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3 years ago

if interest rates are positive, the future value of a given sum will always be less than the present value

Business

1 answer:

Alexeev081 [22]3 years ago

5 0

Answer:

False. If interest rates are positive, the future value will always be more than the present value.

Explanation:

Future value is given by:

FV = PV $(1 + i)^{n}$

wherein, FV= Future Value

PV= Present Value

i = rate of interest per period

n = number of periods

So, if interest rates are positive, the current investment shall be compounded to arrive at Future value which would turn out to be more than the present value.

For example, $ 100 invested today at 10% per annum, after an year would yield $110. This represents future value.

In case future value is provided as 110$ and rate of interest is given as 10% per annum, such future value discounted at 10% would give $100 today which represents the present value.

Thus, Future value will always be more than the present value if interest rates are positive.

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3 years ago

Read 2 more answers

Billie Bradford worked for the Kentucky Department of Community Based Services (DCBS). One of Bradford’s co-workers, Lisa Stande

ololo11 [35]

Answer:

1. sexual

2. gender

3. quid pro quo

4. a) was not; b) did not

5. pattern

6. a) severe b) alter c) abusive

7. yes

8. yes

Explanation:

Stander´s conduct was sexually offensive because the coworker repeatedly complained about the situation. Also you can see a pattern because Stander´s behavior cannot be counted as a single event, but occured on various occasions.

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3 years ago

All business strategies seek to gain competitive advantage. a. True b. False

insens350 [35]

True.............: :3

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3 years ago

Van Den Borsh Corp. has annual sales of $68,735,000, an average inventory level of $15,012,000, and average accounts receivable

Romashka-Z-Leto [24]

Answer:

The answer is d. -32 days.

Explanation:

*The before change cash conversion cycle = Days of inventory outstanding + Days of receivables outstanding - Days of payable outstanding.

in which:

Days of inventory outstanding = Average inventory / Cost of good sold x 365 = ( 15,012,000 / ( 68,735,000 x 0.85) ) x 365 = 94 days

Days of receivables outstanding = Average Receivables / Revenue x 365 = ( 10,008,000 / 68,735,000 x 365 = 53 days

Days of payable = 30 days

=> Before change cash conversion cycle = 117 days.

* The after-change cash conversion cycle is calculated with the same formula, however with estimated changes be applied in the formula as followed:

Days of inventory outstanding = Average inventory / Cost of good sold x 365 = ( (15,012,000 - 1,946,000) / ( 68,735,000 x 0.85) ) x 365 = 82 days

Days of receivables outstanding = Average Receivables / Revenue x 365 = ( (10,008,000 - 1,946,000) / 68,735,000 x 365 = 43 days

Days of payable = 40 days

=> After-change cash conversion cycle = 82 + 43 - 40 = 85 days

=> Net change is 85 - 117 = -32 days

6 0

3 years ago

Is the statement below true or false? ▼ True False . (Select from the drop-down menu.) The cash surplus can be used for a var

nlexa [21]

Answer:

(A) The cash surplus can be used for a variety of purposes. In the short-term, they may replace their car, buy better furniture, or more quickly pay off their home. TRUE

(B)Alternatively, they may purchase stocks and bonds, or increase their savings for future needs. TRUE

(C) Investments in the stock market are generally designed to increase an individual's future wealth, the purchase of bonds typically allows one to at least retain their purchasing power, while investment in savings accounts provide liquidity. FALSE

Explanation:

(A) The currency can be used to anything he owner wants.

(B) Correct, the ecnomics always define that a person after receiving his income has only two option available. It can used in consumer goods. Or it can saved to invest

(C) The reason the stock and bonds exist is to raise fund for companys whichyield a return. The company takes the most benefit from this system as it would be difficult to convince a single peroson to invest a large amount in his business. Through sotck it can ask for fewer amount to more people but, this people will receive an income but it won't become rich for a couple shares.

As this part is not true, then the whole sentence must be catalogate as false.

5 0

3 years ago