Answer:
$43,294.77
Explanation:
Here is the full question used in answering this quetion :
You win a lottery that pays $10,000 each year for the next 5 years beginning next year. How much are your winnings worth today if the market interest rate is 5%?
Present value is the sum of discounted cash flows
PV can be calculated with a financial calculator
Cash flow in year 1 - 5 = $10,000
i = 5%
PV = $43,294.77
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
Tina's Tunes is likely to fail because it is ignoring the technological environment.
Explanation:
Technological Environment Technological change can have impact on the decisions taken by business.
Technological change can involve:
– New process of production: new ways of doing things which rises productivity of factor inputs, as with use of robotics in car assembly techniques which has dramatically raised output per assembly line worker. For example around 80% of technological change has been process innovation.
– New products: For example, online banking and many new financial services are direct result of advances in micro processor based technologies.
A firm, which is unable to cope with the technological changes, may not survive.
Networking is a socioeconomic business activity by which business people and entrepreneurs meet to form business relationships and to recognize, create, or act upon business opportunities, share information and seek potential partners for ventures.
Answer:
- Lisa cannot find the job she wants so she has stopped looking.
- Penny has a college degree in nursing, but currently has to work as a store clerk as it is the only available job in her small town.
Explanation:
Hidden Unemployment also known as Disguised Unemployment in simple terms refers to the following people; people who are not working and have given up on looking for work because they could not find any, people who have the skillset and determination to work full-time working only part time and people who are underemployed meaning that they are working a job that they are overqualified for.
Hidden Unemployment is considered hidden as it is not reflected in employment statistics.
Lisa could not find a job so she stopped looking. This is Hidden Unemployment and official figures will not even count her as unemployed because you need to be actively looking for work to be classified unemployed.
Penny is overqualified for the store clerk position she holds or rather she is qualified for a different profession. Employment statistics will however show her as employed.
