The answer is B.
Export subsidies are a mechanism for governments to increase exports and decrease domestic sales. There are a number of ways this can be achieved and one such way is to subsidize the domestic producers directly. Essentially export subsidies mean foreign importers pay less than domestic consumers, promoting exports.
Answer:
Total PV= $2,736.39
Explanation:
Giving the following information:
Year Cash Flow
1 $ 870
2 950
3 0
4 1,540
<u>First, we need to calculate the real annual discount rate:</u>
Quarterly Discount rate= 0.08/4= 0.02
Real annual interest rate= [(1+i)^n] - 1
Real annual interest rate= [(1.02^4) - 1]
Real annual interest rate= 0.08243
<em><u>Now, we can calculate the present value of the cash flows:</u></em>
PV= Cf/(1+i)^n
Year 1= 870/1.08243= 803.75
Year 2= 950/1.08243^2= 810.82
Year 4= 1,540/1.08243^4= 1,121.82
Total PV= $2,736.39
Answer:
£718,607
Explanation:
Annuities are investment opportunities that require an initial settlement and gives a series of returns of a fixed amount for a specific number of periods.
In simple terms, the question requires us to calculate the amount to be paid today (Present Value) of an annuity that pays £80,000 per year for the next 10 years.
To establish the [Present Value of the Annuity, the future Cash Flows must be discounted to the Present Value using the appropriate discount rate. In our case, we will use the annual effective interest rate of 2%.
Present Value = PMT × [ 1 - 1/(1+r)^n ÷ r ]
Where,
PMT = £80,000
n = 10
r = 2%
Therefore,
Present Value = £80,000 × [ 1 - 1 / (1.02) ^ 10 ÷ 0.02]
= £718,606.80 or £718,607
Conclusion :
She be willing to pay £718,607 today for the annuity.
$7,700
Explanation:
$18,500 - $6,000 - $4,800 = 7,700
Although price searchers can set their prices for products, the prices they can set are however, still affected by market conditions: True.
<h3>What is price?</h3>
Price refers to the amount of money that is set by a seller and must be paid by a buyer (customer) to the seller (producer), so as to enable the acquisition of these goods or services.
Although price searchers can set their prices for the goods (products) they sell or service they render, the prices they can set are however, still affected by various market conditions such as:
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