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photoshop1234 [79]
3 years ago
6

David has purchased an investment that he expects to produce an annual cash flow of​ $3,000 for five years. He requires an​ 8% r

ate of return compounded annually. What is the maximum amount that David can pay and still earn the required rate of​ return?
Business
1 answer:
Inessa05 [86]3 years ago
8 0

Answer:

Explanation:

In order to find the highest amount david can pay or in other words the present value of the investment we would have to discount the cash flows

3000/1.08+3000/1.08^2+3000/1.08^3+3000/1.08^4+3000/1.08^5=11,978

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Seth is a competitive body builder. He says he has ti have his 12 oz package of protein to " feed his muscles" every day. On the
nexus9112 [7]

Answer:

1. It is perfectly inelastic

Explanation:

Elasticity of Demand is the responsiveness of demand to price change.

  • Elastic Demand > 1 ; implies demand changes proportionately more than price change
  • Inelastic Demand < 1 ; implies demand changes proportionately less than price change
  • Perfectly Elastic Demand  = ∞ ; implies demand changes infinitely to price change, so the prices are constant
  • Perfectly Inelastic Demand = 0 ; implies demand doesn't respond to price change, so quantity demanded is constant

Given : Seth body builder needs 12oz protein packet to 'feed his muscles' depicts that it is a necessity good to him. Being a necessity good, it would be demanded by Seth irrespective of price.

So, the demand is perfectly inelastic.

3 0
3 years ago
What is (are) the main problems in using a balance sheet to provide an accurate assessment of the value of a company's equity?
frez [133]

Answer:

A) Valuable assets such as the company's reputation, the quality of its work force, and the strength of its management are not captured on the balance sheet.

Explanation:

As we know that the balance sheet records the assets, liabilities and the equity of the company. Now the main problem with the balance sheet is that the valuable assets such as reputation of the company, work force quality, management strength would not captured here as it only records the monetary transactions.

Therefore the correct option is a.

3 0
2 years ago
Consider two perfectly negatively correlated risky securities, X and Y. Security X has an expected rate of return of 9% and a st
Aneli [31]

Answer:

0.41

Explanation:

The computation of the weight of security Y in the minimum variance portfolio is shown below:-

Weight of security X = Standard deviation of security Y ÷ (Sum of the standard deviation of securities)

= 39% ÷ (39% + 27%)

= 39% ÷ 66%

= 59.01%

Weight of security Y = 1 - Weight of security X

= 1 - 59.01%

= 0.41

5 0
2 years ago
Jillian is mapping her co-worker's decision-making process. she puts a few words in braces alongside a shaded rectangle. what do
Eva8 [605]
<span>The use of braces explains the meaning of the words preceding the brace. Here Jillian actually mapping her co-worker's decision-making process so the braces probably contain decisions made on some circumstances. The circumstances may be given outside the brace.</span>
7 0
3 years ago
Randal Corporation recorded the following activity for the year just ended: Proceeds from sale of property $300,000 Cash receive
andreev551 [17]

Answer: $100,000 outflow

Explanation: Investing activities refers to those activities in a  cash flow statement that are related to purchase or sale of long term assets. The sale of assets results inflow of cash and purchase of assets results in outflow of cash.

In the given case, it can be computed as follows :-

cash flow from investing activities = sale of property - purchase of equipment

                                                             = $300,000 - $400,000

                                                             = $100,000 outflow

5 0
3 years ago
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