The Discount rate reflects the opportunity costs of spending funds now versus achieving a return through another investment, as well as the risks associated with not receiving returns until a later time.
Explanation:
The discount rate relates to the interest rates on loans that the Federal Reserve Bank borrows from central banks and financial institutions through the commercial bank loan mechanism.
The rate of barriers, financial assets and discount rates are all equal. The next best potential investment option with a comparable risk profile wins the rate of returns. The word ' opportunity expense' is a clear and generic concept that can be used any day of the day.
Answer:
$714,975
Explanation:
Data provided in the question:
Annual return = $150,000
Time, n = 6 years
Annual return, r = 7% = 0.07
Now,
Amount willing to pay for the project
= Present value of annual cash flows discounted at 7%
= $150,000 × [ (1 - (1 + r)⁻ⁿ ) ÷ r ]
= $150,000 × [ (1 - (1 + 0.07 )⁻⁶ ) ÷ 0.07 ]
= $150,000 × 4.7665
= $714,975
Answer:
Change in an organization leads to many positive aspects – that lead to retaining a competitive edge and also remaining relevant in your business area. Change encourages innovation, develops skills, develops staff and leads to better business opportunities and improves staff morale
hope this helped you
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Answer:
c. economic success was available to anyone who worked hard.
Explanation:
In the late nineteenth-century (the year subsequent to the civil war 1865 to 1900)
The american society didn't not have a caste or royal society with nobles or lord like English, French or Germans did.
They were all under the impression that the american dream could be ahcieve with hard work besides, pretty much all the people living in the US during that time were inmigrants or sons of inmigrants thus, there wans't an stablished order all was here for the taken.
Answer:
The stated annual interest rate offered by this account is 41.42%.
Explanation:
The stated annual interest rate, r on the saving account can be determined as follows :
Pv = - $1
n = 4 × 2= 8
pmt = $ 0
p/yr = 2
Fv = $4
r = ?
Using a financial calculator the nominal rate,r compounded semi-annual is 37.8414 %
Then use the financial calculator to convert norminal rate to annual rate as follows :
37.8414 % Shift NOM%
P/YR 2
Shift EFF% 41.4213 or 41.42%
