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Anna35 [415]
3 years ago
9

Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpetuities, answer t

he following questions.
1. Which of the following are characteristics of a perpetuity?
Check all that apply.
A. A perpetuity is a stream of unequal cash flows.
B. A perpetuity is a stream of regularly timed, equal cash flows that continues forever.
C. The value of a perpetuity cannot be determined.
D. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.
Business
2 answers:
Vesnalui [34]3 years ago
6 0

Answer:

The correct answers are letters "B" and "D": A perpetuity is a stream of regularly timed, equal cash flows that continues forever; The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.

Explanation:

Perpetuity means endless. In finance, a perpetuity is a flow of money that will be regularly received without a specified end date. The definition of perpetuity is used when determining an annuity's present value. The formula for this is:

PV = \frac{C}{R}

  • <em>PV</em><em> = present value </em>
  • <em>C</em><em> = cash flow </em>
  • <em>R</em><em> = discount rate </em>

In other words, perpetuity equals the sum of the present value of the stream of future cash flows.

Ratling [72]3 years ago
3 0

Answer:

The answer is D. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.

Explanation:

verification.

A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever.

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A monopolistically competitive market has characteristics that are similar to:a. a monopoly only.b. a competitive firm only.c. b
Ber [7]

Answer:

c. both a monopoly and a competitive firm

Explanation:

A monpolistically competitive firm is a firm that has the features of both a monopoly and a competitive firm

Characteristics of a monopoly in a monpolistically competitive firm:

1. Products are differentiated in a monpolistically competitive firm.

2. Firms are price setters.

Characteristics of perfect competition in a monpolistically competitive firm:

1. There is free entry and exist into the industry.

2. There are many sellers

4 0
3 years ago
Cho's Performance Pizza is a small restaurant in Miami that sells gluten-free pizzas. Cho's very tiny kitchen has barely enough
Brut [27]

Answer: Variable ... Fixed

Explanation:

In the short run, Variable Inputs or costs are known as those which can be changed and their quantities can be varied. In this scenario, the employees that Cho's uses can be varied and so are the Variable Inputs.

Similarly, those costs that cann ot be changed or varied in the short run are rightly known as Fixed Inputs. Cho's Kitchen cannot take more than 3 ovens and also she has already signed a lease for them. These costs cannot be changed and so make the oven a Fixed Input.

It is worthy of note that in the long term, all Costs are considered Variable.

7 0
3 years ago
To satisfy their economic wants, people ______ goods and services.
Taya2010 [7]

Answer: Consume.

Explanation: To satisfy their wants humans tends to consume goods and services. consumes in this sentence is used to indicate the Human purchasing power to sati their needs. And what are human needs this are what we need to survive on a daily basis mainly food, clothes and shelter. So by consuming goods and services we are satisfying our need.

3 0
3 years ago
Practice Question 25 Which one of the following is an effective method of evaluating a cost center? Compare actual total costs w
Afina-wow [57]

Answer:

C). Compare actual controllable costs with flexible budget data.

Explanation:

The Cost center is very crucial to be determined by an organization as it indirectly bestows its profitability. It is usually calculated by comparing the actual cost generated by the department to the expectations as per the budgeted cost. Thus, the most constructive method to evaluate a cost center would be the 'comparison between the actual controllable costs and the flexible budget data' as it helps in assessing the actual expense incurred during the year and whether it is lesser or greater than the cost estimated in the budget. Hence, <u>option C</u> is the correct answer.

6 0
3 years ago
Read 2 more answers
Multinational enterprises (MNEs) have an impact far beyond their firm boundaries. Assume you are working for a small firm that s
In-s [12.5K]

Answer:

Multinational enterprises (MNEs)

Relationship Change as the MNE moves from Globalization 2.0 to Globalization 3.0 operations:

This move means that Indian and Chinese companies would be competing with my local small firm.  The MNE may be looking for cheaper prices for my company's products and services, which the Indian and Chinese companies would more efficiently supply it.  My firm may be on the precipice of liquidating if this MNE is our major customer.  My firm must move fast to become more competitive by differentiating our products and services with better quality and perhaps reduced production costs, to enable it compete more favorably with the Indian and Chinese competitors.  Otherwise, we may regard the relationship as nearing its end and prepare for other opportunities with other companies.

Explanation:

Globalization reduces national boundaries by integrating national economies into a globalized economy, thus enabling companies to compete globally for financial resources, goods, and services.  When Globalization 1.0 happened, countries were globalized and the world became a global village.  When Globalization 2.0 from which the G7 profited largely, companies were globalized.  With the current Globalization 3.0, individuals are being globalized, and the highest beneficiaries are Indian and Chinese nationals who appear better prepared to take on the world, garner most of the important resources to themselves, and call the shots from the boardrooms.  An example is Microsoft's current CEO, Satya Nadella, who is an Indian-American.

4 0
3 years ago
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