Yearly payments, P = $3,600
Annual discount rate, i = 8% = 0.08
Number of years, n = 12
Present value (PV) when payments are done at done the beginning of each year:
PV = P+P[1-(1+i)^-(n-1)]/i = 3,600+3,600[1-(1+0.08)^-(12-1)]/0.08 = $29,300.27
Present value (PV) when payments are done at the end of each year:
PV = P[1-(1+i)^-n]/i = 3,600[1-(1+0.08)^-12]/0.08 = $27,129.88
The difference between the two values = $29,300.27 - $27,129.88 = $2,170.39
False because the
objective of <span>Trade Promotions can offer several benefits to
businesses. Moreover, companies use Trade Promotions to improve distribution of
their product at retailers and strengthen relationships with retailers. Most
importantly trade Promotions can be advantage to introduce new product dispatch
into retail stores </span>
Answer:
The present value of the future earnings is $51,981,214.36
Explanation:
The present value of the earning can be calculated by discounting the earnings for the next five years along with calculating the terminal value of earnings at the end of the five years when the growth rate in earnings becomes constant and discounting it back to the present value.
Taking the value in millions,
Present Value = 1 * (1+0.3) / (1+0.08) + 1 * (1+0.3)^2 / (1+0.08)^2 +
1 * (1+0.3)^3 / (1+0.08)^3 + 1 * (1+0.3)^4 / (1+0.08)^4 + 1 * (1+0.3)^5 / (1+0.08)^5 + [( 1 * (1+0.3)^5 * (1+0.02) / (0.08 - 0.02)) / (1+0.08)^5]
Present value = $51.98121436 million or $51,981,214.36
Business is an important human activity that has allowed humans to survive better because it:
- allows people access to goods and services - thanks to business, people are able to trade goods that they have for goods that they want thereby ensuring that human needs and wants are satisfied
- is a source of income - engaging in business allows people to earn money that they can use to get things that they want either as employees or as owners.
For these two main reasons, we can conclude that business is important because the satisfaction of human needs and wants is paramount to the survival of our species.
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Answer:
Perfect Competition market structure
Explanation:
This exists where a good no of buyers and sellers trade in similar products at a closely related price.In such structure , it is difficult for a particular firm to influence the price of its product as there is little or very minimal influence on the price of the commodity.