Answer:
The value of the settlement today = $231,897.79
Explanation:
The value of the settlement today is the sum of the present value (PV) of cash inflows discounted at the discount rate of 5.7 %.
Year PV
1 35,000 × 1.057^(-1) = 33112.58
2 39,000× 1.057^(-2) = 34907.16
3. 80,000× 1.057^(-3) = 67743.09
4 120,000 × 1.057^(-4) =96134.94
The Pv of the total cash in flow =33,112.58 + 34,907.17 + 67,743.09 + 96,134.95 = 231,897.79
The value of the settlement today = $231,897.79
Answer:
The correct answer is D. Assign appropriate, but differing, discount rates to each project and then select the projects with the highest net present values.
Explanation:
The discount rate is the cost of capital that is applied to determine the current value of a future payment.
The discount rate is used to "discount" future money. It is widely used when evaluating investment projects. It tells us how much money is worth now from a future date.
The discount rate is the inverse of the interest rate, which serves to increase the value (or add interest) in the present money. The discount rate, on the other hand, detracts from the future money when it is transferred to the present, except if the discount rate is negative, in case it will mean that the future money is worth more than the current one. The interest rate is used to obtain the increase to an original amount, while the discount rate is subtracted from an expected amount to obtain an amount in the present.
Except in exceptional cases, the discount rate is positive because before the promise of receiving money in the future we have the uncertainty of whether we will receive it or not, since there may be a problem that prevents us from receiving that money. Therefore, the farther the money we are going to receive, the less it will be worth now.
The standard deviation of sample equals: 11
Explanation:
Given:
variance of sample (
) = 121
no, of observations made = 441
standard deviation = ?
By using the formula:
Standard deviation (S) = 
= 
= 
= 11
Hence the standard deviation is equal to 11.
Answer:
$2,166.60
Explanation:
Divide the salary by 12 months that are in a year, then divide my 2 because bi-weekly is every 2 weeks.
