Sales decrease by 20 if temperature increases by 10 degrees
Answer:
The annual rate of return over the entire 15 years was of 5.64%.
Explanation:
Having made an investment for 15 years, with a varying interest rate, it is necessary to add all the annual interests and then divide them by the number of years to determine the average annual interest rate of said investment.
Thus, this investment had an annual interest rate of 3.3% for 7 years, and 7.7% for 8 years. Thus, it had an accumulated interest of 84.7% (3.3 x 7 + 7.7 x 8 = 84.7), which, divided by the 15 years that the investment lasted, give an average annual interest of 5.64% (84.7 / 15 = 5.64 ).
Answer:
Explanation:
1. Borrow SF 200,000 at a rate 5%, (SF200,000/1.05) = SF 190,476.
2. Convert SF 190,476 to USD at a spot $0.48
SF190,476 x $0.48 = $91,428
3. Invest $91,428 at 6% = $91,428 x1.06 = $96,914
Answer:
The Penetration Strategy
Explanation:
The penetration strategy is aggressive. It primarily seeks to increase a firm's share of total sales in a particular market or for a particular product. The prices are lowered to achieve the acquisition of a large percentage of consumers in a competitive market.
One of the goals of the firms who use this strategy is to significantly reduce the sales of the competitors so much so, they are forced to drop out of that market.
To effectively carry out the penetration strategy, the following methods are used:
- Price reduction which is what this question is about
- Terms Improvement- Better customer experience among others
- Expanded Marketing- Creative ways of marketing existing products
- Product Differentiation- Creating a radically different product that attracts customers
- Distribution Channel - Creating more aggressive channels for product distribution
Answer:
The value today = $8,573.36
Explanation:
<em>The value today of the investment would the present value of annuity of 1,100 receivable discounted at the at the rate of 8%.</em>
<em>The PV of the payment would be done as follows:</em>
<em>The number of payments would be 20 installments. Please be mindful not to say 19. Remember the first the payment occurs in year 4 which is inclusive.</em>
PV = A × 1- ( (1+r)^(-n))/r
A- annual payment
r- rate of return
n- number of years
DATA
A- 1,100
r- 8%
n- 20
PV = 1,100 × 1- (1.08)^(-20)/0.08 = 10,799.96
PV (in year 0) = PV in year 3× (1+r)^(-3)
PV (in year 0) =10,799.96 × 1.08^(-3) = 8,573.36
PV (in year 0) = $ 8,573.36
The value today = $8,573.36