Answer:
You will pay $744,680.85 for the policy
Explanation:
Step 1
Since cash flow is a perpetuity, we can derive the following expression;
P.V=C/r
where;
P.V=present value of the investment
C=cash flow
r=annual rate of return
In our case;
P.V=unknown
C=$35,000
r=4.7%=4.7/100=0.047
replacing;
P.V=35,000/0.047
P.V=744,680.8511
744,680.8511 rounded off to 2 decimal places=744,680.85
You will pay $744,680.85 for the policy
Answer:
Development
Explanation:
The product development stage is the first part of a product life cycle. This stage involves bringing out a product from a concept. It also involves the modification of a product to satisfy the customers needs.
Product development is concerned with the formulation, designing and then marketing of a new product. The main aim of a product development is to greatly improve the market share of an organization by meeting up to the various demands of potential customers.