That is true, if you raise the rate then the present value falls.Of course, the present value will fall assuming the existence of positive cash flows. This annuity present value is divided into four pieces which are: the present value (PV), the periodic cash flow (C), the discount rate (r), and the number of payments, or the life of the annuity, (T).
Answer:
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Answer:
False.
Explanation:
Six Sigma is a quality control standard that was developed by Motorola Inc in 1986. It aims to reduce defects in goods produced.
While production cycle remains constantor faster, the quality of output should be kept below 3.4 defects per million.
Six Sigma is now applied in various fields like customer service to ensure customer retention, and management strategies.
So the statement above is false, defects must be kept below 3.4 per million to comply with Six Sigma standard.
Based on the interest rate given, the deal that was tossed by the quarterback will be $107.36 million.
<h3>What is an interest rate?</h3>
It should be noted that an interest rate simply means the amount that's charged by a lender. It's a percentage of the principal.
In this case, since the interest rate has been given, the kind of deal that was tossed will be:
= (3.5 + 7.6/1.11) + 18.6)1.11² + 25.2/1.11³ + 25.5)/1.11⁴ + 25.6/1.685
= 107.34 million
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Answer:
b. The analysis of real asset investment opportunities.
Explanation:
Capital Budgeting is the Process of appraising various alternatives of investments.
It uses techniques such as the Net Present Value methods, Internal Rate of Return and Payback Period methods to analyze the best alternatives of investments.