Fishermen’s corp. is considering purchasing a boat. if the boat was purchased, it is expected to receive $20,000 at the end of the first year, $40,000 at the end of the second year, and $60,000 at the end of the third year within its business.
what is the boat worth to fishermen’s corp today, assume an 8% discount rate.
$120,000$100,440$47,640$98,756

The boat today is worth 100,440 dollars

Explanation:

We need to solve for the present value of the payment Fishermen's Corp will receive for the boat:

We will apply the formula for lump sum to each  

cash flow and then add them together

Year Nominal     Present Value

120000  18, 518

24000034,293

36000047,630

TOTAL            100,441

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; to open a new transaction, the user should type the code/0 along with a new transaction code, when done with that the user should press enter to open the transaction; good luck;