At its peak at the end of 1999, Microsoft had a market cap of $600B. PC sales were booming and most PCs ran on Microsoft software. Revenue was growing 30% per year. The P/E ratio peaked at nearly 80.Ox in 1999. Looking at this chart, what happened in the subsequent 15 years? A. The decline in the P/E ratio canceled out the decline in earnings and this pushed the market cap up. B. Earnings grew and this pushed the market cap up. C. The decline in the P/E ratio more than offset earnings growth and this pushed the market cap down. D. Earnings declined and this pushed the market cap down.
Answers
Answer: C. The decline in the P/E ratio more than offset earnings growth and this pushed the market cap down.
Explanation:
Market Cap = P/E ratio * Earnings
Market cap is dependent on both the P/E ratio and Earnings as shown by the formula and as shown on the graph, the P/E ratio kept on decreasing which means that for the Market Cap to decrease, the downward pull of the P/E ratio must have overshadowed the growth in earnings such that the Market Cap went down instead of up.
For instance, if the earnings were $40 billion and the P/E ratio was 15, Market Cap would be $600 billion.
If earnings increased to $45 billion but P/E ratio decreased to 10, Market Cap would become $450 billion.
Related Questions
The labor relations system in the United States attempts to serve the goals of management, labor unions, and society at large. Management is interested in controlling its labor costs, maintaining its freedom of action, and increasing productivity. These goals may lead them to vigorously oppose union representation for its employees. Labor unions attempt to give their members an independent means of ensuring that their interests at work are protected and to ensure that the terms and conditions of work are as favorable as possible to workers. To do this most effectively, they try to maximize their bargaining effectiveness. Society has an interest in peaceful relations between employers and employees because it makes for a more stable society. Encouraging and regulating the labor-management environment is seen as promoting that goal.
Roll over each item to reveal its description.
Avoid Adversity- Avoiding adversarial relationship with employees
Resolve Disputes- Resolving disputes over resource allocation in the least costly way possible
Build Membership- building membership to increase bargaining power
Maintain Control- Maintaining substantive control over the activities of the organizatio
Institutionalized Conflict- Managing conflict to reduce friction in the industrial setting
Avoiding Strikes- Avoiding the disruption to production processes a strike might cause
Equal Power- making bargaining power as equal as possible between employers and employees
Minimize cost- minimizing the cost of wages of cost and benefits
Halt Production- increasing its ability to halt or disrupt production if necessary to achieve its goals
Avoid Government- avoiding extensive government involvement in the economy
Protect Interest- Ensuring that employees interest are protected through the collective bargaining process
Independent Voice- Providing workers with an independent voice in setting the terms and conditions of their work
Answers
Answer:
Based on the descriptions, the correct columns for these items are:
Society:
Resolve DisputeInstitutionalized ConflictEqual PowerAvoid GovernmentUnions
Build membershipHalt ProductionProtect Interests Independent voiceManagement
Avoid Adversity Maintain ControlAvoiding Strikes Minimize costsYou were hoping for more input from the team. There may be a big production increase if TriState can win a new contract from the client. You have decided to try to open the lines of communication with your employees. How are you going to accomplish this?
Answers
Explanation:
In order to establish a more effective communication, it is necessary that the manager be more assertive, that is, it is ideal that he be able to transmit the information he wants in an honest and direct way, without appearing rude, but with a transparency that inspires confidence to employees, generating greater identification and motivation to achieve the objectives.
In this case, it is ideal that the manager knows how to integrate his team through feedbacks, incentives and demonstration of the benefits that will bring to the whole team, such as when getting a new client contract. It is ideal to know your team and the personality profile of each member, working on the potential of each one so that your skills are beneficial and add greater efficiency and innovation to the group.
Which of the following situations does NOT describe a material participant?
A. Arabella participated in Activity X for 612 hours.
B. Anthony participated in Activity Y for 210 hours, more than any other individual.
C. Abbie participated in Activity A for 20 hours, Activity B for 80 hours and Activity C for 75 hours
D. Raj was a full-time employee at the law firm, Activity Q. from 2008 to 2018.
Answers
Answer:
C. Abbie participated in Activity A for 20 hours, Activity B for 80 hours and Activity C for 75 hours
Explanation:
To prove material participation, one of the following situation should be satisfied:
1. Work 500 hours or more during the year (Part A)
2. Participate in the activity for more than 100 hours during the year, with no one else working more than the individual (Part B)
3. Materially participate in the activity for any five taxable years during the 10 tax years immediately preceding the taxable year (Part D)
Hence, it can be concluded that none of the conditions are satisfied in Part C.
