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liberstina [14]
4 years ago
9

The present value of a stream of cash flows you expect to received will always increase when: a. the interest rate is greater th

an zero and the number of compounding periods decrease. b. the interest rate is zero and the number of compounding periods decrease. c. the interest rate is zero and the number of compounding periods increase. d. the interest rate is greater than zero and the number of compounding periods increase.
Business
1 answer:
AlekseyPX4 years ago
3 0

Answer:

B) the interest rate is zero and the number of compounding periods decrease.

Explanation:

When you are calculating the present value of a future cash flow if the discount rate (interest rate) is lower, the higher the present value. Also, if the number of periods is shorter, the present value will be higher.

Inversely, a higher discount rate or larger number of periods, the lower the present value.

Since the smallest possible discount rate is 0, then that would maximize the present value, along with shorter periods.

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c

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What is the answer to number 2?
KiRa [710]

Answer:

$6.9

Explanation:

If gallon of milk cost 1.12 in 1970, we can calculate the expected price in 2009 per gallon of milk using the proportion below:

2009 price/214.5 = $1.12/38.8

=>Find the expected price of 2009 by cross multiplying

38.8 × 2009 price = 1.12 × 214.5

38.8 × 2009 price = 240.24

=>Divide both sides by 38.8

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Expected price of gallon of milk in 2009 = $6.19

8 0
3 years ago
Which of the following is not a reason for redesigning a product or service? Multiple Choice to attract and increase customer de
Wewaii [24]

Answer:

to increase the level of employee satisfaction

Explanation:

Redesigning a product or service does not necessarily have to do with improving employee satisfaction, but it would be great if it does it as a side effect.

Redesigning a product or service costs money, and usually a lot of money, so c company must perform a cost benefit analysis before doing so. The main reason why a company would carry out a redesign is simply to increase consumer demand and total sales. This is generally achieved by increasing the quality of the product or service, and therefore consumer satisfaction. It can also do it to lower production costs, which also increases profits.

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