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ahrayia [7]
3 years ago
10

If $ 10,000 is invested in a certain business at the start of the​ year, the investor will receive $ 3 comma 000 at the end of e

ach of the next four years. What is the present value of this business opportunity if the interest rate is 4​% per​ year?
Business
1 answer:
Vlada [557]3 years ago
7 0

Answer:

$889.70

Explanation:

The computation of the net present value is shown below:

= Present value of all yearly cash inflows after applying discount factor - initial investment  

where,  

The Initial investment is $10,000

All yearly cash flows would be

= Annual amount received × PVIFA for 4 years at 4%  

= $3,000 × 3.6299

= $10,889.70

Refer to the PVIFA table

So, the net present value is

= $10,889.70 - $10,000

= $889.70

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For each of the following changes in the market for apples, explain why the supply of apples will
dedylja [7]
  1. When the tax on apples is reduced, it becomes cheaper to sell apples. This would lead to an increase in supply.
  2. The invention of the machine would lead to an increase in the efficiency of picking apples. This would lead to an increase in supply.
  3. If the wages of apple pickers is increased, the cost of picking apples for an apple seller would increase. This would lead to a decrease in the supply of apples.
  4. The step taken by the orchard owners would lead to less apples been available. This would lead to a decrease in the supply of apples.
  5. If it is apple season, trees would produce more apple. This would lead to an increase in the supply of apples.

Supply measures the quantity of a good that is produced at a given price. Only a change in the price of a good leads to an increase or decrease in the quantity supplied of the good. Other factors lead to a change in the supply of a good.

<u><em>Factors that lead to a change in the supply of a good </em></u>

  • A change in the number of suppliers
  • A change in government policies.
  • A change in the cost of production
  • A change in the price of substitute products

An increase in supply leads to a rightward shift of the supply curve, while a decrease in supply leads to a leftward shift of the supply curve

To learn more about a change in supply, please check: brainly.com/question/13225200?referrer=searchResults

5 0
3 years ago
What change in investment strategies has contributed to our economic system evolving into institutional capitalism, according to
Oxana [17]

Answer:

From the end of the Middle Ages to the first centuries of the Modern Era, some new investment strategies were developed, which contributed greatly to the development of capitalism.

Explanation:

In particular, group investment in companies that did not have a single, personal owner. This is what we know today as corporations.

The main advantage of a corporation is that many investors pour their money, something that raises the amount of capital, while at the same time not holding full personal responsability over their investments in case the corporation fails. In other words, investors do not have to pay with their personal wealth in case of corporate failure.

Two important early corporations are the Dutch East India Company, and the British East Indian Company. They were very important for the development of capitalism.

5 0
3 years ago
Allocating a transaction price to multiple performance obligations includes which of the following steps: Consolidate the compon
rjkz [21]

Answer:

The best measure of fair value is what the good or service could be sold for on a standalone basis (standalone selling price).

Explanation:

A performance obligation can be defined as a promise made in a contractual agreement by a seller or service provider to provide goods and services to a customer. This obligation exists only if a customer can benefit from the goods or services provided.

Allocating a transaction price to multiple performance obligations includes;

The best measure of fair value is what the good or service could be sold for on a standalone basis (standalone selling price).

7 0
3 years ago
10. ABC Company uses a job-order costing system and computes its predetermined overhead rate annual on the basis of direct labor
Ne4ueva [31]

Answer:

Predetermined overhead rate is $9 per labor hour

Explanation:

Estimated Direct-labor hours = 10,000

Estimated Manufacturing overheads = Estimated Fixed overheads + Estimated variable overheads

Estimated Manufacturing overheads = $50,000 + $40,000

Estimated Manufacturing overheads = $90,000

Predetermined overhead rate = Estimated Manufacturing overheads / Estimated Direct-labor hours

Predetermined overhead rate = 90,000 / 10,000 = $9 per labor hour

8 0
3 years ago
For business owners to achieve their goals, certain laws guide their business dealings and transactions.
Readme [11.4K]
Last time i checked that was true good luck 
8 0
3 years ago
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