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
Tcecarenko [31]
4 years ago
7

What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%

Business
1 answer:
KengaRu [80]4 years ago
3 0

Answer:

PV of Perpetuity = $5000

Explanation:

A perpetuity is a series of cash flows that are constant, occur after equal intervals of time and are for infinite period of time or are perpetual. Thus, it is like and annuity but with an infinite time period. The formula for the present value of of perpetuity is,

PV of Perpetuity = Cash Flow  /  r

Where,

  • r is the required rate of return

PV of Perpetuity = 250 / 0.05

PV of Perpetuity = $5000

You might be interested in
Which of the following statements describes the typical effect of creating a large number of refined activity cost pools for a g
lutik1710 [3]

Answer:

Hence the correct option is Option (2).

Explanation:

The correct option is (2) A system containing a large number of cost pools will not tend to exhibit substantial cost accuracy over a system containing seven to ten cost pools.

8 0
3 years ago
Flexibility development guidelines indicate that the final position for each exercise should be held for
Marina86 [1]
Flexibility development guidelines are programs that consist of exercises to develop flexibility of the joints and overall body.
In a flexibility development program or guidelines indicate that the final position for each exercise should be held for 10 - 30 seconds. The recommended frequency of these exercises is at least 2-3 times/days a week.
5 0
4 years ago
A profit maximizing competitive firm in a market with NO externalities will produce the quantity of output where
Viktor [21]

A profit maximizing competitive firm in a market with NO externalities will produce the quantity of output where

  • price = marginal cost
  • marginal revenue = marginal cost
  • marginal benefit = marginal cost

Option D

<u>Explanation: </u>

All of the options are true.

In a highly competitive market, companies set marginal incomes at marginal cost level (MR= MC) in order to make a profit. MR is the pitch of the profit curve, which represents the (D) and price (P) of the demand curve as well.

It is necessary to have positive, or negative economic benefits in the shorter term. The company profits whenever the price exceeds the total average cost. The company loses on the market if premiums are less than average total costs.

5 0
3 years ago
Select the correct answer.
UkoKoshka [18]

Answer:

B. customer relationship management

5 0
3 years ago
Do you think all business within a country benefit when the economy grows
Mumz [18]

Answer:

Explanation:

Yes, because business pay taxes and there is less need to spend money on benefits such as unemployment benefit. Therefore economic growth helps to reduce government borrowing.

5 0
4 years ago
Other questions:
  • The Year 1 selling expense budget for Apple Corporation is as follows:
    9·1 answer
  • Oil Well Supply offers 7.5 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds matu
    10·1 answer
  • for each of the following items, indicate the type of accounting change. (a1) (a) Change from straight-line method of depreciati
    9·1 answer
  • A leftward shift of the market demand curve for hdtvs, ceteris paribus, causes equilibrium price to
    7·1 answer
  • Suppose that the marginal utility of good y is 2x2 and the marginal utility of good x is 4xy. what is the slope of the indiffere
    15·1 answer
  • Monetary policy most directly impacts :
    5·1 answer
  • _________________ are more likely to arise from a group that is easily identifiable, rather than from a group where some of thos
    5·1 answer
  • Which calculations come last in the order of operations?
    6·2 answers
  • The difference between social cost and private cost is a measure of the
    8·2 answers
  • Jeanne wants to purchase a life insurance policy with guaranteed premiums. What kind of policy would she want to purchase
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!