Answer:
The value of x is 566.36
Explanation:
The value of x should be such that the present value of both Investments is the same when discounted at a rate of 11%. To calculate the present value, we use the following formula,
Present Value = CF 1 / (1+r) + CF 2 / (1+r)^2 + ... + CFn / (1+r)^n
Where,
- CF represents Cash flow
- r represents the discount rate
So, we equate both the present value of Investment A and B to calculate the value of x.
Present Value of A = Present Value of B
450/(1.11) + 650/(1.11)^2 + 850/(1.11)^3 = 850/(1.11) + x/(1.11)^2 + 450/(1.11)^3
1554.472661 = 765.7657658 + x/(1.11)^2 + 329.0361216
1554.472661 - 765.7657658 - 329.0361216 = x/(1.11)^2
459.6707736 * (1.11)^2 = x
x = 566.3603602 rounded off to 566.36
Answer:
b. Maximize owner's wealth.
Explanation:
The owners wealth is usually measured by the financial behaviour of shares. In that sense we can find two reasons why is so important for the firm's management.
1. The managers recieve a greater compensation when the performance of the share increases their value. The managers have an incentive in order to keep the price of shares high.
2. Is a market oriented reason. For shareholders, consumers, banks and stakeholders, a good performance of the share is a positive signal for future investments, quality of the services and products and stability in the long run.
Answer:
Elasticity
Explanation:
Elasticity -
Elasticity is one of the characteristics of the cloud computing .
Elasticity makes the cloud computing different from the older grid computing .
It refers to the factor by which the system is capable to adapt to the changes in the workload by provisioning and de - provisioning the resources automatically , is referred to as elasticity .
Faster the provision and de - provision may lead to storage or customers applications.
Hence , from the given scenario of the question ,
The correct answer is elasticity .
The answer is B. I just had this question on Edgenunity.
