Answers
The payment is computed as shown below:
Year 0 cash inflow = Year 1 cash flow / ( 1 + required rate of return )1 + Year 2 cash flow / ( 1 + required rate of return )2 + Year 3 cash flow / ( 1 + required rate of return )3 + Year 4 cash flow / ( 1 + required rate of return )4 + Year 5 cash flow / ( 1 + required rate of return )5 + Year 6 cash flow / ( 1 + required rate of return )6 + Year 7 cash flow / ( 1 + required rate of return )7 + Year 8 cash flow / ( 1 + required rate of return )8
$ 650,000 = $ 100,000 / 1.061 + $ 125,000 / 1.062 + $ 150,000 / 1.063 + $ 175,000 / 1.064 + $ 0 / 1.065 + $ 200,000 / 1.066 + $ 0 / 1.067 + Value of cash flow in year 8 / 1.068
$ 650,000 - $ 611,140.57 = Value of cash flow in year 8 / 1.068
$ 38,859.43 x 1.068 = Value of cash flow in year 8
Value of cash flow in year 8 = $ 61,936 Approximately
Feel free to ask in case of any query relating to this question
.Similar Solved Questions
1 answer
Please explain on how you came to this conclusion and the steps that were taken or...
Please explain on how you came to this conclusion and the steps that were taken or formula's Todrick Company is a merchandiser that reported the following information based on 1,000 units sold Sales s 255,e0e S 17,0ee s 170,0ee s s,see Beginning merchandise inventory Purchases Ending merchandise...
1 answer
Page 2 of 2 4. The Red Queen character in the classic book Alice in Wonderland...
Page 2 of 2 4. The Red Queen character in the classic book Alice in Wonderland stated, "It takes all the running you can do to stay in the same place." The term has been applied to help explain why we see so much sexual reproduction in organisms, even when the environment is fairly stable. E...
1 answer
Starting with the left-most column, populate the boxes from left to right without skipping empty boxes....
Starting with the left-most column, populate the boxes from left to right without skipping empty boxes. Ties should be grouped in the same box. A hollow cylinder, a uniform solid sphere, and a uniform solid cylinder all have the same mass m. The three objects are rolling on a horizontal surface with...
1 answer
A re toorge From production data in the past it has been determined that the particles...
a re toorge From production data in the past it has been determined that the particles in micrometers distribution is characterized by the An important factor in solid misste fuel is the partide size distribution Significant problems occur the d following function xx>1 0 cowhere (a) Verity that t...
1 answer
How do you find the integral of #sin( x^(1/2) ) dx#?
How do you find the integral of #sin( x^(1/2) ) dx#?...
1 answer
6) Balance the following unbalanced oxidation-reduction reaction for acid conditions? [12 points) MnO4(aq) + H2SO3(aq) ->...
6) Balance the following unbalanced oxidation-reduction reaction for acid conditions? [12 points) MnO4(aq) + H2SO3(aq) -> Mr++ (aq) + SO42- (aq)...
1 answer
7. You need to construct a 149 uF capacitor for a science project. You plan to...
7. You need to construct a 149 uF capacitor for a science project. You plan to cut two L x L metal squares and place a rubber spacer between them. The thinnest spacers you have are 0.70 mm thick. What is the value of L that you need? p=-1x 10152...
1 answer
In a galvanic cell, one half-cell consists of a lead strip dipped into a 1.00 M...
In a galvanic cell, one half-cell consists of a lead strip dipped into a 1.00 M solution of Pb(NO). In the second half-cell, solid germanium is in contact with a 1.00 M solution of Ge(NO), Ge is observed to plate out as the galvanic cell operates, and the initial cell voltage is measured to be 0.250...
1 answer
35. At the relative end of synaptic transmission, the vesicles (containing stored neurotransmitter) migrate and fuse...
35. At the relative end of synaptic transmission, the vesicles (containing stored neurotransmitter) migrate and fuse with the pre-synaptic membrane. Which of the processes/steps below causes this vesicle-migration and fusion? a. the calcium current at the axon-terminal b. the graded potential at the...
1 answer
Problem 2. Solve the equations which are either exact or can be changed to the exact...
Problem 2. Solve the equations which are either exact or can be changed to the exact equations a. sint cos edt sin cdr 0 b.y = y(1) = 2...
1 answer
Problem 4 (25 points) - show detailed steps Two identical balls come into a collision with...
Problem 4 (25 points) - show detailed steps Two identical balls come into a collision with a coefficient of restitution e=0.8. Before the impact, va = 7 m/s and vp = 3 m/s. Their directions are as shown. Determine the magnitude of velocity of each ball after the impact. Include the following steps i...
1 answer
How do you find the antiderivative of #e^(2x + 1)# dx?
How do you find the antiderivative of #e^(2x + 1)# dx?...
1 answer
11 Draw and find the equilibrium: The following table shows the quantities of corn supplied and...
11 Draw and find the equilibrium: The following table shows the quantities of corn supplied and demanded at different prices. Price per ton ($) Quantity supplied Quantity demanded 60 600 1200 70 800 1100 80 1000 1000 90 1200 900...
1 answer
Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost...
Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of standard direct labor-hours. The budgeted variable manufacturing overhead is $5.40 per direct labor-hour and the budgeted fixed manufacturing overhead is $2.679,000 per year....
1 answer
What do the variables in parabola equations represent?
What do the variables in parabola equations represent?...
1 answer
Consider the spring-mass-damper system shown. Assume M-1kg. B - 20 N-s/m, K-25 N/m and f(t) =...
Consider the spring-mass-damper system shown. Assume M-1kg. B - 20 N-s/m, K-25 N/m and f(t) = ON (zero-input case). The initial conditions are: x(O) = 1 m, x(0) = 0 m/s Select the correct plot of "x vs. t" for this zero-input case. They M B 0 0 O O o...
1 answer
Transactions for the month of June were:PurchasesSales (units)June 1(balance) 2,200 @$3.20June 21,200 33,700 @3.1063,200 73,400 @3.3092,000...
Transactions for the month of June were:PurchasesSales (units)June 1(balance) 2,200 @$3.20June 21,200 33,700 @3.1063,200 73,400 @3.3092,000 152,600 @3.4010800 221,800 @3.50182,800 25400 Assuming that perpetual inventory records are kept in units only, the cost of goods sold on a LIFO basis is 12. Tr...