Answer:
The accumulated present value is $67,518.99.
Explanation:
Investment opportunities that require a series of payments of a fixed amount for a specific number of periods are known as annuities.
The Present Value of this annuity can be calculated as :
Fv = $0
n = 30
r = 4.2 %
Pmt = - $4,000
P/ yr = 1
Pv = ?
Using a financial calculator, the Present Value (PV) of the annuity is $67,518.9948 or $67,518.99.
Answer:
Two-way flow
Explanation:
Personal selling is one of the methods used by salespeople to drive sales. It involves face-to-face interaction with customers who are persuaded to purchase the product.
This method relies heavily on effective communication mostly the two-way flow of communication.
Two-way flow of communication means that when a message is conveyed to the customer there is feedback to the salesperson. The feedback is used to decide the best course of action to be taken in order to complete the transaction
Answer:
A) Valuable assets such as the company's reputation, the quality of its work force, and the strength of its management are not captured on the balance sheet.
Explanation:
As we know that the balance sheet records the assets, liabilities and the equity of the company. Now the main problem with the balance sheet is that the valuable assets such as reputation of the company, work force quality, management strength would not captured here as it only records the monetary transactions.
Therefore the correct option is a.
Answer:
Fixed cost in an organization does not change and is fixed while the variable cost keep changing if the production is increased.
Explanation:
Fixed cost are said to be that cost which does not change with production level for a certain limit. Let us suppose there is no change in the rent amount if we have only factory for the production of goods.
But the variable cost are those cost which increases as production increases. More will be the variable cost when the production will be more. Also for per unit basis, the variable cost remains the same.
Fixed cost are not important in decision making if there is an excess of capacity available.
For example,
Direct labor, direct material -- variable cost
Salary of supervisor, rent of factory -- fixed cost
Even though there is not much change in the variable cost, like for suppose material price increases, a company can still make a budget that is based on the past experience and predicting the market prices. Similarly, if there is a machine that uses three units of direct material for a piece if finished product, which is not going to change in the future. Thus the company can make a budget.
Answer:
D. The interest income will be greater in the third year than in the first year.
