Answer:
False, jobs requiring a higher level of education have more benefits than jobs that require minimal education.
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Answer:
The value of all future payments discounted by the interest rate
Explanation:
Since the purchase of the asset is by installments to be paid in the future. The present value to be recognized is the sum of the future payments discounted at the predetermined interest rate.
The first payment due now will not have to be discounted but future payments will have to be discounted to ascertain the present value of the asset to be recognized in the balance sheet.
Answer:
NPV= 1,036.16
Explanation:
Giving the following information:
Initial investment= $9,000
Cash flows= $2,700 at the end of each of the next four years.
Interest rate= 3%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 2,700/1.03= 2,621.36
Cf2= 2,700/1.03^2= 2,545
Cf3= 2,700/1.03^3= 2,470.88
Cf4= 2,700/1.03^4= 2,398.92
Total= 10,036.16
NPV= -9,000 + 10,036.16
NPV= 1,036.16
Answer:
The most sensible position is to understand that theory, while not practical in itself, can be immensely helpful when dealing with pratical matters.
This is because theory gives you a sound conceptual foundation that can be used to analyze the practical context, and approach it with the best possible practical solutions.
Without theory, managers have to rely too much on intuition, which can often fail.