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1 year ago

Explain the concept of the time value of money.

1 answer:

7 0

Time value of money (TVM) is the concept that an amount of money today is worth more than the same amount of money in the future because of the potential for earnings. This is a basic principle of finance. Money in hand has more value than the same money paid in the future.

Time value of money. Simply put, the value of a given amount of money today is worth more than it will be worth tomorrow. This is not due to temporal uncertainty, it is simply due to timing. The difference between the value of money today and tomorrow is called the time value of money.

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The Acme Widget Company has found that if widgets are priced at s 389, then 1000 will be sold. They have also found that for eve

kvv77 [185]

Answer:

See the explanation below.

Explanation:

a. The number of widgets that will be sold

Let y represent the number of widgets that will be sold, and and we already have x as price of widget, we therefore have:

y - 1,000 = (-600/10) * (x - 389)

y - 1,000 = -60 * (x - 389)

y = 1,000 - [60 * (x - 389) ]

y = 1,000 - 60x + 23,340

y = 24,340 - 60x

b. The revenue generated by the sale of widgets

Let R represent Revenue, therefore we have:

R = xy

R = x(24,340 - 60x)

R = 24,340x - 60x²

c. The cost of producing just enough widgets to meet demand

Let C represent total cost, we therefore have:

C = 8,000 + 97.25y

C = 8,000 + 97.25(24,340 - 60x)

C = 8,000 + 2,367,065 - 5,835x

C = 2,375,065 - 5,835x

d. The proft from selling widgets

Let P represent profit, we therefore have:

P = R - C

P = 24,340x - 60x² - (2,375,065 - 5,835x)

P = 24,340x - 60x² - 2,375,065 + 5,835x

P = - 60x² + 30,175x - 2,375,065

e. Find the price that will maximize profits from the sale of widgets

Profit is optimum when dP/dx = 0

Therefore, we have

0 = - 120x + 30,175

120x = 30,175

x = 30,175/120 = $251.46

4 0

3 years ago

Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $26

vova2212 [387]

Answer:

dang bro

Explanation:

5 0

3 years ago

There are 5 applicants for a job, all of whom have different qualifications. the employer is in a hurry, and does not interview

Alenkinab [10]

To choose the two best, we have a target of two candidates, A & B
The first one chosen is either A or B, with a propability of 2/5.
The second one is the only interested candidate out of 4, so 1/4.
So probability of choosing the best two is 2/5*1/4=1/10.

Alternatively, use the combination formula,
P(AB in any order) = 5!/(2!3!)=120/(2*6)=1/10
or in general,
n choose r = nCr = n!/(r!(n-r)!)

5 0

3 years ago

The senior management at Life Inc., a pioneer in the health care domain, came up with a blueprint to address the current issues

yuradex [85]

Answer:

The answer is: D) Sustainability

Explanation:

Organizational sustainability is the survival of an organization, which not only depends on financial sustainability but also on complex and dynamic dimensions like workforce growth, delivering value to customers, etc.

It is one of the most important results in applying the Baldrige Model for Business Excellence, which is a system launched by the US government.

5 0

2 years ago

What kinds of unemployment is Naomi experiencing if she has a degree in a field that is experiencing a great deal of growth at t

saveliy_v [14]

Answer:

Naomi experiences Frictional Unemployment due her movement to a new city.

Explanation:

Although Naomi has a degree in a field that is experiencing a great deal of growth, her movement causes her to remain unemployed, not because she has no skill but because of the difference in the job and worker demand and supply between these two places, that is characteristic of frictional unemployment. Frictional unemployment is a type of unemployment that is based on the unemployed person's circumstances. It can be as a result of the person trying to find a better job or as a result of the person moving from an old place to a new place. This type of unemployment exists because jobs and workers have their differences, creating a type of mismatch between the supply and demand of jobs and workers.

4 0

3 years ago