Which of these factors would NOT cause the supply curve for a particular good to shift?a. a change in the technology used to pro
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The total weight of the chicken is 9 kg.
The total weight of the chickens can be determined by adding the weights of the five chickens together.
Addition is a basic mathematical operation that is carried out by adding two or more numbers together.
Total weight =
7
9 kg
To learn more about adding fractions, please check:
Answer:
i. Discounted cashflow equations.
a. $180,000 at the end of five years.
This is a lump sum present value/ discounted cashflow which can be calculated as;
Formula = 180,000 / ( 1 + r)^n
= 180,000/ ( 1 + 12%)^5
= $102,136.83
b. $11,400 a year forever
This is a perpetuity. The present value/ discounted cashflow of a perpetuity is calculated as;
Formula = Amount/rate
= 11,400/12%
= $95,000
c. $19,000 for each of 10 years.
This is an annuity. The formula for calculating the Present value/ discounted cashflow of an annuity is;
where <em>i </em>is interest rate and <em>n</em> is number of periods
= $107,354.24
d. $6,500 next year and increasing thereafter by 5% a year forever.
This is a growing perpetuity. The present value/ discounted cashflow formula is;
= Amount / ( discount rate - growth rate)
= 6,500 / ( 12% - 5%)
= $92,857.14
ii. Choose <u>$19,000 for each of 10 years</u> as it has the highest present value.