1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kompoz [17]
2 years ago
12

You are offered Birr 1,000 today, Birr 10,000 in 12 years, or Birr 25,000 in 25 years. Assuming that you can earn 11 percent on

your money, which offer should you choose?
Business
1 answer:
Usimov [2.4K]2 years ago
4 0

Based on the amounts that you are offered and their present values, the offer you should pick is Birr 10,000 in 12 years.

<h3>Which offer should you pick?</h3>

You should pick the offer with the highest present value.

Offer 1 present value:

= Birr 1,000

Offer 2 present value:

= 10,000 / (1 + 11%)²

= Birr 2,858

Offer 3 present value:

= 25,000 / (1 + 11%)³

= Birr 1,840

In conclusion, option 2 has the highest present value and so should be picked.

Find out more on present value calculations at brainly.com/question/27821989.

#SPJ1

You might be interested in
Form 8889, Part 1 is used to report HSA contributions made by _______________. A. Carol B. Carol’s employer C. Carol’s cousin D.
goldenfox [79]
Answer: B Explanation: both fred and carol (as a couple) must e-sign the return form or otherwise it may be tagged a fraudulent

Please give me brainliest
4 0
2 years ago
Diane recently quit smoking and started a support group for former smokers. as a result of these actions, she has improved which
mezya [45]
It improved 7 dimensions of  wellness spiritual, physical, emotional, intellectual, environmental and social.
4 0
3 years ago
​the _____, which appears at the beginning of a report, identifies the report and contains the report title, date, and other nec
scZoUnD [109]
Report header is the answer
8 0
3 years ago
DEP Inc. is interested in forecasting the trends in the real exchange rate of Vietnamese currency, dong, because its supply chai
Advocard [28]

Answer:

b. appreciating vis-à-vis all other currencies.

Explanation:

Since the demand for non tradables will be slow then the supply; its price in Vietnam will decline a decline in domestic prices relative to international prices will raise exports and hence improve the external balance of Vietnamese economy appreciating its exchange rate.

8 0
4 years ago
How can a company economically benefit by producing green products?
Crank

Answer:

the correct answer is C. by earning tax benefits

Explanation:

it is a common practice in many countries to provide tax rebates, reliefs and even special lower tax rates for environmentally friendly green products and environmental friendly production processes. this is a main way a company can benefit by having a green business model.

3 0
3 years ago
Other questions:
  • Southwestern Bank offers to lend you $50,000 at a nominal rate of 6.5%, compounded monthly. The loan (principal plus interest) m
    10·1 answer
  • In a public debate on evolution, ____ refuted the points made against evolution by ____.
    12·1 answer
  • Universal Containers (UC) has a custom, internal-only, mobile billing application for users who are commonly out of the office.
    6·1 answer
  • A ____ is a description of the disasters that may befall an organization, along with information on their probability of occurre
    6·1 answer
  • Melanie is employed full-time as an accountant for a national hardware chain. She recently started a private consulting practice
    10·1 answer
  • Suppose the economy is producing at the natural rate of output. An increase in consumer and business confidence will cause _____
    5·1 answer
  • On July 15, Piper Co. sold $24,000 of merchandise (costing $12,000) for cash. The sales tax rate is 4%. On August 1, Piper sent
    11·1 answer
  • MVJ Corp., a market research firm, borrows $2 million from trimitium bank. while negotiating with the bank, the firm signs a pro
    15·1 answer
  • Following a decrease in price from $1.90 to $1.50, the weekly demand for a magazine increases from 100,000 to 120,000 copies. Th
    7·1 answer
  • If you wanted to withdraw $12,000 from a bank account at the end of each of the next 20 years, approximately how much would you
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!