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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

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When there are more than 1 project to be chosen from, the project whose payback period is the least should be chosen.

Therefore, the storage facility project should be chosen.

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When making the 4th unit, no marginal income as well as marginal cost becomes nearest. It, therefore, means that, as it generates 4 units, the Monopoly price would have been $12. Whether it is a reasonably open market, the cost should always be equivalent to marginal revenue, meaning $8 would be the price.

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