You are paid to teach classes for the university and wonder how much money the university makes from your graduate-level classes
Based on historical data, you determine that your summer classes for the next seven years will generate an average annual revenue of $93,850. If you discount these cash flows at an annual rate of 8.30%, what is the present value of the expected cash flows?
A) $656,950.00
B) $845,133.52
C) $483,644.36
D) $523,786.85
Answer: C
Explanation: C)
PV = PMT × = $93,850 × = $483,644.36.
MODE = END
INPUT 7 8.3 ? -93,850 0
KEY N I/Y PV PMT FV
CPT 483,644.36
You might also like to view...
Which of the following criteria is applicable with respect to determining when a variable interest entity (VIE) must be consolidated into the sponsoring firm's financial statements?
A. A consolidation must occur if the firm is entitled to receive all of the VIE's residual returns. B. A consolidation must occur if the firm has a controlling financial interest and is the VIE's primary beneficiary. C. A consolidation must occur if the sponsoring firm owns more than 50% of the VIE's equity. D. A consolidation must occur regardless of the risk of loss exposure.
The best way to ensure a clear understanding when forming a partnership is to put everything in writing
Indicate whether the statement is true or false
A company can increase the perceived value of its product by increasing the perceived benefits, increasing the perceived costs, or a combination of the two
Indicate whether the statement is true or false
What are the three major reasons for performing performance appraisals?
What will be an ideal response?