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SSSSS [86.1K]
3 years ago
11

You are considering buying a perpetuity contract from your insurance company that will pay you $500 annually where the payment w

ill grow by 3% each year. Using a discount rate of 9%, the most you should be willing to pay for this contract is closest to:
Business
1 answer:
miss Akunina [59]3 years ago
3 0

Answer:

Maximum Amount Payable = $8333.33

Explanation:

Perpetual Annuity Payment = $500

Growth Rate = 3%

Discount Rate = 9%

Maximum Amount Payable = Present Value of Perpetual Annuity

Present Value of Perpetual Annuity =  Perpetual Annuity Payment / (Discount rate - Growth rate)

Maximum Amount Payable = $500 / (0.09 - 0.03)

Maximum Amount Payable = $500 / 0.06

Maximum Amount Payable = $8333.33

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B

Explanation:

the company is achieving its financial and strategic objectives and whether it is an above-average industry performer.

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4 years ago
The two types of utilitarianism are _____ and _____ . primary; secondary causal; superfluous consideration; evoked proactive; re
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Answer:

The two kind of utilitarianism are act and rule

Explanation:

Utilitarianism is the form or kind of consequentialism as it rests the idea which is the result or consequence of laws, actions or policies, and determine or evaluate whether they are right or wrong.

The 2 types of utilitarianism are rule and act, where rule utilitarianism is the one which focus on the effects of kinds of actions like stealing o killing and the act utilitarianism is the one which focus on the effects of the individual actions.

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3 years ago
Winners and losers from free trade Consider the market for meekers in the imaginary economy of Meekertown. In the absence of int
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Answer:

It is true that under those circumstances there are winners and losers from trade, or in this case, more specifically from the lack of trade, because the economy of Meekertown does not engage in international trade, and as a result, the consumers have to pay $33 for meekers, instead of paying a price closer to the world average of $35. The consumers are the losers, while the domestic producers are the winners.

If Meekertown opened up to international trade, consumers would be able to buy cheaper meekers produced aborad, which means that they would be the winners while domestic producers would be the losers.

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4 years ago
Early supplier involvement (ESI) involves:
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Early supplier involvement involves in the collaboration with the suppliers and the manufacturers of the products they suggest new ideas and share their ideas in the early stage of the product

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Early supplier involvement is much important because it plays a major role in bringing the suppliers and the manufactures in line and they discuss about the product and the new ideas.

Project delivery will be more easy when the developers and the owners discuss upon the ideas and the investments in the products and it is always wiser to involve the early supplier investment so that the product will be better known to both sides.

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3 years ago
Which of the following is not included in the GDP?
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C. Non-market activity

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NX is the net exports: total exports minus imports.

The GDP value does not include non-market activities.

3 0
3 years ago
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