1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Oxana [17]
3 years ago
5

You are considering two home security companies for your new house. The first company offers free installation and equipment, bu

t will charge you $401.00 per year forever. The second company charges $783.00 for installation, but will charge you $204.00 per year forever. Assume that payments are at the END of the year. Your personal interest rate is 5.00% per year, and you want to evaluate each proposal. What is the present value (PV) of the free installation?
Business
1 answer:
Vesnalui [34]3 years ago
5 0

Answer:

The second option is the cheapest.

Explanation:

Giving the following information:

The first company offers free installation and equipment, but will charge you $401.00 per year forever. The second company charges $783.00 for installation, but will charge you $204.00 per year forever. Assume that payments are at the END of the year. Your personal interest rate is 5.00% per year

To calculate the present value, we need to use the formula for a perpetual annuity:

PV= Cf/i

Cf= cash flow

i= interest rate

Option 1:

PV= 401/0.05= $8,020

Option 2:

PV= 204/0.05 + 783/1.05= $4,825.71

The second option is the cheapest.

You might be interested in
You would like to purchase one Class A share of Berkshire Hathaway through your Scottrade brokerage account. Scottrade charges a
Bumek [7]

Answer:

The current​ bid/ask spread for Berkshire Hathaway Class A​ shares is $935

Explanation:

The computation of the current bid/ask price is shown below:

The Current bid/ask price = Ask price - Bid price

                                   = $263,810 - $262,875

                                   = $935

The commission amount should be ignored in the computation part. Hence, it will not be considered as it is not relevant.

5 0
3 years ago
UPS is successful in the small package delivery market. One important reason for this success is the concept of: a. non-bureaucr
anzhelika [568]

Answer:

bureaucracy

Explanation:

According to my research on business strategies, I can say that based on the information provided within the question UPS is successful because of bureaucracy. This is a system of administration that has a clear hierarchy of authority, rigid labor, and inflexible rules and regulations, which allowed UPS to cement itself as one of the most successful delivery companies in the World.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
Race is best defined as _____.
nirvana33 [79]
A socially constructed category made up of people who share biologically transmitted traits
7 0
3 years ago
Juanita petino, a nutritionist, decided to test the effects of two breakfast cereals, kinglo and loopy, on different consumer gr
Natasha2012 [34]
The answer is experimental research
7 0
3 years ago
Select the correct answer.
Lady_Fox [76]

Answer:

A. True

Explanation:

In order to be on student council, you must already know how to lead. Student council isn't you learn to lead. It's meant to show others how to lead.

3 0
3 years ago
Read 2 more answers
Other questions:
  • For most small businesses, the primary motivation for going global is to
    15·1 answer
  • Which of the following is true of innovation? a. Innovations are less likely to come from small businesses than from big busines
    13·1 answer
  • After you are done taking notes from a speaker, you should _____.
    12·2 answers
  • A manager of a store that sells and installs spas wants to prepare a forecast for January, February, and March of next year. Her
    9·1 answer
  • Bruce is a single father with 1 child. He can work as a bagger at the local grocery store for $7 per hour up to 1,200 hours per
    10·1 answer
  • Here are incomplete financial statements for Pharoah Company. Calculate the missing amounts. PHAROAH COMPANY Balance Sheet Asset
    9·1 answer
  • In the late 1800s, how did railroad monopolies create economic hardships for farmers?A. By claiming productive land for business
    8·1 answer
  • Prompt: Write an e-mail to a government or school official in which you propose an effective solution to a problem in your commu
    11·2 answers
  • What is the process of giving keys to a third party so that they can decrypt and read sensitive information?
    12·1 answer
  • Boston consulting group (bgg) believes that the use of advanced robotics in manufacturing will?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!