You are offered $1,000 today, $10,000 in 12 years, or $25,000 in 25 years. Assuming that you can earn 11 percent on your money, which offer should you choose?

Answers

Answer 1

Based on the amounts offered and their present values, the best offer is $10,000 for 12 years.

Why the second alternative can be chosen?

The second alternative is chosen, because this is chosen as it gets the higher amount of present value, the following are the calculations:

The present value of Offer 1 is $1,000. The present value of Offer 2 is $2,858 (10,000 / (1 + 11%)²)The present value of Offer 3 is $1,840 (25,000 / (1 + 11%)³)

Therefore, option 2 has the highest present value and so should be picked.

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Related Questions

An analyst evaluating securities has obtained the following information. The real rate of interest is 2.8% and is expected to remain constant for the next 5 years. Inflation is expected to be 2.6% next year, 3.6% the following year, 4.6% the third year, and 5.6% every year thereafter. The maturity risk premium is estimated to be 0.1 × (t – 1)%, where t = number of years to maturity. The liquidity premium on relevant 5-year securities is 0.5% and the default risk premium on relevant 5-year securities is 1%.

a. What is the yield on a 1-year T-bill? Round your answer to one decimal place.

b. What is the yield on a 5-year T-bond? Round your answer to one decimal place.

c. What is the yield on a 5-year corporate bond? Round your answer to one decimal place.

Answers

An analyst evaluating securities has obtained the following information, which is mathematically given as

Y1= 4.30%Y5= 6.50%Y5'= 8%

What are the yield on a 1-year T-bill,  the yield on a 1-year T-bill, and the yield on a 5-year corporate bond?

Generally, the equation for Yield on Corporate Bond is mathematically given as

Y= r* + IP + MRP + DRP + LP

Hence

a) For the yield on a 1-year T-bill

Y1== 2.2% + 2.1%

Y1= 4.30%

b) For  the yield on a 5-year T-bond

Where

IP=  (2.1% + 3.1% + 4.1% + 5.1% + 5.1%)/5 = 3.90%

And

MRP = 0.1*(5-1)

MRP= 0.4%

Y5= 2.2% + 3.90% + 0.4%

Y5= 6.50%

c) For the yield on a 5-year corporate bond

IP = (2.1% + 3.1% + 4.1% + 5.1% + 5.1%)/5

IP= 3.90%

MRP  = 0.4%

DRP = 1%

LP = 0.5%

Therefore

Y5= 2.2% + 3.90% + .4% + 1% + .5%

Y5'= 8%

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Which of the following is not part of the OSHA training requirements for construction workers?

A. Employers must teach employees to recognize and avoid unsafe conditions.
B. Employers must train employees required to handle or use poisons to handle and use them safely.
C. Employers must teach employees required to handle or use flammable liquids how to safely handle and use them.
D. Employers must teach employees how to clock in and clock out for payment purposes.

Answers

Answer:

B.

Explanation:

most construction workers dont handle poisons

WHO APPLIES B2C MARKETING?​

Answers

The everyday consumer as the target market is what ultimately differentiates B2C enterprises from business-to-business (B2B) companies, which, as the name suggests, focus on selling their wares to other companies.

What does it mean to have a negative savings rate?
A) Saving for something that is a want instead of a need
B) Having a fully funded emergency fund
C) Having no savings at all
D) Spending more money than you make and acquiring debt

Answers

Answer:

D). Spending more money than you make and acquiring debt

Based on the Americans with Disabilities Act, organizations may be deemed discriminatory to those with disabilities if they​

Answers

According to the Americans with Disabilities Act organizations may be deemed discriminatory to those with disabilities if they​ are biased with employment.

What are the Americans with Disabilities Act?

ADA for short is an act that protects the rights of persons living with disability in America, especially in Transportation, communication, employment, and access to government services.

The purpose of this act is to make everyone inclusive in all areas of society.

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Over which of the following factors affecting profits does a business have the most control:

Your answer:

Expenses


Economy


Chance


Demand

Answers

The factor that affecting profits to a business that have the most control is the expenses.

How expenses affect profit?

The expenses play the major role to affect the profit of business organizations, as it is clear that if the firm incurred more expenses in various things that are not related to the business, then ultimately the profit level decreases, and vice-versa.

Therefore, option A is correct.

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Being a mason requires a five-year apprenticeship, a program that requires trainees to work for an experienced mason in order to learn the trade.

A. True
B. False

Answers

It is a false statement that to become a mason requires a five-year apprenticeship,

Who is a mason?

These are people that have some skills to carry out some of their responsibilities.

The profession is known as one uses that uses bricks, concrete blocks etc build structures such as walls, walkways, etc

The apprenticeship years for mason varies from people to people, therefore, it is a false statement.

