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AlexFokin [52]
4 years ago
10

(a) A local bookseller is considering expanding store space to increase his capacity for books.

Business
1 answer:
Ksju [112]4 years ago
8 0

The book seller should invest in the extra space.

<u>Explanation:</u>

As per the given data:

rent for the additional space given is $300 per year, the additional profit that will be pulled by adding on the space = $4000 per year, the current rate of interest given is = 12%

In order to calculate about the decision, the present values needs to be calculated first

The present value of the investment = (- $ 3000 plus $ 4000) by 1.121

The present value of the investment = $ 571.43

The present value of the investment is positve, hence the book seller should invest in the extra space.

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Vas happenin!!

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I would go with scale


Hope this helps

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2 years ago
The dividend growth model can be used to value the stock of firms that pay which type of dividends?I. Constant annual dividendII
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Answer:

II and III only

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4 years ago
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4 years ago
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mezya [45]

Answer:

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Explanation:

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