An Aircraft Company Has Signed a Contract to Sell a Plane

question 55

Short Answer

An aircraft company has signed a contract to sell a plane for $20 million.The firm buying the plane will pay for it in 5 annual payments (at year end)of $4 million.If the firm's cost of capital is 6%,what is the net present value of this payment?

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Definitions:

Norms

Socially accepted rules or standards that dictate the expected behavior within a community or group.

Level Of Participation

The degree or extent to which consumers or members of a community engage with an activity, service, or product.

Updates

Information or data that has been revised or improved to bring it up to date, commonly used in the context of software or news.

Harlem Shake

A popular internet meme and dance craze involving a short video format where one person dances solo before prompting a group dance.