This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A beach house in Southern California now costs 350,000. Inflation is expected to cause this price to ... (Read 63 times)

Pea0909berry

  • Hero Member
  • *****
  • Posts: 573
on: Jul 10, 2018
A beach house in Southern California now costs 350,000. Inflation is expected to cause this price to increase at 5 percent per year over the next 20 years before Eric and Karinna retire from successful careers in commercial art.
 
  How large an equal annual end-of-year deposit must be made into an account paying an annual rate of interest of 13 percent in order to buy the beach house upon retirement?
  A) 11,472
  B) 4,323
  C) 79,977
  D) 17,350

Question 2

The payback period is generally viewed as an unsophisticated capital budgeting technique, because it does not explicitly consider the time value of money by discounting cash flows to find present value.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jharrington11

  • Sr. Member
  • ****
  • Posts: 365
Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

TRUE


Pea0909berry

  • Member
  • Posts: 573
Reply 2 on: Jul 10, 2018
Wow, this really help

flexer1n1

  • Member
  • Posts: 373
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Platypus House at Lone Pine Koala Sanctuary in Brisbane, Queensland Platypus House at Lone Pine Koala Sanctuary in Brisbane, Queensland
Southern rockhopper penguin Southern rockhopper penguin
Panjin Red Beach Panjin Red Beach
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ... The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ...
Video: First Stage of Labor and Delivery Video

For a complete list of videos, visit our video library