The present value of a deferred perpetuity is $1,938.89.
What is present value?
The present value of a prospective sum of money or cash flow stream given a specified return rate is known as its present value (PV). The present value of future cash flows is reduced by the discount rate, and the higher coupon rate, the lower the present value of future cash flows. The key to correctly valuing future cash flows, whether they are earnings or debt obligations, is determining the appropriate discount rate. The concept of present value states that a quantity of funds today is worth greater than the same amount in the long term. In other words, money gained in the long term is not as valuable as money received today.
The present value of a deferred perpetuity that pays $141 annually with the first payment occurring at year 5 is $1,938.89. This can be calculated by taking the present value of an ordinary annuity formula, which is PV = A / (1 + r)^n, and adding 5 to n. This gives the equation PV = A / (1 + r)^(n + 5), which can be simplified to PV = A / (1 + r)^n * (1 + r)^5. Thus, the present value is $141 / (1 + 0.06)^10 * (1 + 0.06)^5, which equals $1,938.89.
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Answer:
HIV AIDS is contagious disease. It is responsibility of the healthcare professionals to handle the person with special care. This virus spread quickly in the body of the victim and the person is often unaware of the disease due to very mild or no symptoms.
Explanation:
To: CEO
Park lane Hospital
Central London,
09 - 06 -2021.
Respected Sir,
It is to bring into your knowledge about the spread of HIV/AIDS in the city. The people are unaware about the disease spread and those infected are carrying disease to others. There should be campaign run by the hospital to inform people about the spread of this contagious disease and preventions measures.
There should also be special arrangement for the people infected by the disease to stay and live in a separate house so the spread can be stopped. The hospital can allow people with symptoms for a free checkup so that more people can come and have their routine checkup.
It is high time because if the spread will increase at the same rate then controlling the disease would become difficult.
Regards,
John Andrews.
Answer:
This is an example of Invisible Hand.
Explanation:
The invisible hand concept describes the individual effort in providing benefit to overall society by his untiring efforts. The market force that helps the demand and supply of goods in a free market to reach equilibrium automatically and providing benefits to its own people.
Answer:
b. do not require customers to enter the service factory.
Explanation:
Possession processing involves tangible services provided on property belonging to a customer. It involves activities like lawn mowing, cleaning services. The property that is recoevong the action must be present but the customer does not need to be.
In people processing on the other hand, the customer is present and services provided are intangible, knowledge based, and customised to each client. For example retail banking services.
