Answer:
For the first 2 we calculate the future value:
(A)856
(B)1,122.04
(C) and (D) thre present value will be 800
Explanation:
856
1,122.041358
Answer:
The perpetuity is worth $1486.43 more than the ordinary annuity
Explanation:
A perpetuity that with an annual cash inflow or cash outflow payable for a foreseeable future - for an infinite number of period
The present value of a perpetual annuity is calculated as
PV= A/r
PV = 1000/0.1
PV =&10,000
On the other hand, an annuity with annual cash inflows or cash outflows for certain number of years is called an ordinary annuity.
The present value of an ordinary annuity is determined as follows:
PV = (1 - (1+r)^n)/r × A
= (1-(1+0.1)^(-20))/0.1 × 1000
= 8.5135 × 1000
= 8513.56
Difference in PV = 10,000 - 8513.56
= $1486.43
The perpetuity is worth $ 1,486.43 more than the ordinary annuity
Answer:
<em>Increase in quantity demanded</em>
Explanation:
Demand for a product is the different quantities of that product that consumers are willing and ready to pay for at different prices.
There are many factors that affect the demand for a product; these include change in the price of the product, price of related products, change in consumer income, change in fashion, taste and style.
<u><em>Change in quantity demand</em></u>
Specifically, the law of demand states that there is an inverse relationship between quantity demand and its price. Change in quantity demand is a movement along the demand curve.
<em>A change in the price of a product will produce an opposite change in the quantity that consumers are willing to buy assuming all other factors do not change. This is referred as to as change in quantity demand. This can either be an increase or a decrease depending on the direction of the price movement.</em>
<u><em>Change in demand</em></u>
<em>Change in demand is the shift in the demand curve to either right or left. This can be attributed to any of the factors that affect demand other the price e.g change in income.</em>
<em>Therefore a decrease in the price of laptop computers will lead to an increase in the quantity demanded</em> .
This scenario is an example of attempted "phishing"
Your answer is phishing
Answer:
C.- ↓Holding Cost = ↑Economic Order Quantity
Explanation:
Economic Order Quantity = square root of (2DS/H)
<u>Where:</u>
Demand and setup are in the dividend part, if they increase, the EOQ increase.
Holding cost goes in the divisor, if they increase the EOQ decrease
A- FALSE ↑Holding Cost ≠↑Economic Order Quantity
B- FALSE ↑Demand ≠↑EOQ
C.- Correct ↓Holding Cost = ↑Economic Order Quantity
The divisor is lower, so the value increase.
