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Karolina [17]
3 years ago
9

What is the present value of a $400 perpetuity if the interest rate is 7%? If interest rates doubled to 14%, what would its pres

ent value be? Round your answers to the nearest cent.
Business
1 answer:
s2008m [1.1K]3 years ago
8 0

Answer:

present value = $57.14.28

present value = $2857.13

Explanation:

given data

perpetuity value  = $400

interest rate = 7% = 0.07

interest rate = 14% = 0.14

to find out

What is the present value

solution

we get her present value that is express as

present value = \frac{perpetuity}{rate}   ............1

put here value for rate 7% and 14%

present value = \frac{400}{0.07}

present value = $57.14.28

and

present value = \frac{400}{0.14}

present value = $2857.13

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An example of business-to-business sales is selling ________.
uysha [10]

Answer:

a) grocery items to grocery stores

Explanation:

Business -to -business (B2B) sales occur between different companies unlike Business to Consumer (B2C) sales that are between a company and a individual customers.  To answer this question, you identify an option that shows that a wholesaler sells goods to a retailer who then sells to a customer which is supply of grocery items to grocery stores.

'Automobile insurance to a pet shop owner' and 'evening gowns to Oscar award nominees' are B2C. And 'a washing machine to a theatre company' is irrelevant

5 0
3 years ago
When making additional business decisions management should consider?
Delvig [45]
Maybe how long you’re willing to be committed to that certain job or your goals in life so they are able to take you seriously.

This is just a guess btw but I hope this gave you an idea. :)
8 0
3 years ago
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.Sele
sergiy2304 [10]

Answer:

1) It is a price floor which is binding as employeer cannot hire teenagers willing to work below 24 dollars per hour

2) it is a price celling and is biding as the current equilibrium price is 3.00 There will be shortage as demand will icnrease for the lower price but supply decrease as it is not as profitable

3) it is a price floor which is also binding as the equilibrium is at 3 dollars the supplier will have to increase price and sales volume will be lower as demand will drop

Explanation:

4 0
3 years ago
Gibson company began august with 200 units of product br having a unit cost of $8 in inventory. relevant information is listed a
In-s [12.5K]

ANSWER: To calculate the gross profit for the month of August, Gibson will have to find out the sales in his company. Gibson had a opening stock of 200 units of products valuing $8 per unit. The total value of the stock available at the opening of the month is $8 x 200 units = $1,600. If he uses the average cost method to calculate the inventory cost, he will need the opening stock and the production done in the month of August. This will give him the figure which will show his entire stock which were available for sale in the month.

Let's assume the entire stock produced in the month of August to be 'x', so the total stock available for sale was '$1,600+x'. This amount needs to be subtracted by the closing stock of the month to get the actual value of sales that has happened during the month of August. So, dividing the actual value of sales by the production cost of the sold number of units will give Gibson the gross profit for the month of August.

7 0
3 years ago
Purple Turtle Group is analyzing a project with the following cash flows: Year Cash Flow 0 -$795,000 1 $375,000 2 $-500,000 3 $6
Phantasy [73]

Answer:

MIRR = 4.32%

Explanation:

year           cash flow

0               -$795,000

1                 $375,000

2               -$500,000

3                $600,000

4                $400,000

Since there are 2 cash outflows, the IRR calculation would result in two different answers (1 for every cash outflow), that is why we use the MIRR function in excel.

=MIRR (cash flows, finance rate, reinvestment rate)

=MIRR (-795000 to 400000, 5.5%, 5.5%)

Since we are only given one interest rate, we will use it as our finance rate and our reinvestment rate.

MIRR = 4.32%

6 0
3 years ago
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