All categories

3 years ago

Which cash flow would you rather pay, $425 today or $500 in two years if interest rates are 10 percent? Why?

Business

1 answer:

DerKrebs [107]3 years ago

7 0

Answer:

Explanation:

The main goal is to compare these two based on the same terms; present values. Find the present value of $500 today by discounting it using 10% interest rate over two years.

PV = FV/ (1+r)^n

where FV = Future value = $500

r = discount rate = 10% or 0.10 as a decimal

n = total duration of investment = 2

PV = $500/(1+0.10)^2

PV = $500/1.21

PV = $413.22

Since you are basing the decision on what you would rather pay, you would want a lower pay amount. The $425 is already in its present value terms and it is more expensive. Therefore, you would prefer to pay $500 in two years.

You might be interested in

The operations of Knickers Corporation are divided into the Pacers division and the Bulls division. Projections for the next yea

Dominik [7]

Answer:

c.$36,750

Explanation:

If Bulls Division were dropped, then the total segment margin would be $147,000 and the total common cost would be $110,250, Then:

Operating income = Segment margin - Total cost

= $147,000 - $110,250

= $36,750

Therefore, The Operating income for Knickers Corporation as a whole if the Bulls division were dropped would be $36,750.

4 0

3 years ago

In _____, members control decisions about and execution of a complete range of tasks-acquiring raw materials and performing oper

Semenov [28]

In autonomous, members control decisions about and execution of a complete range of tasks-acquiring raw materials and performing operations, quality control, maintenance, and shipping.

A team may be a work group composed of multinational members whose activities maintenance multiple countries; teams have successfully cultural, geographic, and managerial to team effectiveness.

Task specialist means an individual assigned by the operator or a 3rd party, or acting as an undertaking, who performs tasks on the bottom directly related to a specialized task shipping or performs specialized tasks on board or from the aircraft. Among the trends that are occurring in today's high-performance work systems are reliance on knowledge workers, empowerment of employees to form decisions, and therefore the use of teamwork.

A group could be a collection of people who coordinate their efforts, while a team may be a group of individuals who share a typical goal. While similar, the 2 are different when it involves decision-making and teamwork.

A v agent (sometimes called an intelligent agent (IVA), could be a software program that uses scripted rules and, increasingly, applications to supply automated service or guidance to humans.

Types of labor means occupational categories of work that include a group of job functions requiring the performance of a typical set of tasks and may include several jobs. It refers to a broad group of jobs and that have a standard set of labor tasks and functions.

learn more about maintenance: brainly.com/question/13110766

#SPJ4

6 0

1 year ago

Teams have better communication than other workers because they get to ______. A. Know each other better b. Attend communication

nadya68 [22]

A. Know each other better

Team refers to a group of people who come together to carry out interdependent task whilst also accomplishing a common mission or specific objective.

Team comprises individuals or employees who have complementary skills, knowledge and experience needed to execute a project successfully.

When a person is working in a team, he or she has the privilege of interacting with other team members hence create performance and strengthen the level of relationship amongst them.

It therefore means that teams have better communication than other workers because they get to know each other better in the course carrying out their duties.

learn more at : brainly.com/question/19724748

7 0

2 years ago

Assume F&S offers a deal whereby enrolling in a new membership for $700 provides a year of unlimited access to facilities an

barxatty [35]

Answer:

a. There are two separate performance obligations in the contract. Gym membership is one performance obligation and the providing 25% discount on yoga classes is another performance obligation.

b. The standalone selling price of annual membership is $720. Therefore, F&S will allocate $28*((700*(30/720+30))$ of 700 contract price to the discount voucher on yoga course and the remaining $672 will be allocated to membership.

C. solution is in the image attached.

Explanation:

b. F&S offers a 10% discount on yoga classes to all customers as part of promotional strategy. Therefore a 25% discount voucher provides a customer with an incremental value of 15% (25%-10%). Thus, the estimated stand alone selling price of the discount voucher provided by F&S is $30 ($500 * 15% incremental discount * 40% likelihood of the vouchers being redeemed).

8 0

3 years ago

Nascar redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. this is an examp

olga nikolaevna [1]

This would not be psychographic segmentation, as segmenting by gender would be demographic

4 0

3 years ago