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Bas_tet [7]
3 years ago
5

A dollar in hand today is worth_______(less than/more than/equivalent) a dollar to be received in the future because if you had

it now you could invest that dollar and___________ (pay/earninterest.)Of all the techniques used in finance, none is more important than the concept of time value of money (TVM), also called _________(capital budgetingcash budgetingdiscount cash flow (DCF)) analysis. Time value analysis has many applications including retirement planning, stock and bond valuation, loan amortization, and capital budgeting analysis. Time value of money uses the concept of compound interest rather than simple interest.
Business
1 answer:
Free_Kalibri [48]3 years ago
3 0

Answer:

more than

earn interest

discount cash flow (DCF)

Explanation:

The concept of future value represents the amount that a lump sum or series of cash flows will achieve after a given period when compounded at an interest rate. This means that a dollar in hand today is worth more than a dollar to be received since it can be applied to earn interest.

The time value of money, which allows us to evaluate different investments, is also known as discount cash flow (DCF).

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You work as the sales manager for a company that sells paper supplies to businesses of all sizes. Because the profit margins are
Jobisdone [24]

Answer:

Controling.

Explanation:

Analyzing the above scenario, it is possible to identify that the process of determining the reason for the higher costs and taking measures to reduce those costs is part of an organization's control management process.

It is essential that each company has a well-established control management system, as a way of positively influencing employees in the company and ensuring that all strategic activities and actions are carried out as planned to achieve organizational objectives and goals.

An effective management control process ensures that companies operate more effectively, improving organizational resource management processes, reducing costs and making management more structured and effective so that a company remains competitive and profitable in the market.

7 0
2 years ago
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan
lara31 [8.8K]

Answer:

1003

Explanation:

Given:

Period= 30 years, Loan amount= $200,000,

Payments- Monthly,

Teaser rate for first 2 years = 4%,

Annual payment cap=5%, Composite rate on reset date= 6%

Annual rate for 2 years =4%

Monthly rate will be 4/12 = 0.3333% = 0.003333

n=30years=360 months

Monthly payment for first 2 years = Pr(1+r)^n/((1+r)^n-1)

= 200000\times0.0033\times1.033^{360}/(1.033^{360}-1)

= 954.83

or by Excel function = PMT(0.003333,360,200000,0) = 954.83

Loan balance after 2 years = PV(0.003333,336,-954.83,0) = 192,812.36 or

Balance=A(1+r)^n-PMT\times(1+r)^n-1)/i

=200000(1.0033)^{24}-954.83(1+0.003333)^{24}-1)/0.003333

= 192,812.36

Composite rate is 6% but payment is capped at 5%. So new payment from year 3 is 954.83×1.05=1002.57=1003

6 0
2 years ago
Coach's agreement with Lexus to produce automobiles with Coach leather interior is an example of A. co-branding. B. architectura
nikitadnepr [17]

Answer:

CO-BRANDING

Explanation:

Also known as brand partnership, it is a marketing strategy that incorporates multiple brands on a good or service. It involves the brands of at least 2 organisations. Just like the Lexus and coach described above.

8 0
2 years ago
Georgia, a widow, has take-home pay of $1,900 a week. her disability insurance coverage replaces 60 percent of her earnings afte
scoray [572]

Georgia will receive $17,100.

If Georgia was out of work for 19 weeks she would receive 60% of her weekly pay.

In order to calculate 60% you multiply $1,900 x .6 = $1,140.

Georgia’s Disability insurance will pay $1,140 per week after a four week waiting period. She is out for 19 weeks, so with the 4 week waiting period, she will collect benefits for 15 weeks. 15 weeks x $1,140 = $17,100 total.

5 0
3 years ago
Consider this problem: Fast Auto Service provides oil and lube service for cars. It is known that the mean time taken for oil an
astraxan [27]

Answer:

The maximum time guaranteed = 19.04 minutes.

Explanation:

From the given problem data, we have:

Let Y be the random variable which follows the normal distribution.

So,

Y ~ N(u = 15, SD = 2.4

Where, u = mean and SD = Standard Deviation

Let the maximum time guaranteed is = M

So,

P (Y > M) = 0.05   equation 1

Convert this equation 1 into standard normal variable, that is,

P(Y> M) = 0.05

1 -  P(Y \leq M) = 0.05

P(Y \leq M) = 1 - 0.05

P(Y \leq M) = 0.95

P(\frac{Y-u}{SD} \leq \frac{M-u}{SD} ) = 0.95

P ( Z \leq \frac{M - 15}{2.4} )  = 0.95     Equation 2

From the equation 2, we have,

\frac{M-15}{2.4} = 1.644853627  

1.644853627 value is from using the function of Excel

( =NORSINV(0.95)) = 1.644853627

So,

M = 1.644853627 + 2.4 + 15

M = 19.04

Hence, the maximum time guaranteed = 19.04 minutes.

6 0
2 years ago
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