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PLEASE ANSWER FAST
When you choose a career, you’re looking for something that will help you develop as a person and do work that you love.

A. True
B. False

Answers

I believe it’s true and false cuz most of the time u Can’t get into the job that u wanted all the time but you can hope but I mean a job is a job

Which of the following could be identified as a simile? (2 points)
The light shone brightly through the window at dawn.
I ran to my classroom as fast a cheetah on the hunt.
The young boy shivered with fear when the lights went out.
He is one of the greatest and most prolific writers in history.

Answers

Answer:

He is one of the greatest and most prolific writers in history.

Answer
I ran to my classroom as fast as a cheetah on the hunt
Reason: a simile uses “like” or “as” to compare things
This sentence uses “as” to compare his fast running with a cheetah

Requirements:
You are to complete, in good form, a Statement of Cash Flows for DuLang Industries for the Year Ended December 31, 2019, using Excel.

Good form means the statement must use proper headings, titles, and dates. Underlines, dollar signs, and double underlines where appropriate, please.

Use Excel to do the math for you. When you can use either cell references or formulas. Typing in numbers when you are able to use cell references or formulas will result in a loss of points.

In the worksheet, I have added a "Difference Column" which serves as a starting point for your assignment.

Answers

Answer:

i don't know

Explanation:

i need this profile requirement to go away

Okay I yjust io ueeueu uueu uiI iI ii I got a big deal for you and me I don’t know what if you want me too but I don’t know how long it takes me to


Several coworkers of yours at the local swimming pool have been taking snacks from the snack bar without paying. This is an example of:
O property deviance.
O production deviance.
O personal aggression.
O political deviance

Answers

This is an example of property deviance. Thus the correct option is (B).

What is production deviance?

Production deviance is conduct that formally transgresses the established organizational standards on the minimal standard of quantity and quality of work that must be completed in order to perform one's duties.

The coworkers are wasting the resources of the company and as well as polluting the swimming pool by eating snacks. This is an appropriate example of property deviance.

Thus the correct option is (B).

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what is gross income??

Answers

Answer:

the amount of money you make before all the taxes and deductions are made.

Explanation:

whay i said for the answer ^

a. Some entrepreneurs claim that creating a business plan is not necessary for launching a successful business venture. Do you agree? Explain

Answers

Answer:

In my opinion creating a business plan would make your chances of making a successful business higher since you already know what your doing, it can also help with your thought process and help you consider different aspects of your business. Not having a plan also would lead to all your ideas being in your brain which could make it harder to focus. But many entrepreneurs have started businesses without plans and have succeeded but I think its easier to have a plan.

can i apply for a bank account without a utility bill because i have all the requirements needed except a utility bill

Answers

Answer:

You dont need it

You have been asked to study the effects of an employee-wide training program, in a company of 500 employees, designed to reduce the amount of customer complaints. Describe how you would carry out the study, including the variable or variables you would collect, how you would measure those variables, and what would indicate success.

Answers

The effects of an employee-wide training program,  will be done to improve the employee performance via good training programs.

What is the research about?

The research method will be a qualitative research. In the work, we are going to analyze and understand and see the theoretical aspect and models linked to employee development via training and development programs, and the influence on employee performance.

The study  will give a background about good training effectiveness and how it leads to boasting the employee performance as well as others.

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A prospecting plan is best used by who

Answers

sales teams

Explanation:

They use them for outlining the prosses of identifying the prospects or decision-makers who are most likely to become potential customers.

Jed sold 1,000 shares of ABC, a Canada-based corporation stock, and purchased 1,000 shares of XYZ, a U.S. corporation stock – both transactions were done through his broker. It sounds as though Jed bought these shares most likely through a _____.

A. foreign exchange market

B. money market

C. secondary market

D. risk management market

Answers

Answer:

A

Explanation:

The horizontal axis shows the quantity of U.S. dollars being traded in the foreign exchange market each day. The demand curve (D) for U.S. dollars intersects with the supply curve (S) of U.S. dollars at the equilibrium point (E)

Hyundai Motors is considering three sites—A, B, and C—at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimumcost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: ••• 8.18 SITE A B C ANNUALIZED FIXED COST $10,000,000 $20,000,000 $25,000,000 VARIABLE COST PER AUTO PRODUCED $2,500 $2,000 $1,000 The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. a) For what values of volume, V, of production, if any, is site C a recommended site? b) What volume indicates site A is optimal? c) Over what range of volume is site B optimal? Why?​

Answers

The volume of production that illustrates that site C is a recommended site is 10000 automobiles.

How to calculate the production?

