Answer:
a.
Investment X.
Investment X offers to pay $4,500 per year for 9 years.
Discount rate of 7%
This is therefore an annuity as it is a constant figure.
Present value = 4,500 * Present value Interest factor for 9 years, 7%
= 4,500 * 6.5152
= $29,318.40
Investment Y
Present Value = 6,200 * Present value Interest factor for 5 years, 7%
= 6,200 * 4.1002
= $25,421.24
b. Investment X
Discount rate is 21%.
Use Present Value of Annuity formula as attached table does not have factor for 21%.
![Present Value = Annuity * \frac{1 - (1 + rate)^{-no. of periods} }{rate} \\\\= 4,500 * \frac{1 - (1 + 0.21)^{-9} }{0.21} \\\\= $17,574.45](https://tex.z-dn.net/?f=Present%20Value%20%3D%20Annuity%20%2A%20%5Cfrac%7B1%20-%20%281%20%2B%20rate%29%5E%7B-no.%20of%20periods%7D%20%7D%7Brate%7D%20%5C%5C%5C%5C%3D%204%2C500%20%2A%20%5Cfrac%7B1%20-%20%281%20%2B%200.21%29%5E%7B-9%7D%20%7D%7B0.21%7D%20%5C%5C%5C%5C%3D%20%2417%2C574.45)
= $17,574.45
Investment Y
![Present Value = Annuity * \frac{1 - (1 + rate)^{-no. of periods} }{rate} \\\\= 6,200 * \frac{1 - (1 + 0.21)^{-5} }{0.21} \\\\= $18,141.10](https://tex.z-dn.net/?f=Present%20Value%20%3D%20Annuity%20%2A%20%5Cfrac%7B1%20-%20%281%20%2B%20rate%29%5E%7B-no.%20of%20periods%7D%20%7D%7Brate%7D%20%5C%5C%5C%5C%3D%206%2C200%20%2A%20%5Cfrac%7B1%20-%20%281%20%2B%200.21%29%5E%7B-5%7D%20%7D%7B0.21%7D%20%5C%5C%5C%5C%3D%20%2418%2C141.10)
= $18,141.10
Answer:
I only know b
Explanation:
ok sir then i will buy it
An organization that offer goods and services to customers to earn a profit are known as, for profit organizations. A for profit organization is a organization that has a goal to earn profit from their customers.
Answer:
don't even know what u really saying