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Ede4ka [16]
3 years ago
6

is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate cal

culations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 5 percent? (Click to select) Requirement 2: (a) If the discount rate is 23 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 23 percent?

Business
1 answer:
Artemon [7]3 years ago
7 0

Answer and Explanation:

1A. For investment X, given 6% discount rate, 6700 PMT, N= 9 years

Present value of investment X= 6700* PVIF using 6%, 9 years

= $45751.34

For investment Y, given 6% discount rate, 9200 PMT, N= 5 years

Present value of investment Y =9200*PVIF using 6%, 9 years

=$38753.75

1B. Investment X from the above has higher present value

2A. For investment X, given 22% discount rate, 6700 PMT, N = 9 years

Present value of investment X

=6700*PVIF using 22% ,9 years

= $25368.11

For investment Y, given 22% discount rate, 9200 PMT, N = 5 years

Present value of investment X

=9200*PVIF using 22% ,N = 5 years

= $26345.49

2B. Investment Y from the above has higher present value.

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Answer:

While setting the price of a product, managers must consider all of the following: A) cost of the whole marketing mix B) buying capacity of the customers C) profit it should bring the company D) transportation cost E) personnel cost to the company

Explanation:

Key factors in calculating the sale price can be:

  • Costs are a major factor in determining the selling price and a way of forming a price that is primarily related to costs called “ground” because it represents the minimum at which the price can be set. It includes cost plus other costs with no projected or minimal profit;
  • Demand/buying capacity as a key factor in price calculation is tied to a method called the "ceiling" because capacity exceeds the price limit that customers are willing to accept to get a product or service.
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Cost-based pricing has its sub-methods such is Cost plus method

The basic principle is to add a rate of profit to the sum of direct and indirect costs. This way price consider a profit to it should bring to company.

Direct costs include material and labor costs, and indirect or general costs comprise a portion of fixed indirect costs such as depreciation, administration costs, sales costs and other general costs.

Formula: price = Direct costs + Indirect costs + Rate of profit

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Explanation:

Given: The company's market share had changed from 40 to 21 percentage points.

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