The best answer choice would be "B". This gives the main idea of what your debate would be about. It is also clear, and not biased or opinionated.
I hope this helps!
~cupcake
Based on the amount it would cost to build the machine and the interest rate as well as the payoff, the following are true:
a. The machine will take a year to build which means the payoff will only start coming in next year.
First find the present value of the perpetuity:
= 70 / 5%
= $1,400
You then need to find the present value of the above in the current period:
= 1,400 / ( 1 + 5%)
= $1,333
NPV is:
= 1,333 - 1,000 cost
= $333
B. If the amount produced increases by 1%, you should use the Gordon Growth Model:
<em>= Next payoff / ( Interest - Growth)</em>
=70/ ( 5% - 1%)
= $1,750
Take this to current year:
= 1,750 / 1.05
= $1,667
NPV will be:
= 1,667 - 1,000
= $667
Find out more about NPV at brainly.com/question/7254007.
You get kind of a credit every time you buy something from the card issuer. that means you borrow money for the purchase you make from the card issuer with the promise to pay them at the end of the month (or whenever your contract tells you to). it's easy to switch credit cards and there are a lot of free contracts out there. better give your credit card number to someone you don't trust than your bank account number. cause in case of a fraud you can just change credit card. changing the bank account is a lot harder than changing credit card (plus the card issuer has the problem of not getting their money. not you)
Answer:
c. Because it is a fixed-rate mortgage, the monthly loan payments (which include both interest and principal payments) are constant
CORRECT The interest will decrease while principal increase leaving a net effect of zero through the life of the loan
Explanation:
a. The outstanding balance declines at a slower rate in the later years of the loan's life
FALSE the principal decreases at a higher rate in the lather years as the interest component decreases.
b. The remaining balance after three years will be $225,000 less one third of the interest paid during the first three years
FALSE to know this we need to know the rate
d. Interest payments on the mortgage will increase steadily over time, but the total amount of each payment will remain constant
FALSE as a portion of the principal is being paid, the interest component decreases over time
e. The proportion of the monthly payment that goes towards repayment of principal will be lower 10 years from now than it will be the first year.
FALSE the porportion to pay the principal increase through time.
Answer:
Case 1 = $420 million
Case 2 = $280 million
Case 3 = $350 million
Explanation:
As per the data given in the question,
Annual value by one distributor = $420 million per year
Annual value by two distributor = $560 million per year
Case 1)
The marginal value of first distributor is more than second
So when negotiating the value, it is = $560 million - $420 million = $140 million
and this value would be distribute between both. so each will get = $140 million / 2 = $70 million
and you would expect to capture $420 million of this deal
Case 2)
As distributors are run by government, so negotiation will be done with both the distributor at same time and margin would be $560 million and you would be grabbed = $560 million ÷ 2 = $280 million
Case 3)
In this case marginal amount of contact = $560 million - $140 million = $420 million
and half of it = $420 million ÷ 2 = $ 210 million, which is the amount to be offered
and you would expect to grab the remaining amount = $560 million - $210 million
= $350 million
