Answer:
a-1 Present value = 6,177.39
a2- Present Value =6,227.79
a3- Choose the payment stream with the highest present value = a2
b1- Present Value=3,353.98
b2-Present Value=2,805.28
b3-Choose the payment stream with the highest present value = b1
Explanation:
a-1 describes an ordinary annuity whose present value is calculated as follows:
![Present value =PMT*\frac{[1-(1+i)^-^n]}{i}](https://tex.z-dn.net/?f=%20Present%20value%20%3DPMT%2A%5Cfrac%7B%5B1-%281%2Bi%29%5E-%5En%5D%7D%7Bi%7D)
where PMT=$800; i= 5%, n= 10
![Present value =800*\frac{[1-(1+0.05)^-^1^0]}{0.05}](https://tex.z-dn.net/?f=%20Present%20value%20%3D800%2A%5Cfrac%7B%5B1-%281%2B0.05%29%5E-%5E1%5E0%5D%7D%7B0.05%7D)
= 6,177.39
a2- ![Present value =600*\frac{[1-(1+0.05)^-^1^5]}{0.05}](https://tex.z-dn.net/?f=Present%20value%20%3D600%2A%5Cfrac%7B%5B1-%281%2B0.05%29%5E-%5E1%5E5%5D%7D%7B0.05%7D)
= 6,227.79
a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.
b1- ![Present value =800*\frac{[1-(1+0.20)^-^1^0]}{0.20}](https://tex.z-dn.net/?f=Present%20value%20%3D800%2A%5Cfrac%7B%5B1-%281%2B0.20%29%5E-%5E1%5E0%5D%7D%7B0.20%7D)
= 3,353.98
b2-![Present value =600*\frac{[1-(1+0.20)^-^1^5]}{0.20}](https://tex.z-dn.net/?f=Present%20value%20%3D600%2A%5Cfrac%7B%5B1-%281%2B0.20%29%5E-%5E1%5E5%5D%7D%7B0.20%7D)
=2,805.28
b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.
Answer and Explanation:
In the absence of sufficient information about the expenses and other factors, which related to money, we have to consider market price as the value of shrimp.
The value of Shrimp is $10,700 per ton because, In this scenario, we have only market rate to consider the value of shrimp.
Therefore $10,700 is the price of 1-ton shrimp.
Answer:
B. 0.1446
Explanation:
Yield refers to the benefits or earnings realized from an investment over a particular period.
Calculation of yield considers the profits made and the amounts invested.
The amount invested in this case
The commission =$1,340.75
Costs of the shares = 258 x $73.96 =$19,081. 68
Total cost of investment
= $19,081. 68 + $1,340.75
= $20,422.43
The gain realized = $11.45 x 258
=$2,954.1
Annual yield= =$2,954.1/$20,422.43
=0.144649
=0.1446
I think it’s b it is the most right played out
Answer:
The Pandemic has made chicken more expensive, in order to offset this effect to consumers, government subsidized the price of chickens by a per-unit subsidy. If it wants to study the substitution effect of this subsidy, the government should imposed a Lump-sum tax.
False
Explanation:
The government should have imposed a lump-sum subsidy if it really wanted to study the substitution effect of the subsidy instead of imposing a lump-sum tax. This subsidy should be granted to chicken farmers to reduce their production costs, which will in turn reduce the cost of chicken to the consumers. A lump-sum tax sounds like a contradictory effort to offset the high cost of chicken on the consumers.
