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d1i1m1o1n [39]
3 years ago
9

You will be receiving cash flows of: $1,000 today, $2,000 at end of year 1, $4,000 at end of year

Business
1 answer:
ExtremeBDS [4]3 years ago
6 0

Answer:

Option "B" is the correct answer to the following statement.

Explanation:

Given:

Today invested amount = $1,000

1st payment(C1) = $2,000

2nd payment(C2) = $4,000

3rd payment(C3) = $6,000

Interest rate(r) = 7% = 0.07

Present value ( PV ) = ?

Computation of Present value:

Present \ value =\frac{C1}{(1+R)^1} +\frac{C2}{(1+R)^2} +\frac{C3}{(1+R)^3}\\ Here , n = 1 , 3, 5\ are \ Consicutive\\So , Present \ value =\frac{C1}{(1+R)^1} +\frac{C2}{(1+R)^3} +\frac{C3}{(1+R)^5}\\Present \ value =\frac{2,000}{(1+0.7)^1} +\frac{4,000}{(1+0.7)^3} +\frac{6,000}{(1+0.07)^5}\\Present \ value =\frac{2,000}{(1.07)^1} +\frac{4,000}{(1.07)^3} +\frac{6,000}{(1.07)^5}\\Present \ value =\frac{2,000}{1.7} +\frac{4,000}{1.225} +\frac{6,000}{1.40}\\Present \ value = 9,412.272

Total present value = $1,000 + 9412.272

= $10,412.272

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Explanation:

8 0
3 years ago
In a cost reimbursable contract, _____. the contract usually details the quality of the goods or services, the timing needed to
JulsSmile [24]

Answer:

the organization agrees to pay the contractor for the cost of performing the service or providing the goods plus a profit.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, cost reimbursable contract, etc.

In a cost reimbursable contract, the organization, which is the client agrees to pay the contractor for the cost of performing the service or providing the goods plus a profit.

This ultimately implies that, a client such as a business organization that enters into a cost reimbursable contract with another party such as a contractor, agrees to pay the contractor an agreed amount of money upon the completion or execution of the contract.

7 0
3 years ago
Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither
Readme [11.4K]

Answer:

neither

producer surplus

consumer surplus

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product

Producer surplus = price – least price the seller is willing to accept

The first scenario is neither a producer or consumer surplus because a transaction did not take place

The second scenario is a producer surplus.

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consumer surplus = $114 - $107 = $7

6 0
3 years ago
Explain the link between scarcity and each of the followin​
Leto [7]

The link between the Scarcity and choice is the study of how individuals and society choose to allocate scarce resources.

<h3>What is the Meaning of Scarcity?</h3>

Scarcity refers to the insufficient or the shortage of the resources with the individual or in the particular nation. For Example In any Industry there is the shortage of the skilled workers.

The complete question is attached below.

The link between the Scarcity and the Opportunity Cost is that it has the direct implication on the scarcity. In decision making process, one must has to sacrifice the opportunity cost of that action.

The link between the Scarcity and competition is due to the Lack of resources which forces people to compete for the limited resources that are accessible because there aren't enough to satisfy everyone's wants.

Additionally, people would compete for the rationing tool, such as money, whatever it may be.

Learn more about Scarcity here:

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8 0
2 years ago
There is a trend in the United States toward rediscovering the flavor of regional cooking and the use of locally grown ingredien
Llana [10]

Answer:

Lifestyles

Explanation:

There are many reasons for this market to grow over the years, for example: Farmers' markets provide low-risk entry points for new or beginning farmers; educational opportunities for the general public; and increased access to fresh food for food-insecure community members.

8 0
3 years ago
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