Answer:
Option B has a higher present value at time zero is correct
as shown below:
Option A future value at the end of three years = 2000*(1.06)^2+5000*(1.06)^1+5000*(1.06)^0= $12,547
Option B future value at the end of three years = 4000*(1.06)^2+4000*(1.06)^1+4000*(1.06)^0=$12,734
Option B has higher future value as determined above, so first option is wrong.
Option A present value at time zero = 2000/(1.06)^1+5000/(1.06)^2+5000/(1.06)^3= $10,535
Option B present value at time zero = 4000/(1.06)^1+4000/(1.06)^2+4000/(1.06)^3=$10,692
Option B has higher present value as determined above, so second option is correct.
Third option is wrong as Option B is not perpetuity as B has three years life.
Fourth option is wrong as Option A is not ANNUITY as A CASH FLOW amounts is not equal , it varies on annual basis.
Answer:
A c e
Explanation:
I got it right on the exam
I know three because my dad told me and I hope it helps you!! :D
Conduct market research.
Write your business plan.
Make your business legal.
The answer to this question is Branching
Banks branching allows banks to expand their services to an area outside their main home location.
While this may expand their target market share, it also improves the chances for companies to do money laundering, so restriction for this was made in the past.
Answer:
B) yes no yes
Explanation:
Particulars Product X Product Y Product Z
Units Produced 2,000 2,500 3,500
Sales value at split-off $15 $19 $20
Add: Processing cost $5 $7 $7
Sales after processing $24 $24 $29
Profit after
processing further $24- $15 - $5 $24 - $19 - $7 $29 - $20 - $7
= $4 = - $2 = $2
Yes No Yes
Since revenue after split off is from Product X and product Z, Product Y is creating negative profit that is loss from further processing.
Correct option
B) yes no yes