The correct answer is C.
To prove material participation, one of the below situations should be fulfilled:
Work 500 hours or more during the year (Part A) .Participate in the activity for more than 100 hours during the year, with no one else working more than the individual (Part B) Materially participate in the activity for any five taxable years during the 10 tax years immediately preceding the taxable year (Part D)
Hence, it can be concluded that none of the conditions are satisified in Part C.
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Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000.Required:1. What is the company's contribution margin (CM) ratio?2. Estimate the change in the company's net operating income if it were to increase its total sales by $1,000.
Answers
Answer and Explanation:
The computation is shown below:
1) The contribution margin ratio is
Contribution margin ratio = Unit Contribution margin ÷ Unit selling price
where,
Unit selling price is
= Total sales ÷ Number of units
= $200,000 ÷50,000
= $4
And,
Unit variable expense = Total variable expenses ÷ number of units
= $120,000 ÷ 50,000
= $2.4
Now
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $4 - $2.4
= $1.6
So, the contribution margin ratio is
Contribution margin ratio = $1.6 ÷ $4
= 0.4 or 40%
2)
The net operating income is
In the case when the total sales increased by $1,000
Sales $201,000
Less: variable expenses $120,600
Contribution margin $80,400
Less: Fixed costs $65,000
Net operating income $15,400
Prior increase in the sales, the net operating income is
Sales $200,000
Less: variable expenses $120,000
Contribution margin $80,000
Less: $65,000
Net operating income $15,000
So it increase by $400 i.e.
= $15,400 - $15000
= $400
Will any candidate in the Georgia runoff get more than 3 million votes
Answers
Answer:
C
Explanation:
The following amounts represent totals from the first three years of operations. Calculate the balance of Retained Earnings at the end of 2021. 2019 2020 2021 Net Income (loss) $ 1,200 $ (500 ) $ 2,300 Net Cash Flows $ 500 $ 300 $ 2,800 Dividends $ 200 $ 0 $ 200 Issuance of Stock $ 2,000 $ 0 $ 0
Answers
Answer:
$2,600
Explanation:
Statement of Retained earnings
2019 2020 2021
Beginning balance $0 $1,000 $500
Add: Net Income (Loss) $1,200 ($500) $2,300
Less: Dividends $200 $0 $200
Ending balance $1,000 $500 $2,600
Note: The ending balance of each year is c/f as beginning balance for the subsequent year
What is the expected return of a portfolio with 75% in asset A and 25% in Asset B?
State of the economy Prob. of the state of economy Rate of return if states occurs
Boom 0.40 0.15 0.05
Bust 0.60 - 0.05 0.05
Answers
Answer: 3.5%
Explanation:
Expected return if there is a Boom:
= (0.75 * 0.15) + (0.25 * 0.05)
= 0.1250
Expected return if things go Bust:
= (0.75 * -0.05) + (0.25 * 0.05)
= -0.025
Expected return of Portfolio = ∑(Probability of market state * expected return of market state)
= (0.4 * 0.1250) + (0.6 * -0.025)
= 3.5%
Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $32,000 (original cost of $83,000 less accumulated depreciation of $51,000) and $23,000, respectively. Assume Calaveras paid $9,000 in cash and the exchange has commercial substance. (1) At what amount will Calaveras value the pickup trucks
Answers
Answer:
the amount paid for pickup truck is $32,000
Explanation:
The computation of the amount paid for pickup truck is shown below
= Fair value of machinery + cash paid
= $23,000 + $9,000
= $32,000
hence, the amount paid for pickup truck is $32,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Rest of the values would be ignored
A landlord sues a tenant for destruction of property. During the trial, the judge issues instructions to the jury to clarify what facts it must determine to issue a verdict. When in the trial process does this occur?
Answers
Answer: Jury Deliberation.
Explanation:
Jury deliberation is the method by which a jury in a court trial debates the court's findings in private and agrees about which case to agree with.
The presiding juror leads the jurors' deliberations and ballots, and regularly delivers the verdict.
Which statement describes an outcome of fiscal policy?
Answers
Answer:
Consumers have less money for luxuries because they must pay taxes
Explanation:
Which of the following is an ethical violation in the area of finance?
