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timama [110]
3 years ago
15

Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a serie

s of payments over time. If you pick the lump sum, you get $2,850 today. If you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. At an interest rate of 9% per year, the winner would be better off accepting the , since that choice has the greater present value. At an interest rate of 11% per year, the winner would be better off accepting , since it has the greater present value. Years after you win the lottery, a friend in another country calls to ask your advice. By wild coincidence, she has just won another lottery with the same payout schemes. She must make a quick decision about whether to collect her money under the lump sum or the payments over time. What is the best advice to give your friend? The lump sum is always better. The payments over time are always better. It will depend on the interest rate; advise her to get a calculator. None of these answers is good advice.
Business
1 answer:
Paraphin [41]3 years ago
5 0

Answer:

The correct answer would be option A, The lump sum is always better.

Explanation:

If I would have to give advice to my friend who is in the same situation as i was in some time back, I would recommend him to go for the Lump sum choice. This is because of the fact that the interest rate compounded in three years payment schedule will result in the less value of what I am getting today. Accepting the lump sum value in contrast with accepting the yearly payments on 9% interest rate would be better off because it has more value at present.

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Frank, the owner of a local furniture store that has been in business for 75 years, is retiring. He is selling his store to a ne
Nady [450]

The correct answer would be option A, Frank should share the culture of the company through stories, rites, and rituals.

As they sit down over coffee at the local deli, Frank should share the culture of the company through stories, rites, and rituals, with the new owner about the success of his business.

Explanation:

Frank is in the furniture business for so long. Now he is retiring, and he wants his business to be persuaded successfully in the future as well. He is selling his store to people who have no roots in the community. He wants to share the secret of his success to the new owner.

So to make the new owner understand the secret of success, Frank should share the culture of the company by telling the new owner, stories, rites and rituals of the company which made his business successful.

Learn more about Business Strategies at:

brainly.com/question/3325483

#LearnWithBrainly

5 0
3 years ago
The general pattern that consumption of the first few units of any good tends to bring a higher level of _______ to a person tha
ch4aika [34]

Answer:

1. utility

Explanation:

The law of diminishing marginal utility states that as consumption increases, the utility derived from consumption falls.

I hope my answer helps you

6 0
3 years ago
You are working as a communication specialist for BMW which is releasing a new luxury car in March 2021. BMW have already carrie
Ray Of Light [21]

Answer:

Here is the answer!

Explanation:

You are working as a communication specialist for BMW which is releasing a new luxury car in March 2021. BMW have already carried out a market survey and have already determined the price of the product and the targeted audience.

You are working as a communication specialist for BMW which is releasing a new luxury car in March 2021. BMW have already carried out a market survey and have already determined the price of the product and the targeted audience. Now that your company have to start a sale campaign, you have been asked to elaborate with your team the communication strategy for conducting this campaign during spring and summer (From March to August). Write your strategy in almost five pages

8 0
3 years ago
The cost, in dollars, to produce x designer dog leashes is C ( x ) = 8 x + 3 , and the price-demand function, in dollars per lea
steposvetlana [31]

Answer:

<em><u>P (x)   = 80x - 2x^2 - 3</u></em>

Explanation:

The Profit function is the revenue minus the cost.

Revenue = Price x Quantity =  X.px = x(88-2x) = 88x - 2x^2

Therefore the profit function P (x):  

P (x)  =  88x - 2x^2 - (8x+3)

<em><u>P (x)   = 80x - 2x^2 - 3</u></em>

<em><u /></em>

To maximise profit we use the 1st order condition: dP(x)/dq = 0

Therefore,  80 - 4x = 0

4x = 80

x = 20

So 20 leashes maximises profit.

P(x) = 80(20) - 2(20)^2 - 3

<em><u> P = $803  </u></em>

<em><u /></em>

The price to charge would be:

<u><em>p (x) = 88 - 2(20) = $48</em></u>

<u><em>The best reason would be that the price is a bit expensive for a leash so most people would not buy it.</em></u>

6 0
3 years ago
How do you make a profit in a bond?
Kisachek [45]

Answer:

Hold those bonds until their maturity date and collect interest payments on them. The second way to profit from bonds is to sell them at a price that's higher than what you pay initially.

Explanation:

As there is to everything, not only are there advantages, but there are disadvantages as well in bonds. Just sayin'

4 0
2 years ago
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