Answer:
Terminal value
= 500(1+0.12)3 + 500(1+0.12)2 + 500(1+0.12)1+ 500(1+0.12)0
= 500(1.12)3 + 500(1.12)2 + 500(1.12)1 + 500(1.12)0
= 702.464 + 627.2 + 560 + 500
= $2,389.66
The correct answer is E
Explanation:
Terminal value is a function of number of years cashflow for each year can be re-invested at the appropriate discount rate. The cashflow for year 1 can be re-invested for 3 years since the life of the project is 4 years. cashflow for year 2 can be re-invested for 2 years, cashflow for year 3 can be re-invested for 1 year and cashflow for year 4 can be re-invested for 0 year.
Mungo purchases disability income insurance. the benefit is a payment of $2000 per month during qualifying periods of disability the disability insurance premium is Occupation, Benefit Period or Tenure, Health, Elimination Period or the Waiting Period, Policy Provisions if any.
A length of incapacity is a non-stop time frame throughout which a man or woman is below a disability as defined by segment 21 of the Social security Act. there may be no restriction on what number of hours you could work on SSI, alternatively, a restriction on how a lot you can make in a month.
A character in 2022, you need to be making less than $841 of countable earnings per month and feature much less than $2,000 in belongings to qualify. For a pair, the limit is $3,000.A closed duration of incapacity is the time period between the onset of incapacity and the date whilst a claimant is bodily able to return to work performing a significant gainful hobby. Calculating gain payment quantities. Your Weekly benefit quantity WBA relies upon for your annual income.
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Answer:
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Answer:
(A). It is given that the production function is 
. All the variables are in per workers terms. Like y) is output per worker and lu is the capital-labor ratio.
The Depreciation rate is 
= 0.04 and the Savings rate is 
= 0.2
a) At steady-state the change in capital is zero. The calculation of capital-labor ratio given steady state is as follows:
Δk = 0
Thus, the steady-state value of the capital-labor ratio is
(b) to calculate consumption per worker, first calculate the output per worker and then calculate the consumption per worker. The calculations are as follows:
The output per worker is 20
The calculation of steady-state value of the consumption per worker is as follows
C= (1—s) y
C = (1— 0.2)20
C= 0.8 x 20
C = 16
Thus, the consumption per worker at the steady state is 16
Answer:
Eskom is the electricity provider of South Africa and is a monopoly because it is the only company allowed to provide power.
The disadvantages of Eskom being a monopoly are:
1. Higher prices for Customers
Because Eskom is a monopoly and does not compete with other utility companies, it can charge higher prices as there is no alternative.
2. Less Productive efficiency.
There is no competition so Eskom does not see the need to become more efficient and produce electricity better because they don't have to compete with anyone to improve their efficiency so that customers are not taken from them.
3. Less willingness to cut costs
Eskom might have high costs which makes it expensive to run but they won't bother cutting these costs because as the only provider, there is no need to cut costs to improve profitability if you can just increase prices instead.
4. Less incentive to invest in new technology
Again there is no need to compete so Eskom will not see much of a need to invest in technology which would give it an edge over competitors because there simply aren't any competitors.
5. Consumers have less choice.
Eskom is the only producer so South Africans can't simply switch to another provider. They have no choice but to accept Eskom.
