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bonufazy [111]
3 years ago
8

Prizes are often not "worth" as much as claimed. Place a value on a prize of $5,000,000 that is to be received in equal annual p

ayments over the next 20 years, with the first payment beginning today. Assume an interest rate of 7 percent over the 20-year period.A) $2,212,652B) $2,648,504C) $2,833,899D) $2,950,567A
Business
1 answer:
denis23 [38]3 years ago
6 0

Answer:

C) $2,833,899

Explanation:

This is an "annuity due " type of question, it is asking for  the Present value (PV) or present worth of an annually recurring equal payment; PMT.

First, divide 5,000,000 by 20 to get equal payment = 250,000

Using a financial calculator on "BGN" mode, input the following;

N= 20

I/Y = 7%

PMT = 250,000

FV = 0

then compute present value; CPT PV = 2,833,898.81

Therefore, it will be worth $2,833,899

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Answer: Option B

                               

Explanation: In simple words, theory X refers to the type of management style under which the manager have a perception that his or her subordinates are incompetent employees with less motivation  and irresponsible nature.

These managers strictly monitors their subordinates and use aggressive style of management to get work done. Under such management style the delegation of authority and decentralization does not takes place.

Generally, the relationship of such managers with their subordinates are very formal and remains occupied within the firm. Under such management style all the employees have to work by following a predetermined framework and there is very less flexibility in the job.

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3 years ago
Which of the following scenarios would indicate that a nation's economy is entering the recovery phase of the business cycle?
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3 years ago
Can someone help me please? I attached the question THANKS
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Press a standard key on the keyboard.

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Explanation:

7 0
3 years ago
Read 2 more answers
Which of the following is consistent with the CAPM and efficient capital markets? A) A security with a beta of 1 has a return la
Rus_ich [418]

A security with a beta of 1 has a return last year of 8% when the market has a return of 12%.

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<u>Explanation:</u>

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<u>Answer:</u>

Mid - Range

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