How is the law of increasing costs similar to the concept of decision making at the margin?

Troy will receive $7,500 at the end of Year 2. At the end of the following two years, he will receive $9,000 and $12,500, respec

Pepsi [2]

Answer:

$33,445.44

Explanation:

The future value of an investment is its worth at a future date if the investment is done at a specific interest rate compounded yearly for certain number of years

It is computed as follows:

FV = PV (1+r)^n

FV = Future Value, PV = present value, r- interest rate, n- number of years

Future value of $7500 after 3 years:

FV = 7500× (1.08)^3 = 9,447.84

Future Value of $9000 after 2 years:

FV = 9000 × (1.08^2) = $10,497.6

Future value of $12,500 after 1 year:

FV = 12500× 1.08 = $13,500

The future value of these cashflows at the end of year 5

= 9,447.8 + 10,497.6 + 13,500

= $33,445.44

7 0

3 years ago

Read 2 more answers

On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $4,500, terms 4/10, n/30. On June 20, SH returns to

Georgia [21]

Answer: $3360

Explanation:

Based on the information given in the question, the amount of cash paid by SH to Oakley will be calculated as thus:

SH will be entitled to a discount of 4% since the payment was made within the discount period, therefore, the discount that is applicable will be:

= $4500 - $1000

= $3,500

Therefore, the amount of cash payment that is made by SH to Oakley will be:

= $3,500 - (4% × $3,500)

= $3500 - (0.04 × $3500)

= $3500 - $140

= $3360

Therefore, the amount of cash paid by SH to Oakley is $3360.

7 0

3 years ago

Which of the following statements about penetration pricing is most accurate? Multiple Choice A) Penetration pricing is more eff

scoundrel [369]

Answer: Option A

Explanation: In simple words, it refers to the pricing strategy in which the firm initially charge a lower price of product to attract the customers and make a strong position in the market.

Hence it is effective only on those markets where the customer gives value to price more than the quality and assurance he is getting from the existing product.

Thus, from the above we can conclude that the correct option is A.

5 0

3 years ago

The risk-free rate is 6% and the expected rate of return on the market portfolio is 13%. a. Calculate the required rate of retur

Andreyy89

Answer:

a. 14.75%

b. Under priced

Explanation:

The computation for the required rate of return is shown below:

a. Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 6% + 1.25 × (13% - 6%)

= 6% + 1.25 × 7%

= 6% + 8.75%

= 14.75%

b. As the required rate of return comes 14.75% and the required return is 16% so it is under priced as expected return is more than the required return

3 0

3 years ago

Stakeholder impact analysis is a _____-step process that allows managers to better understand and address stakeholders' needs.

Sliva [168]

Stakeholder impact analysis is a five step process that allows managers to better understand and address stakeholders' needs.

Stakeholder impact analysis is a five steps process. Stakeholder impact analysis allows the manager to address the stakeholders’ needs and understand them better.

Stakeholder impact analysis is five steps process that allows managers to understand the need of their stakeholders. A stakeholder is any entity either person or organization, who is directly or indirectly affects the organization or its project.

The five steps of stakeholder impact analysis are:

Identify the stakeholder: At this step, managers identify who are their stakeholders that are directly or indirectly affected by their projects, products, or services.
The interest of the stakeholder: This step defines the interest of the stakeholder
Opportunities and threats associated with stakeholders: this defines the present opportunities and threats to stakeholders
Our responsibilities to stakeholders: This process defines that what is our legal, ethical, economic, and philanthropic responsibilities to our stakeholders
Effectively address the stakeholders’ concerns: This step forces to take action to effectively address the stakeholders’ concerns.

You can learn more about stakeholder at brainly.com/question/15532995

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4 0

2 years ago