Answer:
Premium pricing
Explanation:
Premium pricing can be defined as a pricing strategy in which the price of a product is increased. This increase in price is done against the competitors to create the perception that the high priced products have a greater quality.
Premium pricing is used at the inception of a new product into the market. It is utilized by various companies to maximise profit because the customers are willing to pay more money, to prevent competitors from entry into the market.
Answer:
Net Present value of Project is $9,890
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Net Present Value of Property is $9,890
Workings are made in an MS Excel file, which is attached with this answer. please find it.
Financial loss. Say you don’t have insurance and your house burns down. You have no insurance to fix the damage.
Answer: $1,626
Explanation:
A Mortgage payment is a type of annuity so the Present Value of an Annuity formula can be used to calculate this.
The Period is 12 months so adjustments need to be made to the interest rate and the period.
Period.
= 25 years * 12 months
= 300
Interest Rate
= 5.89/12
= 0.4908%
Present Value of the Annuity is the mortgage amount of $255,000
Present Value of Annuity is,
P = PMT ( 1 - ( 1 + r)^-n) / r
Where,
P = Present Value
PMT = payment per period
r = Interest rate
n= no. of periods
255,000 = PMT ( 1 - (1+0.4908%)^-³⁰⁰) / 0.4908%
255,000 = 156.8456 PMT
PMT = 255,000/156.8456
= $1,625.80
= <u>$1,626</u>
Answer:
cost = 214528
Explanation:
the cost of the asset includes
. purchase price
. directly attributable cost and
. certain future costs
in the given scenario
purchase price = 196022
direct. attributable cost :
commission cost = 16158
net removal cost (4993-2645) = 2348
total cost of land = 214528
