Answer:
d. $2,591.85
Explanation:
To solve we can use the present value formula defined by
where PV is present value, FV is future value, t is time and r is the interest rate , we can replace the values given in the question. Where 4000 is the future value, the time is t=6 years, and the interest rate is r=0.075, so we get
Answer:
The correct answer is letter "A": countries with high purchasing power today may not continue to show the same growth in the future.
Explanation:
Even if during the past decade the world's major economies have been the same -<em>The U.S., Japan, China, Russia, and Germany</em>- it does not necessarily mean the scenario will not change for the next one hundred years. Some other countries like Saudi Arabia, Switzerland, Belize, Luxembourg, and Australia have started to show signs of increasing development that could turn the worldwide economy into a new direction. The last five (5) countries are reported as being the top nations with the highest purchasing power for 2018.
Answer:
The answer will be A
Explanation:
As the social security contributions and benefits remain the same in proportion, personal and national income will remain the same.
As disposable income is defined as personal income-personal taxes, and the personal income taxes fall by 500 million (included in the contibutions), this would mean that the disposable income increases.
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Answer:
Explanation:
Giving the following information:
The firm must pay $6 million now and $4 million in one year. Two years from now the project is expected to pay back $5 million, and three years from now it is expected to pay back another $10 million.
Io= -6,000,000
1= 4,000,000
2= 5,000,000
3= 10,000,000
i=0.25
We need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
NPV= 5,520,000
The firm should do the project when the net present value is positive.
