1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
loris [4]
3 years ago
10

You have a rich aunt who wants to give you money. She offers you two choices: Choice 1: You receive $100 starting today once a y

ear every year for the rest of eternity. Choice 2: You receive $200 today and then $50 once a year starting next year for all of eternity. Assuming the interest rate
Business
1 answer:
ValentinkaMS [17]3 years ago
5 0

Answer:

Choice 1 is more profitable.

Explanation:

Giving the following information:

Choice 1:

You receive $100 starting today once a year every year for the rest of eternity.

Choice 2:

You receive $200 today and then $50 once a year starting next year for all of eternity.

<u>I will assume an interest rate of 8%</u>

The first option and second option are a perpetual annuity. To calculate the present value, we need to use the following formula:

Choice 1:

PV= Cf/i

Cf= 100

i=0.08

PV= 100/0.08= $1,250

Choice 2:

PV= 50 + 50/0.08= $825

Choice 1 is more profitable.

You might be interested in
Which of the following are required, to perform an “authenticated” scan that only targets “severity 5” vulnerabilities? (choose
Naya [18.7K]

To perform an “authenticated” scan that only targets “severity 5” vulnerabilities you require a Target host. This is further explained below.

<h3>What is Target host?</h3>

Generally, Any domain from which a request to Target is made is referred to as a host. On a website, the location is almost always the most important element.

In conclusion, You'll need a Target host if you want to run a "authenticated" scan that only looks for "severity 5" vulnerabilities.

Read more about  Target host

brainly.com/question/13051882

#SPJ1

8 0
2 years ago
Space Fuel Inc. is considering establishing a new propellant depot to provide space vehicles a refueling point in their trek to
schepotkina [342]

Answer:

NPV = $55,894.45

Explanation:

the initial outlay of the project is $200,000

the salvage value is $10,000

useful life 10 years

annual costs $9,000

annual savings $50,000

luckily there are no taxes in space

we must determine the effective interest rate in order to be able to discount the future cash flows

(1 + 0.0478/6)¹² - 1 = 9.99%

the net cash flow per year (for years 1 - 9) = $50,000 - $9,000 = $41,000

net cash flow for year 10 = $41,000 + $10,000 = $51,000

using a financial calculator, the NPV = $55,894.45

7 0
3 years ago
In an establishment that serves alcohol for on premise consumption and gets less than 50% of its gross receipts from alcohol sal
KATRIN_1 [288]

Answer:

A. True

Explanation:

As we know that the license is been provided that serves alcohol for on-premise consumption and gets less than 50% of its gross receipts from alcohol sales, a cashier can be less than 18 years as well, according to the establishment. The establishment clearly mentions that it acquires less than 50 percent of its total receipts and a cashier can be less than 18 years. The given statements are true.

7 0
4 years ago
Standard Quantities Allowed of Labor and MaterialsMiel Company produces ready-to-cook oatmeal. Each carton of oatmeal requires 1
jok3333 [9.3K]

Answer:

Part I :

1) Total amount of oats allowed = 960000*16 = 15360000 ounce

2) Total amount of labor hours allowed = 960000*.04 = 38400 Hours

<u>Part II : </u>

1) Total amount of oats allowed = 750000*17 = 12750000 ounce

2) Total amount of labor hours allowed = 750000*.04 = 30000 Hours

4 0
3 years ago
Suppose there is an increase in the number of buyers of cars and an increase in the cost of manufacturing cars. The basic graphi
xenn [34]

Option C. Suppose there is an increase in the number of buyers of cars and an increase in the cost of manufacturing cars. The basic graphing model of supply and demand predicts:  the equilibrium price of cars will increase, but the impact on the equilibrium quantity of cars cannot be determined without additional information

<h3>What is demand?</h3>

This is the term that is used to refer to the number of people that are willing to buy a product at a given wage rate.

When there is a rise in the demand of cars, there would be a rise in rhe equilibrium price of the cars.

Complete question

Suppose there is an increase in the number of buyers of cars and an increase in the cost of manufacturing cars. The basic graphing model of supply and demand predicts:

A. The equilibrium, quantity of cars will decrease, but the impact on the equilibrium price of cars cannot be determined without additional information

B. The equilibrium quantity of cars will increase, but the impact on the equilibrium price of cars cannot be determined without additional information.

C. the equilibrium price of cars will increase, but the impact on the equilibrium quantity of cars cannot be determined without additional information

D. the equilibrium price of cars will decrease, but the impact on the equilibrium quantity of cars cannot be determined without additional information

Read more on demand here:

brainly.com/question/516635

#SPJ1

5 0
2 years ago
Other questions:
  • Ford, an american car company, purchased volvo, which is based in sweden. what is this an example of? an independent agency a fo
    14·1 answer
  • Which element could help a blog become more engaging?
    14·1 answer
  • _ occur(s) in large companies that have excess resources such as equipment and employees. Organizational slack Unlimited boundar
    7·1 answer
  • To spur trade, cormoran, brithea, and asmakush decided on economic integration where there were no barriers to trade between the
    7·1 answer
  • Pandar Corp. issues 12-year, AA-rated bonds. What is the yield on one of these bonds? Disregard cross-product terms; that is, if
    14·1 answer
  • Suppose that an investor with a 5-year investment horizon is considering purchasing a 7-year 9% coupon bond selling at par. The
    6·1 answer
  • Terra is the owner of Arcadia Salon and Spa and is looking to add some new spa services. Terra interviewed her staff to get thei
    14·1 answer
  • Ray started out with one small print shop. His business has grown so much that he now has two other branches across town. Ray ha
    13·2 answers
  • Which statements are true if the particle size in a packed column used in HPLC is decreased?
    8·1 answer
  • The accounting standards state that management is responsible to evaluate the​ entity's ability to continue as a going concern
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!