Answered You can buy a ready-made answer or pick a professional tutor to order an original one.
Roxanne invested $560,000 in a new business 7 years ago. The business was expected to bring in $8,000 each month for the next 26 years (in excess of all costs). The annual cost of capital (or interest
Roxanne invested $560,000 in a new business 7 years ago. The business was expected to bring in $8,000 each month for the next 26 years (in excess of all costs). The annual cost of capital (or interest rate) for this type of business was 7% with monthly compounding. What is the value of the business today? (Enter just the number in dollars without the $ sign or a comma and round oΔ decimals to the closest integer, i.e., rounding $30.49 down to $30 and rounding $30.50 up to $31.)
- ANSWER
-
Tutor has posted answer for $10.00. See answer's preview
***** there is ****** compounding ********* ****** **** is (1+r/m)^m-1 ***** m= ** *** ********** effective ****** **** ** (1+008/12)^12-1 * 0083 ******* ******* **** ** ***** ******* *** *********** ** ******* ** ***** * *** ************ ******** * ********* present ***** of **** ******* ** A{(1-(1/1+r)^n)/r} ***** r * 06917% n **** *** ******** *** PV as 102197913Therefore ** ** ******** is 102197913-560000 * ********