hour on the job
Answers: 3
question
Business, 22.06.2019 05:20
Social computing forces companies to deal with customers as opposed to
Answers: 2
question
Business, 22.06.2019 10:30
Perez, inc., applies the equity method for its 25 percent investment in senior, inc. during 2018, perez sold goods with a 40 percent gross profit to senior, which sold all of these goods in 2018. how should perez report the effect of the intra-entity sale on its 2018 income statement?
Answers: 2
You know the right answer?
Tom is comparing two investments. Investment A pays an annual $10000 stream of cash flows that last...
Questions
question
Mathematics, 25.06.2019 10:30
question
Mathematics, 25.06.2019 10:30
question
Health, 25.06.2019 10:30