Answer:
The lum-sum must equal $5,369,009.59
Explanation:
Giving the following information:
First option:
Annual payment= $420,000
Number of periods= 25 years
Interest rate= 6%
<u>First, we need to calculate the future value of the first option using the following formula:</u>
<u></u>
<u>FV= {A*[(1+i)^n-1]}/i</u>
A= annual deposit
FV= {420,000*[(1.06^25) - 1]} / 0.06
FV= $23,043,095.04
<u>Now, to determine the lump-sum to receive today, we need to determine the present worth of the annuity:</u>
PV= FV / (1 + i)^n
PV= 23,043,095.04 / (1.06^25)
PV= $5,369,009.59
Answer:
The correct answer is option D.
Explanation:
A reduction in consumer confidence will cause the IS curve to move leftwards. The IS curve is short for the investment savings curve. It shows the equilibrium in the goods market. It shows different combinations of interest rates and income where the goods market is in equilibrium.
A change in consumer spending causes a shift in the IS curve. A reduction in consumer confidence will cause consumers to spend less. This reduction in consumer spending will further cause the IS curve to shift to the left.
The answer to the given question above would be option C. The reason why research <span>and development is an integral part of the designing and producing process of an aerospace product is that, the </span><span>aerospace industry is constantly pushing the limits of technology. Hope this answers your question.</span>