The total cost of A will be:

= 2500x + 10000000

The total cost for B will be:

= 2000x + 20000000

The total cost for C will be:

= 1000x + 250000

The volume, V, of production, if site C is a recommended site. The value will be:

2500x + 10000000 = 1000x + 25000000

2500x - 1000x = 25000000 - 10000000

1500x = 15000000

x = 15000000/1500

x = 10000 automobiles

The volume indicates site A is optimal is also 10000 automobiles.

In conclusion, sure B would not be attractive at any volume of production as the costs will be higher than the cost of site A.

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1. Which of the following is true about finding the present value of cash flows?
A. Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return.
B. Finding the present value of cash flows tells you what a cash flow will be worth in future years at a specified rate of return.

2. Which of the following investments that pay will $18,000 in 4 years will have a lower price today?
A. The security that earns an interest rate of 4.00%
B. The security that earns an interest rate of 6.00%.

3. Eric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest rate) of holding the security is 4.00%. Assuming that both investments have equal risk and Eric’s investment time horizon is flexible, which of the following investment options will exhibit the lower price?
A. An investment that matures in four years
B. An investment that matures in five years

4. Which of the following is true about present value calculations?
A. Other things remaining equal, the present value of a future cash flow increases if the discount rate increases.
B. Other things remaining equal, the present value of a future cash flow decreases if the discount rate increases.

Answers

Based on present value calculations, the following are true:

A. Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return.B. The security that earns an interest rate of 6.00%.B. An investment that matures in five years.B. Other things remaining equal, the present value of a future cash flow decreases if the discount rate increases.

What is true of present value calculations?

Present value relies on the interest rate and the number of periods that an investment. The longer the investment period, the lower the present value.

The higher the interest rate, the lower the present value as well, For this reason, the 6% investment will be worth less today and the five year investment will have a lower price today.

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QPD Corporation discovered financial information about its prime competitor which it used to its advantage. QPD did not obtain the information from any illegal source or through any illegal means. As discussed by the authors, which of the following disadvantages of having a corporate form of business is responsible for QPD’s knowledge of the details of its competitor’s financial situation?

Answers

Corporation is the form of business that responsible for QPD’s knowledge of the details of its competitor’s financial situation.

What is cooperate business?

A cooperate business is a business that is owned and manage by group of individuals.

The members also use the product as well as the service.

Coporation gives members access to information which can be divulged to competitors by members.

Therefore, Corporation is the form of business that responsible for QPD’s knowledge of the details of its competitor’s financial situation.

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what is responsible supply

Answers

It’s a voluntary commitment by companies to take into account social and environmental considerations when managing their relationships with suppliers.

how to calculate a trial balance​

Answers

Answer:

Here is the answer

hope it helps u

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( ^_^ ) BTS ARMY GIRL ( 방탄소년단 )

list the 6 areas of internet

Answers

Answer:

1. Communication Services.

2. File Transfer.

3. Web Services.

4. Directory Service.

5. Information Retrieval Services.

6. Automatic Network Address Configuration.

Explanation:

I hope it helps! Have a great day!

bren~


Customers who purchase an item on account usually do so with a

Answers

Customers who purchase an item on account usually do so with a credit or debit card or a financial program.

What is a credit card?

A credit card is a payment card that allows the cardholder to borrow money up to a certain limit in order to make purchases or withdraw cash. The borrower is then required to pay back the borrowed amount, along with interest, at a later date. Credit cards also typically offer rewards or cash back for purchases made with the card.

Therefore, a customer who purchased an item on account usually do so with a credit, or debit card or any other financial program.

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Why do economists pay attention to the balance of trade?

Answers

Economists use the BOT to analyze and measure the relative power of a country's economy. Hence, Economists pay special attention to the Balance of Trade.

Why is a balance of trade vital to the economy?

The Balance of trade plays a significant role in the calculation of the Gross Domestic Product of a country. As a part of GDP calculations, exports are brought and imports are subtracted from the total.

The more the change surplus, the more the GDP of a country.

Therefore, Economists use the BOT to analyze and measure the relative power of a country's economy. Hence, Economists pay special attention to the Balance of Trade.

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Determine the contribution margin per machine hour for each model.
2. How many units of each model should the company produce? How much total
contribution margin does this mix produce per month?
3. Assume the maximum demand for the Standard model is 180 units (not 550 units).
How many units of each model should the company produce? How much total
contribution margin does this mix produce per month?

Answers

Based the selling price per unit and the contribution margin, the contribution margin per machine per hour is $105 for Standard and $42 for Delux.

The total number of units to be produced are 162 units for Standard and 0 units for Deluxe. This will lead to a contribution margin of $17,010.

What is the contribution margin per machine per hour for Edge Company?

