1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
romanna [79]
3 years ago
12

Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpetuities, answer t

he following questions. Which of the following are characteristics of a perpetuity? Check all that apply. The value of a perpetuity cannot be determined. 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.
Business
1 answer:
Ad libitum [116K]3 years ago
8 0

Answer:

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:

The perpetuities can becalculate as follow

C/rate = Perpetuities

the reasoning behind this formula:

C * \frac{1-(1+r)^{-time} }{rate} = PV\\

If we calculate limit whe ntime is infite,

because at more time 1 + r gets closer and closer to 0

we get on the dividend

1 - 0

So we have C x 1/i = C/i

Next part would be why the first cash flow is more relevant than the subsequent cash flow:

\frac{Principal}{(1 + rate)^{time} } = PV

Here if time increases, then the divisor get closer to ∞ so we have

P ( a constant) /∞ = 0

So the first cashflow is more relevant than the more distant cash flow

You might be interested in
Logistics systems should be designed to achieve customer service goals while maintaining lowest possible financial investment in
shepuryov [24]

Logistics system should be designed to achieve customer service goals while maintaining lowest possible financial investment in inventory.

The main purpose of logistics system is to increase the experience of the customer  and to improve profits of the organization. Reducing the cost of inventory may add to the profits of the company.

Managing the inventory is an instinct part of the smooth running of businesses. Recognizing which and how much stock has to be ordered, is useful to continue the inventory levels and content the customers. Timely delivery of the product adds to the customer satisfaction.

To learn more about inventory here

brainly.com/question/15118949

#SPJ4

8 0
1 year ago
why do the regular meetings between a portfolio manager and his or her team of analysts take place in what is sometimes called "
Delicious77 [7]

Important meetings between a portfolio manager and his or her team of analysts take place in what is sometimes called "the war room" because that is where business strategies are discussed and formulated.

<h3>What is Business Strategy?</h3>

This refers to the set plans and actions that a business takes in order to get ahead of its competition and maximize profit.

With this in mind, the strategy room is called a war room because business is effectively war, especially in a capitalist system and the portfolio manager meets with his team of analysts in order to discuss business strategies.

Read more about business strategy here:
brainly.com/question/24967768

5 0
2 years ago
Those aspects of business that a retailer can directly affect are referred to as ________.
Alexeev081 [22]

Those aspects of business that a retailer can directly affect are referred to as controllable variables. Generally speaking, strategy, marketing, finances, human resources, technology and equipment, and operations make up the six functional areas of business management. As a result, all business planners should focus on thoroughly investigating and comprehending these topics as they apply to the specific business.

The book All Aspects of the Business/Organization lists nine characteristics that apply to all businesses. The book All Aspects of the Business/Organization lists nine characteristics that apply to all businesses. For success, learners should practice and comprehend the related ideas and abilities.

To learn more about business, click here.

brainly.com/question/15826679

#SPJ4

5 0
1 year ago
Which strategy is developed to pull together the various activities and competencies of each department so that corporate and bu
777dan777 [17]
The strategy that is developed to pull together the various activities and competencies of each department so that corporate and business unit performance improves and resource productivity is maximized is <span>Functional strategy</span>
5 0
3 years ago
Houston Company's current ratio is 3 to 2. The company is negotiating a loan, and the company's management understands that a hi
DaniilM [7]
XX did no gngvend Jr be nfjfjfhdhdjdhdjkfjfjjdjzj
6 0
2 years ago
Other questions:
  • Consider the following timeline detailing a stream of cash​ flows: The timeline starts at Date 0 and ends at Date 4. The cash fl
    14·1 answer
  • When a supplies internal service fund records a billing to the general fund, the journal entry in the internal service fund will
    7·1 answer
  • Blast it! said David Wilson, president of Teledex Company. "We’ve just lost the bid on the Koopers job by $4,000. It seems we’re
    15·1 answer
  • Leonore's Luxury Leather Footwear Corp. conducted a SWOT analysis and determined that at least 57% of consumers would demand hig
    14·1 answer
  • Why do we need to do school when at home bc this is supposed to be my vaca...
    5·2 answers
  • A company acquires 1,000 shares of its own $1 par common stock for $15 per share. This purchase would be recorded with a: Select
    11·1 answer
  • At the beginning of 2021, Angel Corporation began offering a two-year warranty on its products. The warranty program was expecte
    5·1 answer
  • The U.S. government pays for _____ that producers would most likely not provide in the marketplace, such as building roads.
    13·2 answers
  • Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,470 May 3,830 June 4,570 July
    9·1 answer
  • TP Inc. is a young start-up company. No dividends will be paid on the stock over the next 9 years, because the firm needs to plo
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!