Answer:
B. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.
C. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.
Explanation:
A Perpetuity is a financial instrument that pays the holder forever or in perpetuity. For example, a bank paying you $800 per year for ever because you invested $40,000.
There are certain characteristics
Option B
The Perpetuity like most financial Securities has its value based on the underlying cashflows that it can accumulate. This means that it's value is based on the present value of it's future cashflow so the other the cash payments, the higher the present value.
Option C.
As the discounted cashflows in the nearer future will be discounted less by the discount rate as opposed to the cash flows further in future, the cashflows nearer to the present in time will contribute more to the Perpetuity than the cashflows further in time.
For example using that first example, $800 per year at a rate of 5% will be discounted to $762 in the first year but in year 10 will be discounted to $491.
Answer:
A specific trade agreement would be the US - Colombia trade agreement, which was signed on 2006.
Explanation:
This trade agreement reduced 80% of tariffs that used to applied to goods exported from the U.S. to Colombia, and from Colombia to the U.S.
The agreement benefits consumers in both countries because it allows each country to specialize in the production of those goods that they do best, for example, coffee in the case of Colombia, and industrial goods in the case of the United States.
However, because the United States is a much more powerful country, with a higher level of development, consumers in the US have benefited more than Colombian consumers.
Answer:
B. Are the performance measures fair?
Explanation:
In order to know whether the methods used by the system are acceptable to both the supervisor and employees, the best question Marissa can ask about the method used is if it is fair? Fair here indicates whether the supervisor or employees think the performance measures or method used isn't bias and shows no favouritism or discrimination. The level of fairness shows/determines the acceptability of employees on the performance measures.