1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sergio [31]
3 years ago
8

Bryant Investments is putting out a new product. The product will pay out $32,000 in the first year, and after that the payouts

will grow by an annual rate of 2.75 percent forever. If you can invest the cash flows at 7.25 percent, how much will you be willing to pay for this perpetuity? (Round to the nearest dollar.)
Business
1 answer:
arsen [322]3 years ago
8 0

Answer:

Present Value= $711,111.11

Explanation:

Giving the following information:

Cash flow= $32,000

Growth rate= 2.75 percent forever.

Interest rate= 7.25 percent

To calculate the present value, we need to use the following formula for a perpetual annuity with growing rate:

PV= Cf/ (i - g)

g= growth rate

i= interest rate

PV= 32,000/ (0.0725 - 0.0275)

PV= $711,111.11

You might be interested in
Which of the following is an example of successive approximation
nadya68 [22]
Giving positive reinforcement when a student comes close to what you wanted 
5 0
3 years ago
Auto company engineers want technical terms such as limited slip differential used in car ads. ad execs, on the other hand, don'
sp2606 [1]

The cause of their disagreement is "Language".

Language can be a hindrance when distinctive words and expressions mean diverse things to various gatherings of people. For this situation, it is likely the designers think the specialized terms add importance to the advertisements, while the promotion individuals surmise that they are scary and confounding. The majority of this focuses to the possibility that Language is the correspondence hindrance here– similar words mean distinctive things to various people– making "Language" the right reaction. Feeling squares data when solid emotions mutilate the impression of the beneficiary. Particular discernment is the one-sided view of actualities with respect to a collector. Sexual orientation mutilates correspondence when guys and females neglect to value each other's perspective.

5 0
3 years ago
According to your lecture notes, which professional sports league has the highest average fan cost index?
melamori03 [73]
<span>While all professional sport seem to have a rising fan cost index the NFL has the highest with a fan cost index of $473 per fan. Making it more than double the average fan cost of the MLB and about $100 more than the NBA and NHL.</span>
3 0
3 years ago
Which of the following is NOT a factor that favors effective team behavior? Close physical layout of team members Leadership tha
soldi70 [24.7K]

Answer:

Individual rewards for contributions to the team

Explanation:

A team should share rewards among themselves not to individuals, because effective teams are made of collaborators not competitors. By giving individual rewards for contributions to the team it reduces how effective the team behavior is.

For example, if a particular team is giving certain rights over others, there may begin to exist a competitive spirit amongst the team.

5 0
3 years ago
If you are reading a web page about a particular topic and see related advertisements appear along the side of the page, do you
suter [353]

Answer:

Yes.I do consider this invasion of privacy except i gave a consent to the website owner to use my data.

Explanation:

6 0
3 years ago
Other questions:
  • Because of uncertainty about future inflation, the union devotes a large quantity of resources to monitoring inflation indicator
    13·1 answer
  • Joanie takes a $6000 loan to pay for her car. The annual interest rate on the loan is $12%. She makes no payments for 4 years, b
    8·1 answer
  • Which of the following statements is TRUE of employee empowerment? Question 11 options: Jobs must be designed to give employees
    15·1 answer
  • Suppose there are only two goods in the world, x and y. Assume the consumer has spent all their money so they are on their budge
    11·1 answer
  • L Corporation produces and sells 15,300 units of Product X each month. The selling price of Product X is $23 per unit, and varia
    7·1 answer
  • If a payback period for a project is greater than its expected useful life, the project's return will always exceed the company'
    13·1 answer
  • All of the following are true about time series methods EXCEPT a. they discover a pattern in historical data and project it into
    14·1 answer
  • Suppose that the U.S. government deficit​ decreases, causing interest rates in the United States to fall relative to those in th
    14·1 answer
  • Sarah started working this year. She is single with no children and hasn't earned much money. Money has been taken out of each p
    11·1 answer
  • Agent joh rogers is planning a formal marketing/sales event and has decided to place an adbertisment in the locla paper. what di
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!