Answer:
The monetary value is $24,201.23
Explanation:
Giving the following information:
Cash flows:
Year 1= $6,800
Year 2= 6,800
Year 3= 6,800
Year 4= $15,000.
The discount rate is 15 percent.
We need to discount each cash flow to the present value:
PV= FV/(1+i)^n
Year 1= 6,800/1.15= 5,913.04
Year 2= 6,800/1.15^2= 5,141.78
Year 3= 6,800/1.15^3= 4,471.11
Year 4= 15,000/ 1.15^4= 8,576.30
Total= $24,201.23
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Answer:
$472.10
$482.78
decreasing the discount rate increases the present value of the willingness to pay
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 0 - 2 = $150
Cash flow in year 3 = $50
PV when I is 5% = 472.10
PV when I is 3% = 482.78
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Explanation:
We have to note an important point here is that, Smith has plan to sell fraudulent identification card through Jones and he has done only Oral agreement.
An oral agreement does not have a proof. Any oral agreement cannot be taken as a proof legally. There must be a proper written agreement required to prove the relationship. There are certain standard too in written agreement.
For Example, agreement written on a normal white paper cannot be accepted. The agreement should be legally signed according the bond paper provided and authorized by the Government.
Considering all the above discussion, Jones stands right.
Answer:
Price packs
Explanation:
- a type of sales promotion where customers are given a discount off the product's regular price; the discount is typically marked, or "flagged," prominently on the label or package; also known as a "cents-off" deal.
- Price packs are sales promotions that provide consumers with a reduced price that is marked directly on the package by the manufacturer.
- Here two or more products are given together at the price of one or at discounted rates.
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