O A. Keeping a financial client's activities confidential even when they
are likely to harm the finances of a close friend or relative
B. Reporting legal violations of your own company to the appropriate
government agency knowing that it could lead to serious problems
for the company
C. Selling the stock you have from the company you work for before
information about the decreased value of the stock is made public
D. Making accurate public reports of bad news that will obviously
harm the stock value of a publicly traded company
Answers
Answer:
The answer is C. Selling the stock you have from the company you work for before information about the decreased value of the stock is made public
Explanation:
Selling the stock you have from the company you work for before information about the decreased value of the stock is made public is an ethical violation.
What is an ethical violation?An ethical violation is a action which goes against the prescribed ethics or acceptable behavior.
In the finance industry, there are ethics that guides businesses.
From the given options, an ethical violation will be selling the stock you have from the company you work for before information about the decreased value of the stock is made public.
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One day, Barry the Barber, Inc., collects $500 for haircuts. Over this day, his equipment depreciates in value by $80. Of the remaining $420, Barry sends $50 to the government in sales taxes, takes home $250 in wages, and retains $120 in his business to add new equipment in the future. From the $250 that Barry takes home, he pays $90 in income taxes.Based on this information, complete the following table by computing Barry’s contribution to the measures of income listed.
Measure of Income Barry's contribution
Gross Domestic Product
Net National Product
National Income
Personal Income
Disposable Personal Income (Dollars)
Answers
Answer:
Gross Domestic Product
= $500
GDP is the final value of goods and services. The haircut is valued at $500 so is GDP.
Net National Product:
= GDP - Depreciation
= 500 - 80
= $420
National Income
= $420
This is the income that a resident of the country earns and $420 is what Barry earned in net income.
Personal Income
= National income - Retained earnings
= 420 - 120 - 50
= $250
Disposable Personal Income (Dollars)
= Personal income - income taxes
= 250 - 90
= $160
The nation of Pineland forbids international trade. In Pineland, you can buy 1 pound of fish for 2 pounds of pineapples. In other countries, you can buy 1 pound of fish for 1.5 pounds of pineapples. These facts indicate that
Answers
Answer: If Pineland were to allow trade, it would import fish.
Explanation:
From the question, we are told that in Pineland, one can buy 1 pound of fish for 2 pounds of pineapples while in other countries, one can buy 1 pound of fish for 1.5 pounds of pineapples.
Based on the above scenario, we can denote that buying of fish from other countries is cheaper but since there's no international trade, this isn't possible. Based on the cheapness, if Pineland were to allow trade, it would import fish.
solve;
i) X+10%of X =22
ii)x+20%of X=rs60
iii)X+25%ofx=rs120
iv)X=rs200+50%of X
v)X=180+10%of x
question from equation and inequality.
Answers
Answer:
[tex]i.\ x = 20[/tex]
[tex]ii.\ x = rs50[/tex]
[tex]iii.\ x = rs96[/tex]
[tex]iv.\ x =rs400[/tex]
[tex]v.[/tex] [tex]x = 200[/tex]
Explanation:
[tex]i.\ x + 10\%\ of\ x = 22[/tex]
[tex]x + 10\%\ of\ x = 22[/tex]
Represent of as *
[tex]x + 10\%\ * x = 22[/tex]
Convert % to decimal
[tex]x + 0.10\ * x = 22[/tex]
[tex]x + 0.10x = 22[/tex]
[tex]1.10x = 22[/tex]
Solve for x
[tex]x = \frac{22}{1.10}[/tex]
[tex]x = 20[/tex]
[tex]ii.\ x+20\%\ of\ x=rs60[/tex]
[tex]x+20\%\ of\ x=rs60[/tex]
Represent of as *
[tex]x+20\%* x=rs60[/tex]
Convert % to decimal
[tex]x+0.20* x=rs60[/tex]
[tex]x+0.20x=rs60[/tex]
[tex]1.20x=rs60[/tex]
Solve for x
[tex]x = \frac{rs60}{1.20}[/tex]
[tex]x = rs50[/tex]
