<span> To find it, divide the total </span>cost<span> (TC) by the quantity the firm is producing (Q).
Hope this helped</span>
Jones Brothers currently set up a belief fund a good way to offer annual scholarships of $12,000 indefinitely. those annual scholarships can first-rate be described by means of one of the following phrases perpetuity.
A perpetuity is a protection that pays for an infinite quantity of time. In finance, perpetuity is a regular stream of equal cash flows without a give-up. The idea of perpetuity is also utilized in several monetary theories, consisting of the dividend bargain model (DDM).
A perpetuity is a kind of annuity that lasts for all time, into perpetuity. The move of coins flows continues for a limitless amount of time. In finance, a person makes use of the perpetuity calculation in valuation methodologies to locate the present price of an organization's cash flows when discounted lower back at a certain rate.
One instance: of a perpetuity is the UK's authorities bond referred to as a Consol. Bondholders will acquire annual fixed coupons (hobby payments) as long as they preserve the quantity and the authorities do now not stop the Consol.
Perpetuity is a perpetual annuity, it's miles a chain of the same countless coin flows that arise at the quit of each length and there may be the same c programming language of time among the coin flows. the present value of perpetuity equals the periodic coins float divided by using the interest rate. A perpetuity is the sum of a regular collection of fixed payments to be able to by no means stop. it's miles present-day price of all the one's bills inside the destiny. a few human beings define perpetuity as an annuity within the general experience (as opposed to the unique insurance settlement).
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Answer:
The correct answer is option B.
Explanation:
The total revenue and profits of the industry as the price level increases with increase in the demand.
When there is an increase in the demand for the output of an industry, that industry will increase the production to match the increase in the demand. The increase in production will cause output level to increase.
In order to produce more output the industry will require more inputs, so the demand for inputs will increase.
An increase in the demand for inputs will be accompanied by increase in their prices.
There will not be any decline in the price of inputs.
Answer:
Present Value 5,715,331.32
We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital structure of the company
Accepting a project with a higher cost will not generate enought cashflow to sustain the patyment of debt and the return expected from the stockholders therefore, will generate a economic result and investor will leave the company for other which can sustain their desired return.
Explanation:
We are going to discount the yearly cash-flow at the given rate of 12.50%
then, the terminal value which is the present value of the future period will also be discounted at this rate.
The sum of all this will be the present value of the firm.
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The formula we use the present value of a lump sum:
We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital estructure of the company
B characteristics of the children etc
