Data representation is law of man.
Answer:
Traditional business plan format
Executive summary. Briefly tell your reader what your company is and why it will be successful. ...
Company description. ...
Market analysis. ...
Organization and management. ...
Service or product line. ...
Marketing and sales. ...
Funding request. ...
Financial projections.
Explanation:
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Answer:
Explanation:
Present value is the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.
It can be calculated using future value formula below
A = P(1+r/100)^n
where
A = Future value
P = Present value
r = Rate of interest
n = time period
Present Value = Value at Year 1 + Value at Year 4
Calculating Value at Year 1
A = $5,500
r = 8%
n = 1
From A = P(1+r/100)^n ; Make P the subject of formula
P = A ÷ (1 + r/100)^n
Substitute in values
P = $5,500 ÷ (1 + 8/100)^1
P = $5,500 ÷ (1 + 0.08)
P = $5,500/1.08
P = $5092.5925926
P = $5092.59 ----
Present Value at Year 1 = $5092.59
Calculating Value at Year 4
A = $5,000
r = 8%
n = 1
From A = P(1+r/100)^n ; Make P the subject of formula
P = A ÷ (1 + r/100)^n
Substitute in values
P = $5,000 ÷ (1 + 8/100)⁴
P = $5,000 ÷ (1 + 0.08)⁴
P = $5,000/1.08⁴
P = $3675.149263982267
P = $3675.15 ----
Present Value at Year 4 = $3675.15
Present Value = Value at Year 1 + Value at Year 4
Substitute each value
Present Value = $5092.59 + $3675.15
Present Value = $8,767.74