You are offered an investment that pays $400 in one year, $500 the next year,...

60.1K

Verified Solution

Question

Finance

image

You are offered an investment that pays $400 in one year, $500 the next year, and $200 at the end of the third year. You can earn 11% on very similar investments. What is the most you should pay for this one? O 898 0884 O 927 912 Question 2 0.5 pts You think you will be able to deposit $4,000 at the end of each of next two years in a bank account paying 8% interest. You currently have $6,000 in the account. How much will you have in 3 years? O 16,883 O 16,544 O 17,226 O 17,574 D Question 3 1 pts Consider the following information for the percentage of sales approach: Sales = $3M, NI = $0.4M, Retention ratio = 0.75 Total Asset = $4M Current Liability $0.2M Long-term debt = $1M Equity = $2.8M If sales increase by 30% (and NI, assets, and CL increase at the same rate), calculate the external financing needed

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students