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love history [14]
3 years ago
15

The time value of money refers to the issue of:

Business
1 answer:
uysha [10]3 years ago
7 0

Answer:

D. what the value of the stream of future cash flows is today

Explanation:

The times' value of money derives that today value or we can say the present value is more than the value earned at the future or future value because of the earning capacity due to inflation. As inflation rises, consumer spending become less as compare to before

Just take an example

If you invest $1,000 today that earns the interest rate at 10% for one year

So, the present value = $1,000

And, the future value = $1,000 × 1.1 = $1,100

So, today value is becoming more worth than the future value  

The formula to compute the future value is shown below:

Future value = Present value × (1 + interest rate)^number of years

Note: The yoda is actually today. It is given wrong

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When a firm initiates or increases a cash discount, the net effect on the accounts receivable investment is difficult to determi
Scilla [17]

Answer:

Yes is True that when a firm initiates or increases a cash discount, the net effect on the accounts receivable investment is difficult to determine because the nondiscount takers paying earlier will reduce the accounts receivable investment, while the new customer accounts will increase this investment.

Explanation:

Accounts Receivable is any amount of money owed by customers for purchases made on credit. It is an asset account on the balance sheet since it is money due in the short run.

As a current asset, Accounts Receivable is an important aspect of a businesses' fundamental analysis used to measures a company's liquidity or ability to cover short-term obligations without additional cash flows.

Accounts receivable Investment will be reduced if the firm initiates or increases a cash discount.

6 0
3 years ago
The nominal exchange rate is .80 euros per U.S. dollar and a basket of goods in France costs 1,000 euros while the same basket c
lukranit [14]

Answer:

Australia has purchasing-power parity with the U.S.

Explanation:

A basket of goods costs $800 in the US. The same basket costs 1,000 euros in France and 960 Australian dollars in Australia.  

The nominal exchange rate for euros is .80 euros per U.S. dollar and for Australian dollars, it is 1.2 Australian dollars per U.S. dollar.  

The purchasing power parity theory compares the currency of two countries through a basket of goods. The currency of the two countries is in equilibrium or is at par if a basket of goods cost the same in both the countries.  

This method compares the economic productivity and standard of living in two countries.  

Converting the value of basket in France into US dollars,

= \frac{1,000}{0.80}

= $1,250  

Converting the value of basket in Australia into US dollars,

= \frac{960}{1.2}

= $800

The cost of the basket of goods is same in Australia. This indicates that Australia has purchasing-power parity with the U.S.

3 0
3 years ago
Million dollar question. does money equal happiness? Explain with a paragraph
aliina [53]
It depends on the person I would definitely be happy but that’s just me
4 0
3 years ago
During its first year of operations, Silverman Company paid $10,285 for direct materials and $9,800 for production workers' wage
Salsk061 [2.6K]

Answer:

D.$3,950

Explanation:

Production = ($10,285 + $9,800 + $8,800) ÷ 5,450units

=$28,885÷5,450 units

= $5.3per unit

COGS = 3,300 units sold × $5.3 per unit

= $17,490

Net income = Revenue − Cost of goods sold − Selling and administrative expenses

Net income = (3,300 units × $7.80 per unit) − (3,300 units sold × $5.3per unit) − $4,300

=(25,740-17,490)-$4,300

= 8,250-$4300

=$3,950

Therefore Silverman's net income for the first year in operation is $3,950

4 0
3 years ago
During the 2001 anthrax scare, the U.S. government threatened to disregard Bayer%u2019s patent of ciprofloxacin, the most effect
Marianna [84]

Answer:

Consider the following explanation

Explanation:

Option A, B and D are correct, It will reduce the profit of the company who is loosing the monopoly, and fewer drugs will be invented in the market and firms are loosing the monopoly, and the sunk cost will increase.

8 0
3 years ago
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