The contribution margin per machine per hour for Standard is:

= Contribution margin per unit / Number of machine hours per unit

= 105 / 1

= $105

For Deluxe is:

= 84 / 2

= $42

What is the ideal mix for Edge Company?

Producing Standard gives a higher Contribution Margin so the company should focus on this alone.

Number of units of Standard would be:
= Machine capacity per month / Number of hours required for Standard

= 162 / 1

= 162 units

The contribution margin would be:
= 162 x x Contribution Margin per unit

= 162 x 105

= $17,010

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2
3
4 5
6
7
which of the following is a type of liability?
A revenue stream
A liquid asset
Accounts payable
Accounts receivable
lease select the best answer from the choices provided
DA
OB
O C

Answers

In the given list accounts payable is a current liability. Thus, the correct answer is C.

What is liability?

The legal debts incurred by a firm to third-party stakeholders are referred to as liabilities. Accounts payable, notes payable, and bank debt are examples of these types of liabilities.

Accounts payable is used to  indicate the money owing to suppliers for products or services that were purchased on credit.

Therefore, option C accounts payable is the correct answer.

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Which of the following is most likely missing from your financial plan if you are not prepared for an emergency?
A. financing
b. a budget
C. investments
d. savings
Please select the best answer from the choices provided

Answers

i think it’s financing because that makes the most logical sense

On November 1, 2021, Tim's Toys borrows $30,000,000 at 9% to finance the holiday sales season. The note is for a six-month term and both principal and interest are payable at maturity. What is the balance of interest expense for the loan as of December 31, 2022?

Answers

The  balance of interest expense for the loan as of December 31, 2022 is: $450,000.

Interest expenses

Loan was outstanding months= November 2022 to December 2022

Using this formula

Interest expenses=Amount borrowed×Interest rate×2/12

Let plug in the formula

Interest expenses= $30,000,000×9%×2/12

Interest expenses=$450,000

Therefore the interest expenses is $450,000.

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Supply and Demand Equilibrium A graph titled Supply and Demand equilibrium has quantity on the x-axis and price on the y-axis. Line A has a positive slope and line B has a negative slope. The 2 lines intersect at point C. Match each term with the correct part of the graph. Demand curve Supply curve Equilibrium point

Answers

C is the point in the graph  refers to the equilibrium price. Because the equilibrium demand and supply have produced this point, it is known as the equilibrium price.

What is equilibrium?

Economic equilibrium is the set of economic variables that drives the economy, such as supply and demand. The term "economic equilibrium" can be used to a variety of variables, including interest rates and total consumer expenditure.

C point refers as equilibrium price produced by the demand and supply mention on X and Y axis respectively.

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Answer:

c

Explanation:

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please help me............. Estimate the amount of time she spent at ballet to the nearest hour B. Solve the following inequalities and graph their solution sets. Use red or blue marker and ruler for the graph. 1. 3x-7 5 Solution: An engineer is working to design a bouncy ball that conserves all of its kinetic and potential energy. She drops the ball to the ground from a height of 3 meters. If it really works, how high should the ball bounce Patients with tuberculosis require which type of isolation?. Sarah would like to create a new custom management report for her client. how would she accomplish this? School spirit seems to be a thing of the past. Only about 100 students attended the last pep rally for our sports teams. Attendance at school events in general is down 22 percent from last year. Perhaps worst of all, the number of after-school clubs has dropped from an even dozen to 6 because of lack of student participation.Which strategy does the writer use to elaborate on the main argument? The most fundamental purpose of government is defense, notempire...........Joseph Sobran- A.provide national security-B.maintain social order-C.Oprovide for and control economic systems-D.Oprovide public services What the answer for question 5 ? Also what the answer for question 6!? The simplified ratio of 32/12 is: Describe a situation that can be represented by an equation and a situation that can be represented by an inequality. What features determine how the situation should be represented? Evaluate the expression below when x = 3 54 23-x 2. Which of the following is an inference? A. You believe that a tree has 43 tree-rings by counting them. B. You believe the moon has craters when you look through the telescope. C. You believe the temperature is 75 degrees F by checking the thermometer. D. You believe it rained when you see a mud puddle. Which of the following stores chemical energy?A. the bonds of a moleculeB. the nucleus of an atomC. the density of a substanceD. the temperature of a substance PLEASE HELP ILL MAKE YOU THE BRAINIEST Find the value of x What are other producers besides plants Suppose a high school student is selected at random.Let event A = junior and event B = earbuds. Are events A and B independent Simplify the expression to yield a quadratic trinomial in standard form.6x(x-4)-(3x 2) 3% of a university's freshman class are majoring in Computer Science. If 231 students in the freshman class are Computer Science majors, how many students are in the freshman class? What is x in the figure?