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pochemuha
3 years ago
10

You are comparing two investment options. The cost to invest in either option is the same today. Both options will provide you w

ith $20,000 of income. Option A pays five annual payments starting with $8,000 the first year followed by four annual payments of $3,000 each. Option B pays five annual payments of $4,000 each. Which one of the following statements is correct given these two investment options?
a. Option A is preferable because it is an annuity due.
b. Both options are of equal value given that they both provide $20,000 of income.
c. Option A is the better choice of the two given any positive rate of return.
d. Option B has a lower future value at year 5 than option A given a zero rate of return.
e. Option B has a higher present value than option A given a positive rate of return.
Business
2 answers:
sammy [17]3 years ago
7 0

Answer:C. Option A is the better choice of the two given any positive rate of return.

Explanation:An investment is an asset bought in order to gain or generate returns from it over time. Any investment is expected to give higher returns when compared to the initial money put into the business.

The rate of return of an investment is the rate at which the investment generates revenue or net income,

Option A is better compared to option B as it gives a higher rate of income in the first initial payment,this higher first payment will enable the investor to utilize the money for something tangible compared with Option B which gives $4000 first net income.

Bad White [126]3 years ago
5 0

Answer:

Option A is the better choice of the two given any positive rate of return.

Explanation:

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Describe how Kabbage might evaluate the existence and completeness of an applicant’s revenue transactions.
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Explanation:

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3 0
2 years ago
Sophie made pies and sold them from her food trailer at businesses. This is an example of a(n)A. direct marketing channel.B. dis
BigorU [14]

Answer:

Letter A is correct.<u> Direct marketing channel.</u>

Explanation:

A distribution channel is the most effective way a company decides to get its products to the end consumer at the right place at the right time. Intermediaries or business chains can be used to get the good to the customer. Some examples of distribution channels are: manufacturer, internet, retailers and shipping centers. Distribution channels can be direct or indirect.

In the case of the above question, Sophie's sales occurred through a direct distribution marketing channel, because this is configured as the one where the consumer can purchase the product or service direct from the manufacturer, there are no intermediaries for the product to reach the final customer. And proper transportation or logistics teams are also used to effectively deliver directly.

6 0
3 years ago
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Answer:

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Explanation:

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Price-to-earnings ratio ( P/E ratio )= Market price per share / Earnings per share

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Therefore, the company's expected market price per share After the repurchase=$ 8.14 x 2.91 = $23.68

7 0
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Answer:

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