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Cloud [144]
3 years ago
14

What’s the present value of a $900 annuity payment over five years if interest rates are 8 percent? (Do not round intermediate c

alculations and round your final answer to 2 decimal places.)
Business
1 answer:
MAXImum [283]3 years ago
6 0

Answer:

$3,593.44

Explanation:

The present value (P) of an annuity payment (A) at an annual rate 'r', compounded annually over of period of 't' years, is given by:

P=A*\frac{1-(1+r)^{-t}}{r}

If payments are $900 each at an 8 percent rate for five years, the present value is:

P=900*\frac{1-(1+0.08)^{-5}}{0.08}\\P=\$3,593.44

The present value of the annuity payment is $3,593.44

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Suppose a firm estimates its WACC to be 10%. Should the WACC be used to evaluate all of its potential projects, even if they var
Mademuasel [1]

Answer:

The WACC will be 10% for average risk

below when the risk is low

and above 10% when the risk is higher than average

as the cost of capital (required return from the stockholders) will increase pushing the WACC higher

Explanation:

As the WACC is composed by the cost of debt and the cost of equity a higher risk will require a better return for the investor thus, the equity proportion that determinates the WACC will change along the project risk.

6 0
3 years ago
The price of ______ goods is a determinant of demand.
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Generally, the price of <u>other goods</u> is an important determinant of demand for a product.

<h3>What are the determinants of demand? </h3>

The determining factor for demand level of a product includes changes in income, prices of related goods, consumer expectations, consumer tastes etc.

Therefore, the price of <u>other goods</u> is an important determinant of demand for a product.

Read more about determinants of demand

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1 year ago
Match each of the following contract principles to the statement that best fits it: A. bargained-for exchange of value to the pa
AnnZ [28]

Answer:D.both parties to the contract agree on the contract terms

A.bargained-for exchange of value to the parties

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D A C B 4. Agreement

8 0
3 years ago
What are the profound and philosophical goals and benefits of a modern industrial society, according to Frederick Winslow Taylor
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He developed the rational organization of work, a tool for researching human labor conditions, such as division of labor, specialization, standardization, supervision, salary incentives, etc., whose aim was to analyze how such factors influence productivity and the quality with which a worker perceives and performs his work.

The benefits of Taylor's management model were reduced working hours, perceived employee appreciation, reduced costs, improved organizational environment, etc.

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<h3>Skin antisepsis kits</h3>

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6 0
1 year ago
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