Answer:
B. $6,448,519
Explanation:
The computation of the present value of this growing annuity is given below:
PVA = [Cash flow at year 1 ÷ (interest rate - growth rate)] × {1 - [(1 + growth rate) ÷ (1 + interest rate)^number of years}
= [$675,000 ÷ (0.18 - 0.13)] × [1 - (1.13 ÷ 1.18)^15]
= $6,448,519
Hence, the correct option is b.
When making competitive priority decisions the firm <u>"must make trade-off decisions".</u>
Making decisions requires exchanging off one thing against another.
In economics, the term trade-off is regularly communicated as an opportunity cost, which is the most favored conceivable option. A trade-off includes a forfeit that must be made to get a specific item or experience. A man surrenders the chance to purchase 'great B,' since they need to purchase 'great A. For a man setting off to a ball game, their financial trade-off is the cash and time spent at the ballpark, when contrasted with the option of watching the diversion at home and sparing their cash, in addition to the time spent heading to the ball game.
Answer:
Explanation:
Let D be the event that the lost card is a diamond
and D' be the event that the lost card is a non diamond
Therefore,
P(D) = 
= 0.25
P(D') = 
= 0.75
Now,
Event that the cards picked up are both diamonds = A
Thus,
P( A | D) = 
[ As One Diamond Card is lost ]
And,
P(A | D') = 
[ As One Non-Diamond card is lost ]
Therefore,
P(A) = P(D) × P(A | D) + P(D') × P( A | D')
= 0.25 × + 0.75 ×
=
Answer: 12.86 years.
Explanation: Rule of 72 says that to know in how many years the amount can double can be done by using the interest rate. The rule of 72 says that 72 divided by the annual interest rate will give the number of years it will take to double the amount.
Rule of 72:
Rate of interest = 5.60%/4
Number of years to double the investment = 72 ÷ 1.4
Number of years to double the investment = 51.43/4 = 12.86 years
Therefore, it will take 12.86 years for the $1850 to get double to $3700.
