If a manager has determined that a particular piece of capital is likely to increase the cash flow of a business by $10,000 for the next five years, what is the present value of the capital at an interest rate of 10 percent? (Assume that the cash flow first increases one year from today.)


PV = ($10,000)/(1.1) + ($10,000)/(1.1)2 + ($10,000)/(1.1)3 + ($10,000)/(l.1)4 + ($10,000)/(1.1)5 = $37,907.87

Economics

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A. 550 percent. B. 55 percent. C. 0.55 percent. D. 5.5 percent.

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A movement from an upper point to a lower point on the Phillips curve shows

a. decrease in the inflation and decrease in the unemployment. b. increase in the inflation and decrease in the employment. c. increase in the inflation and increase in the employment. d. decrease in the inflation and increase in the unemployment.

Economics

If domestic saving is less than domestic investment, then a country will have a ________ and positive net capital ________.

A. trade surplus; outflows B. trade deficit; inflows C. trade balance; inflows D. trade deficit; outflows

Economics

Technological change is a key force in shaping today's economy.

Answer the following statement true (T) or false (F)

Economics