Apply the same steps in (i) & (ii) to the following
[tex]iii.\ x+25\%\ of\ x=rs120[/tex]
[tex]x+25\%\ of\ x=rs120[/tex]
[tex]x+25\%* x=rs120[/tex]
[tex]x+0.25* x=rs120[/tex]
[tex]x+0.25x=rs120[/tex]
[tex]1.25x=rs120[/tex]
[tex]x = \frac{rs120}{1.25}[/tex]
[tex]x = rs96[/tex]
[tex]iv.\ x=rs200 + 50\%\ of\ x[/tex]
[tex]x=rs200 + 50\%\ of\ x[/tex]
[tex]x=rs200 + 50\%* x[/tex]
[tex]x=rs200 + 0.50*x[/tex]
[tex]x=rs200 + 0.50x[/tex]
[tex]x - 0.50x = rs200[/tex]
[tex]0.50x = rs200[/tex]
[tex]x = \frac{rs200}{0.50}[/tex]
[tex]x =rs400[/tex]
[tex]v.\ x=180 + 10\%\ of\ x[/tex]
[tex]x=180 + 10\%\ of\ x[/tex]
[tex]x=180 + 10\%*x[/tex]
[tex]x=180 + 0.10*x[/tex]
[tex]x=180 + 0.10x[/tex]
[tex]x-0.10x=180[/tex]
[tex]0.90x=180[/tex]
[tex]x = \frac{180}{0.9}[/tex]
[tex]x = 200[/tex]
If you own 1,000 shares of common stock of a firm and there are five directors being elected, what is the maximum number of votes you can cast for a particular director under cumulative voting
Answers
Answer:
the maximum number of votes that cast for a specific director under cumulative voting is 5,000
Explanation:
The computation of the maximum number of votes that cast for a specific director under cumulative voting is as follows;
= Number of shares of common stock × number of directors
= 1,000 shares × 5 directors
= 5,000
hence, the maximum number of votes that cast for a specific director under cumulative voting is 5,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
As of 2015, the citizens of Zimbabwe had an average life expectancy of 61 years. A sudden increase in the quality of health care across the country, due to large donations from international non-governmental organizations, has increased the projected life expectancy to 75 years. How would this change in life expectancy affect the market for loanable funds in Zimbabwe
Answers
Answer: Increase in Supply of Loanable funds
Explanation:
With people now living longer in Zimbabwe, they will need a way to sustain their selves in their old age. This will lead to them saving more money in pensions and other financial instruments presented by banks.
These banks will then use this money that these people have saved to create loans for entities in the economy thereby increasing the supply of loanable funds and reducing interest rates.
When there is any change in life expectancy so it Increase in Supply of Loanable funds
Loanable funds:With people now living longer in Zimbabwe, they will required a way to sustain their selves in their old age. This will result to saving more money with respect to pensions and other financial instruments represented by banks. After this, the bank use this money that these people have saved to develop loans for entities in the economy so increasing the supply of loanable funds by decreasing interest rates.
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Juliet spends her day making copies for instructors, filing information for the dean, and recording minutes from meetings. Juliet most likely works in
Teaching.
Training.
Professional Support.
Administrative Support.
Answers
Answer:
I believe Administrative Support.
Explanation:
Juliet spends her day making copies for instructors, filing information for the dean, and recording minutes from meetings. Juliet most likely works in Administrative Support. Thus, option (d) is correct.
What is instructors?
The term instructors refer to the providing of the instruction and the guide the direction of the team. The instructor is the main work to the instruction provided related to the task. An instructor is the good profession but, it was the required the proper knowledge and the experience.
Juliet most likely works in administrative support. The administrative support was the main role to the making copies for instructors, meeting was the recording, filing information, answering phones, handel the customers, staff, scheduling meetings, and they managed the documents and reports.
Therefore, option (d) is correct.
