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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.

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Scarborough Faire Herb Farm is a small company specializing in selling organic fresh herbs, teas, and herbal crafts. Currently,
kirza4 [7]

Answer:

Sales This year will be $180,800

Explanation:

Total Sales Last Year = $160,000

Growth rate of sales = 13%

Sales This year = Total Sales last year x (1+Growth rate)

Sales This year = $160,000 x (1+13%)

Sales This year = $160,000 x (1+0.13)

Sales This year = $160,000 x 1.13

Sales This year = $180,800

4 0
3 years ago
i have a friend i think of as my brother and i changed the emoji on messenger to the teddy bear emoji and his nickname to 'My Te
olga2289 [7]

Answer:

oh wow that's nice I think... XDD

5 0
3 years ago
Read 2 more answers
Ray is a shareholder of Small Biz Company (SBC). When the directors fail to undertake an action to redress a wrong suffered by S
julsineya [31]

Ray is a shareholder of a small company. When the director falls to undertake an action it falls under derivative suit.

Explanation:

  • Derivative suit is referred to as a law suit that is brought by the shareholder in behalf of the company against the third party.
  • If in a company the employees, the directors as well as the officers are not ready to file a complain against the third party then the shareholder has the right to file a complaint against the third party.
  • Derivative suit is normally filed by the shareholder when there is a mismanagement in the company. To stop the illegal work this action is being taken.  
4 0
3 years ago
While waiting in line to buy two tacos at 75 cents each and a medium drink for 80 cents, Jordan notices that the restaurant has
puteri [66]

Answer:

The correct answer is $0,20.

Explanation:

The marginal cost, at each level of concrete production, indicates the costs we incurred in carrying out said production. Basically, it is an indicator that will allow us and help to make decisions regarding the preparation and production of goods and services.

In the previous case, the cost of buying two tacos for $ 75 each plus a $ 80 bedid is as follows:  

Tacos: $ 75 * 2 = $ 1,50

Drink: $ 80

TOTAL = 2,30

For its part, the second option is priced at $ 2,50

Subtracting the results, the marginal cost is defined as follows:

$ 2,50 - $ 2,30 = $ 0,20

6 0
3 years ago
What is the main challenge of career planning in changing times?
White raven [17]

The answer is option B. The main challenge of career planning in changing times is that you need to revise your plans often.

The world we live in is dynamic. New inventions, new technology, new methods of doing things always come up with time.

Because of this, when making a career plan, one must be fully aware that the process is not static. That is, changes would occur and as such, you have to revise your plans often so that it is in line with what is obtainable at the time.

<em>Read more on career planning here: brainly.com/question/6457203?referrer=searchResults</em>

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3 years ago
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