A home based business is part of what industry

You are evaluating an investment that will provide the following cash flows at the end of each of the following years: year 1, $

stealth61 [152]

Answer:

$37,680.95

Explanation:

The maximum i would be willing to pay is the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $12,500

Cash flow in year 2 = $10,000

Cash flow in year 3 = $7,500

Cash flow in year 4 = $5,000

Cash flow in year 5 = $2,500

Cash flow in year 6 = 0

Cash flow in year 7 $12,500

I = 9%

PV = $37,680.95

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

3 0

2 years ago

The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is ca

sineoko [7]

Answer:

The answer is consumer's surplus

Explanation:

Consumer's surplus is the difference between what the consumer or buyer is willing to pay and the amount he or she eventually paid.

For example, Mr A is willing to pay $100 for a product and the producer is willing to sell for $90. After much negotiation between mr A and the seller, he eventually paid $85. What he paid was lower than what he was willing to pay before.

So the consumer surplus is $100 - $85 = $15

3 0

3 years ago

Describe the difference between multitasking and combining tasks.

Alika [10]

Multitasking means doing two task at the same time without disturbing any of the two task.
Combining tasking means doing the task by combining means like...both of them are processing one after one for a little bit of time...

5 0

3 years ago

Read 2 more answers

Why might Business classification and behavior change?

Anika [276]

To be more professional in a business sense. If I am the president of a bank I want to be classical and professional. I change with my title.

4 0

3 years ago

1.Economics is the study of ____________________ and _________________________.2.What is opportunity cost

jolli1 [7]

Answer: See explanation

Explanation:

Economics is the study of human behavior and also how resources are allocated in the society. Economics studies the reason for the behavior in the individuals, firms or government when certain situations happen in the economy.

Opportunity cost is refered to as n alternative cost that's, the cos if what we forgo when we make an alternative decision. For example, if I purchase a book for $20, the opportunity cost is something else that I could have used the $20 for.

4 0

2 years ago