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
Misha Larkins [42]
2 years ago
8

Terry is calculating the present value of a bonus he will receive next year. The process he is using is called:

Business
1 answer:
MArishka [77]2 years ago
3 0

The process used by Terry is known as Discounting.

<h3><u>What is Discounting?</u></h3>
  • A value obtained in the future is converted to an equivalent value received right away through the process of discounting.
  • Discounting takes into account the relative value of a dollar received now against one received in 50 years, for instance.
  • By converting future dollars into current dollars, the discounting process allows for the conversion of units of value over a range of time periods.
  • Decision-makers utilize discounting to fully comprehend the costs and benefits of policies that have long-term effects.

Discounting is a method for calculating the gap between current and future values.

Know more about Discounting with the help of the given link:

brainly.com/question/14954197

#SPJ4

You might be interested in
Laura is a gourmet chef who runs a small catering business in a competitive industry. laura specializes in making wedding cakes.
quester [9]
<span>Laura should both reduce her variable costs and increase her total revenue. If she charged 10% more ($275 instead of $250) and reduced her variable costs by 10% ($162 instead of $180), she would nearly double her profits. She would profit $93 per cake compared to her current $50.</span>
8 0
2 years ago
Knowledge Check 01 Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 p
Flauer [41]

Answer:

C. 25.5%

Explanation:

Net operating cashflow = (250,000 - 100,000) = 150,000; This is a recurring cashflow; the PMT

Cost of equipment; the PV = 400,000

Next, calculate the rate of return  using Net operating cashflow per year and the equipment cost. You can do this with a financial calculator;

N =5

PMT = 150,000

FV = 0

PV = -400,000

then CPT I/Y = 25.41%

Therefore the return is closest to 25.5%

8 0
3 years ago
What happens when you do not make a decision?
Leona [35]
You never decide bewteen whatever the 2 things were
8 0
3 years ago
Read 2 more answers
If "consumers were to decrease their saving for retirement and businesses" were to decrease borrowing for new plants and machine
emmasim [6.3K]

Answer: The supply of the loan able funds would decrease and so would it demand. It will also decrease.

<u>Explanation:</u>

With the decrease in the saving for the retirement purposes, the demand of the consumers would decrease for loan able funds. If the businesses also decrease the savings for new plant and machinery, it would decrease their demand for loan able funds.

Because of the decrease in the demand, the supply of the loan able funds will also decrease. But the effect of this on the real interest rates can not be said to be in a certain manner. It is uncertain.

7 0
2 years ago
First Among Best Solar Inc. announces thatthey will take back free of cost, all of their solar panels that are no longer useful.
kolezko [41]

Answer:

Total Cost of ownership

Post ownership cost

Explanation:

Total cost of Ownership is the the sum of all the amount spent on an item,which includes the cost of purchase,servicing,repair, disposal etc. It is a management tool adopted by marketers and financial analyst to help determine the total costs associated with an item.

Post ownership cost is the total amount involved in disposal of an item,it also include the salvage costs of the item and more recently some other cost like environment costs, liability cost etc.

When the company takes back the panel it will reduce both of Total cost of ownership and Post ownership cost.

7 0
2 years ago
Other questions:
  • Choose all that apply.
    10·1 answer
  • For america, the ________ was a great failure of foreign intelligence, a great tactical military success, and a great political
    14·1 answer
  • Suppose that there are 1 million federal workers at the lowest level of the federal bureaucracy and that above them there are mu
    11·1 answer
  • Account classifications include assets, liabilities, stockholders’ equity, dividends, revenues, and expenses. Required: For each
    8·1 answer
  • The budget director of Heather’s Florist has prepared the following sales budget. The company had $290,000 in accounts receiva
    12·2 answers
  • Let mp = marginal product, p = output price, and w = wage, then the equation that represents a situation where a competitive fir
    12·1 answer
  • Why would you write an inquiry to a company? (1 point)
    12·1 answer
  • 1. Exhibit 1.1; USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
    13·1 answer
  • Suppose a consumer has an income of $16, the price of a is $2, and the price of b is $1. which combination is on the consumer's
    6·1 answer
  • The entry to record the sale of services for cash includes a ______.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!