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15. Derive cost of goods sold from data in the statement of cash flows. The section showing cash flow from operations, using the indirect method, for General Electric Company reported an increase in inventories during Year 13 of $1,753 million and no change in accounts payable for inventories. The direct method would show cash payments for inventory, purchased and manufactured, totaling $64.713 million. Compute the cost of goods sold for Year
Answers
Answer:
$62,960
Explanation:
Computation for the cost of goods sold for Year
Using this formula
Cost of goods sold for Year=Cash payments for inventory, purchased and manufactured -Increase in inventories during
Let plug in the formula
Cost of goods sold for Year=$64,713 million-$1,753 million
Cost of goods sold for Year=$62,960
Therefore the cost of goods sold for Year will be $62,960
Jacque Ewing Drilling, Inc. has a beta of 1.3. If the risk-free rate of return is 8 percent and the expected return on the market is 12 percent, what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 0 percent
Answers
Answer:
The firm after tax cost of equity would be 13.2%
Explanation:
The computation of the firm after tax cost of equity capital is shown below
As we know that
Required rate of return = Risk free rate of return + Beta × (market rate of return - risk free rate of return)
= 8% + 1.3 × (12% - 8%)
= 8% + 1.3 × 4%
= 8% + 5.2%
= 13.2%
Since the marginal tax rate is 0%
So, the firm after tax cost of equity would be 13.2%
As a result of the Tax Cuts and Jobs Act, under Federal tax law the tax preparation fees deduction are suspended in tax year 2019. Therefore, under California tax law, a California taxpayer who itemizes his or her deductions and has an adjusted gross income (AGI) of $35,000, and no miscellaneous expenses other than tax preparation fees of $1,000, would be able to take a deduction of what amount on his or her California income tax return for tax year 2019
Answers
Answer:
$300
Explanation:
California tax law continue to allow miscellaneous itemized deductions subject to 2% of Federal AGI
Tax preparation fees $1,000
Less: AGI limit of 2% $700 (35,000*2%)
Deduction on his/her California $300
income tax return
What type of listening would be used if Jim was trying to determine his employees' thoughts and opinions on new health-care coverage?
Answers
Answer:
precision listening
Explanation:
Precision listening is a method of listening that focuses on the points that are important to the speaker. It reveals through emotion what the speaker most wants and can bring them satisfaction.
This method is used when one wants to understand another's views on a topic.
This is the best method to use in the given scenario where Jim was trying to determine his employees' thoughts and opinions on new health-care coverage
How would you build a culture of quality in an organization such as arnold palmer hospital?
Answers
Explanation:
An organizational culture must be based on values of integrity, ethics and reliability. Through these values, organizations achieve several benefits that directly impact the internal and external environment.
Integrity can be understood as the company's non-negotiable values, such as compliance with legal and human requirements that protect its employees and customers.
Ethics must be applied to all organizational processes and in all hierarchies, the relationship between boss and employees, as well as with suppliers and customers must be based on ethical values that promote equality, respect and security of the rights of each individual.
And reliability is achieved through good practices in society and well-established values, which demonstrate good corporate governance and socio-environmental development practices.
In a hospital, for example, it is necessary for the organizational culture to be based on excellent service, in addition to effective communication, reliable professionals, quality equipment, problem solving staff, hygiene, etc., which are values that demonstrate the values and commitment of the institution with patient health and public service.
Write 2-3 short paragraphs about the marketing message you will use and why you chose this message. Why does it appeal to your target market
Answers
Explanation:
A marketing message that is highly regarded in today's world, is one that manages to demonstrate business values in the form of procedures, products and services that contain added value in addition to the purely profitable.
As an example that would write a marketing message about a new clothing brand, it would include information that demonstrates that the manufacturing process and raw materials used in making the clothing is sustainable and has a low impact on the environment.
This is a strategy that increases the perception of stakeholders in relation to products, a brand that actually has parameters of sustainability in its processes can demonstrate them through its marketing messages to create value and greater reliability in the brand, being a great differential for consumers.
What would be the maximum cost of a CFL such that the total cost (investment plus operating) would be the same for both CFL and incandescent 60-W bulbs
Answers
Answer:
don't know bro sorry for that
which method is used to resolve disputed facts to determine the amount of an equitable adjustment when the contractor is clearly entitled to an equitable adjustment (clear proof of injury) and sufficient evidence exists for a fair approximation of the amount of the equitable adjustment (damages)
Answers
Answer:
Total cost method.
Explanation:
The total cost method is defined as the method in which the complete end-to-end cost of fixed, variable, and direct costs of manufactured produced goods and services. This method promotes a higher degree of transparency and effectiveness. This is why this method is employed to bring resolution to the disputed facts by assisting in determining the equitable adjustment amount if he is entitled to it as it involves the complete performance cost.
Celia has a son and a daughter in college. They have been students since tax year 2017. Celia’s son’s tuition is $6,600 and her daughter’s tuition is $1,875. Celia’s AGI for tax year 2020 is $79,800. Is Celia eligible to claim the tuition and fees deduction? a. Yes, Celia is eligible to claim the tuition and fees deduction. Her allowable deduction is $3,875.
b. Yes, Celia is eligible to claim the tuition and fees deduction. Her allowable deduction is $4,000.
c. No, Celia is not eligible to claim the tuition and fees deduction because it expired at the end of tax year 2017.
d. No, Celia is not eligible to claim the tuition and fees deduction because her income is too high.
