Answer:
To evaluate the choice, we have to calculate the present value of future cash flows and compare it with the cost. We use the following formula
present value = C × [ 
]
where
C = yearly payments = 75000
i = interest rate = 8%
n = no. of years = 15
put the given values in above equation, we get
Present value = 75000 ×8.559478688
= 641,961
Since the present value of cash flow 641,961 is less than the cost 750,000, I would not recommend it.
If Interest rate = 5%, then:
Do the same procedure as above but take i=5%
Present value = 75000 × 10.37965804
= 778,474
Since the present value of future cash flows 778,474 is greater than the cost 750,000, I would recommend it.
A shortage occurs when demand exceeds supply – in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product. As a result, businesses may hold back supply to stimulate demand.
She has to be skillful in business and design
90000$:100%=x$:80%, x*100=90000*80, x=72000$
The Martin family spends 80% of annual income which is 72000$ and their autonomous consumption spending is 10000$.
So Martin's family annual consumer spending is 72000$+10000$=82000$.
Answer:
limit supplier bargaining power.
Explanation:
Switching costs from industry refers to cost of moving from that industry to another industry.
If these costs are high, industry members would feel pressure to stay in the industry to avoid the high switching costs. So, they would tend to stick to industry. Members' this tendency to stay in industry irrespective of issues, is likely to reduce their bargaining power in the market.
