Answer:
Option (d) $86,864
Explanation:
Present value = Cash flow × Discounting factor
Here,
Discounting factor = ( 1 + r )⁻ⁿ
n = the year of cash flow
r = discount rate = 12%
Year (n) Cash flow Discount factor Present Value
3 $11,000 0.71178 $7,830
5 $50,000 0.567427 $28,371
6 $1,00,000 0.506631 $50,663
Therefore,
The amount he or she should pay for the investment today
= ∑(Present value)
= $7,830 + $28,371 + $50,663
= $86,864
Hence,
Option (d) $86,864
If this is a TRUE/FALSE question, the answer is TRUE.
There are other factors to consider such as benefits, scope of the job, job fit, etc.
These things can be more important than having a large salary.
Answer: A. The internal rate of return is expressed as a percent rather than the absolute dollar value of present value.
Explanation:
The internal rate of return is used in calculating the rate of return for the investment of a company. During the calculation, external factors like cost of capital, inflation, risk free rate are all excluded.
The internal rate of return method is not subject to the limitations of the net present value method when comparing projects with different amounts invested because it's expressed as a percent rather than the absolute dollar value of present value..
Answer:
Total Deposits = $4937.5 billion
Explanation:
given data
currently in reserves = $400 billion
reserve requirement = 8 percent
reserves amount = $5 billion
solution
first we get here Minimum Required Reserves that is express as
Minimum Required Reserves = Current Reserves - Excess Reserves .........................1
put here value we get
Minimum Required Reserves = $400 billion - $5 billion
Minimum Required Reserves = $395 billion
and
Total Deposits is express as
Total Deposits = 
......................2
Total Deposits = 
Total Deposits = $4937.5 billion
Answer:
C. Negative; Positive
Explanation:
If soda and sandwiches are complementary goods, then the cross price elasticity between them is negative. Negative cross price elasticity indicates that an increase in the price of soda would result in a fall in the quantity demand for sandwiches. On the other hand, a decrease in the price of soda would result in an increase in the quantity demanded for sandwiches.
If yogurt and sandwiches are substitute goods which means that yogart can be used in place of sandwiches or sandwiches can be used in place of yogurt. The cross price elasticity between the substitute goods is positive. Positive cross price elasticity indicates that an increase in the price of yogurt would result in an increase in the quantity demanded for sandwiches. On the other hand, a decrease in the price of yogurt would result in a fall in the quantity demanded for sandwiches.