Answers
Answer:
a. Yes, Celia is eligible to claim the tuition and fees deduction. Her allowable deduction is $3,875.
Explanation:
Since Celia's MAGI is less than $80,000 (assuming she is a single filer or head of household), she can claim up to $2,000 per year on each of her children's qualified tuition expenses. In this case, Celia can claim $2,000 from her son's tuition expenses and $1,875 form her daughter's.
A Kred score metric identifies with the ________ goal for social media metrics. Question 4 options: A) brand awareness B) conversion rate
Answers
Incomplete question. The Options;
a. user engagement
b. key performance indicator
c. web site traffic
d. conversion rate
e. brand awareness
Answer:
e. brand awareness
Explanation:
Note, we are looking at the application of Kred score in business promotion using social media. Since brand influencers often use Kred to measure how much Influence they have, it rightly identifies with the goal for social media metrics.
By means of these metrics, For example, a smartphone company can easily track how many people have recently viewed their video ad of its new smartphone model.
Warner Company purchases $50,100 of raw materials on account, and it incurs $61,000 of factory labor costs. Supporting records show that (a) the Assembly Department used $24,100 of the raw materials and $36,000 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs.
Journalize the assignment of overhead to the Assembly and Finishing Departments.
Account Titles and Explanation Debit Credit
Answers
Answer:
Date Account Titles and Explanation Debit Credit
WIP - Assembly department $57,600
WIP - Finishing department $40,000
Manufacturing overhead $97,600
(To assign overheads to assembly and finishing department)
Explanation:
Labor cost assigned to assembly = $36,000
Labor cost assigned to finishing = $61,000 - $36,000 = $25000
Manufacturing cost assigned to assembly = $36,000 *160% = $57600
Manufacturing cost assigned to finishing = $25000 * 160% = $40000
Holding all other things constant, a higher price for ski lift tickets would A. increase the number of skiers. B. increase the price of skis. C. decrease the number of skis sold. D. decrease the demand for other winter recreational activities.
Answers
Answer: C. decrease the number of skis sold.
Explanation:
Following the Law of Demand which states that if the price of a god increases, the quantity demanded for that good and complimentary goods will decrease.
People would only buy Ski lift tickets if they had skis. If people find out that after buying skis, they would have to buy ski lift tickets that are now more expensive, they would decline to buy skis in the first place so as not to incur the additional ski lift charge which is now higher.
Investment X offers to pay you $3,400 per year for nine years,whereas Investment X offers to pay you $5,400 per year five years. Which of these cash flow streams has the higher present value if the discount rate is 6 percent? If the discount rate is 22 percent?
Answers
Answer:
At 6% ; $3400 has higher present value.
At 22% ; $5400 has higher present value
Explanation:
Using the PVA formula:
PVA = C({1 - [1 / (1 + r)^t]} / r )
Where ;
C = cashflow ; r = rate ; t = time
PVA of 3400 for 9 years at 6% = 0.06
PVA = 3400({1 - [1 / (1+ 0.06)^9]} / 0.06)
PVA = 3400([1 -[ 1 / 1.06^9]) / 0.06
PVA = 3400(0.4081015 / 0.06)
PVA = 3400(6.8016922)
PVA = 23125.753
PVA of 5400 for 5 years at 6%
PVA = 5400({1 - [1 / (1+ 0.06)^5]} / 0.06)
PVA = 5400([1 - [ 1 / 1.06^5]) / 0.06
PVA = 5400(0.2527418 / 0.06)
PVA = 5400(4.2123637)
PVA = 22746.764
B.)
PVA of 3400 for 9 years at 22% = 0.22
PVA = 3400({1 - [1 / (1+ 0.22)^9]} / 0.22)
PVA = 3400[1 -[ 1 / 1.22^9]) / 0.22)
PVA = 3400 (0.8329826 / 0.22)
PVA = 3400(3.7862848)
PVA = 12873.368
PVA of 5400 for 5 years at 22% = 0.22
PVA = 5400({1 - [1 / (1+ 0.22)^5]} / 0.22)
PVA = 5400([1 - [ 1 / 1.22^5]) / 0.22
PVA = 5400 (0.6300007 / 0.22)
PVA = 5400 (2.8636397)
PVA = 15463.654