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Marta_Voda [28]
3 years ago
5

Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near ter

m. He anticipates his first annual cash flow from the technology to be $180,000, received two years from today. Subsequent annual cash flows will grow at 4 percent in perpetuity. What is the value today of the technology if the discount rate is 11 percent
Business
1 answer:
yuradex [85]3 years ago
8 0

Answer:

the present value for today is $2,316,602

Explanation:

The computation of the technology value today is shown below:

Present value of the technology is

= (First annual cash flow arisen from the technology) ÷ ( discount rate - growth rate) ÷ (1 + discount rate)

= ($180,000) ÷ (11% - 4%) ÷ (1 + 0.11)

= $2,316,602

Hence, the present value for today is $2,316,602

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The narrowest definition of the money supply (M1) includes:
fenix001 [56]

Answer:

c. cash, checking account balances, and travelers' checks.

Explanation:

Money Supply is the concept that means the amount of the liquid financial products and total currency in the market or economy. It is regulated the macro-economically by the monetary policy. So, there are types of measures of money supply or stock:

-M0: narrowly, it means the hard currency in circulation

-MB: it equals M0+ the hard currency which are not technically in circulation and in bank reserves.

-M1: it is the most common one and equals M0 plus checking accounts plus travelers’ checks and other checkable deposits.

-M2: covers M1 and saving accounts and CDs.

-M3: it surrounds the larger deposits.

-MZM: finally, this indicates the money market deposits.

That’s why we could notice that M1 narrowly means the cash, checking account and travelers’ checks.

5 0
4 years ago
The President asks Congress to approve a budget in which individual income taxes are raised by 5%. Explain how this could affect
bekas [8.4K]

Answer:

With no budget, Congress must pass a continuing resolution to fund the government temporarily. ... If Congress can't agree on 12 separate appropriations bills, it can pass an Omnibus bill that includes multiple funding areas. If the President signs that, the budget becomes law and goes into effect.

Explanation:

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8 0
3 years ago
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Why is real GDP a more accurate measure of an economy's production than nominal GDP? Nominal GDP is adjusted for the effects of
ad-work [718]

Answer:

Real GDP is not influenced by price changes, but nominal GDP is.

Explanation:

Real gross domestic product (Real GDP) is a measure of gross domestic product "in volume", that is, measured at constant prices. Changes in GDP linked to price variations (inflation or fall in prices) are thus neutralized, which allows a measure of economic growth.  

Real GDP is only used in practice to measure GDP growth from year to year, with nominal GDP remaining the benchmark measure for long-term data.

4 0
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The marginal benefit to society of reducing pollution declines with increases in pollution abatement because of the law of
damaskus [11]

Answer:

diminishing marginal utility

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What is the real value of $1,000 if the GDP price index is 125?
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The answer if the gdp price index is 125 is c
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