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3 years ago

Which of the following statements is/are FALSE, all else the same?

Business

1 answer:

xz_007 [3.2K]3 years ago

5 0

Answer:

I. Present values increase as the discount rate increases.

and

III. Present values are smaller than future values when both r and t are positive.

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A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the purchase price in each of the next

MaRussiya [10]

Answer:

a-1) Present value of the instalment option = $93.08

Present value of paying the bill immediately =$90

a2) Paying the bill immediately is the better deal

b-1) Present value of the instalment option = $88.65

b-2) Paying in instalments in this case is the better deal

Explanation:

a-1) Calculate Present value of the instalment option

The payments are spread out as follows: $25 immediately, and 25 at the end of each of the following 3 years, this is an annuity due where the present value is calculated as follows:

$Present value =PMT*\frac{[1-(1+i)^-^n]}{i}*(1+i)$

PMT = the annuity payment at the beginning of each period=$25

i = interest rate per period that would be compounded for each period

=0.05

n = number of payment periods=4

Present value = $25*\frac{[1-(1+0.05)^-^4]}{0.05}*(1+0.05)$ =$93.08

Present value of paying the bill immediately= $100 less the 10% discount= $100*0.9 = $90

a-2)Paying the bill immediately is the better deal as it has a lower cost of $90 compared to paying in instalments which a present value cost of $93.08

b1) If the payments on the 4-year instalment plan do not start for a full year, then the present value of the payment stream is calculated as follows:

$Present value =PMT*\frac{[1-(1+i)^-^n]}{i}*\frac{(1+i)}{1+1}$

= $PMT*\frac{[1-(1+i)^-^n]}{i}$

= $25*\frac{[1-(1+0.05)^-^4]}{0.05}$ = 88.65

b-2) paying in instalments in this case is the better deal as it has a lower cost of $88.65 compared to paying the bill immediately which has present value cost of $90.

4 0

3 years ago

Which of the following is a type of intellectual property?

Salsk061 [2.6K]

Answer:

house

Explanation:

3 0

2 years ago

While stockholders elect the board of directors of a corporation, the board of hires the president, vice president and other off

klemol [59]

The answer is directors.

<h3>What entity elects the board of directors for a corporation?</h3>

The corporation's stockholders elect its board of directors, but they play no other direct role in how the company is run. The board makes the important company decisions of directors.
The president of a corporation is chosen directly by its stockholders.
In addition to their duty as members of the board of directors, the officers are charged with particular duties. President As the company's chief executive officer, the president, is responsible for the following duties: Preside over board meetings. Served as the executive committee's chairman.
The promotion of the organization's work and the recruitment of resources to support its programs and services are some of the duties of board members.

While stockholders elect the board of directors of a corporation, the board of hires the president, vice president and other officers, who manage the corporation.

The answer is directors.

To learn more about The board of directors of a corporation, refer to:

brainly.com/question/21121907

#SPJ4

5 0

1 year ago

Billy owes a liquidated debt of $3000 to Rayna, his personal weight trainer. Billy sends Rayna a check for $300 on which he has

Ulleksa [173]

Answer:

False

Explanation:

The reason is that the liability can not be waived unless the lender agrees to waive off the liability which means that in this case Rayna hasn't waived off its amount receivable so the Billy owes Rayna remainder $2700 despite sending payment in full check.

6 0

4 years ago

Assume that ABCO is a U.S. multinational corporation. Its foreign subsidiaries must report income in their respective countries

Marina CMI [18]

Answer: c

Explanation:

3 0

3 years ago