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andriy [413]
2 years ago
13

When discussing time-value-of-money it is necessary to understand some key terminology. Which of the following terms refers to a

fixed amount of money paid or received at the end of every period (i.e. a series of equal lump sums)?
A. Future value
B. Present value
C. Ordinary annuity
D. Annuity due
Business
1 answer:
Elanso [62]2 years ago
5 0

Answer:

C. Ordinary annuity

Explanation:

The ordinary annuity is the sequence amount of an equivalent lump sum containing a fixed amount of money to be paid or earned at the end of each term. Periods here can be in weekly, monthly, semi-annual or semi-annual, or annual. The number should be the present value

Thus, the appropriate choice is c.

Therefore, all the remaining options are wrong

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A city government is considering two types of​ town-dump sanitary systems. Design A requires an initial outlay of ​$405 comma 00
SIZIF [17.4K]

Answer:

Desing A is a better deal as the equivalent annual cost is lower than desing B

Anywa, bot desing cost are above the city collections thus, it cannot afford the sanitary systems unless it raises taxes

Explanation:

<em><u>Desing A </u></em>

F0 405,000

operating and maintenance cost 51,000 for 14 years

Present value of the operating and maintenance cost:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C = $ 51,000.00

time = 14 years

rate = 0.07

51000 \times \frac{1-(1+0.07)^{-14} }{0.07} = PV\\

PV $446,018.8673

net worth: $ 851,081.87

equivalent annual cost:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 851,082

time 14

rate 0.07

851081.87 \div \frac{1-(1+0.07)^{-14} }{0.07} = C\\

C  $ 97,316.904

<u><em>Desing B</em></u>

F0 251,000

operating and maintenance cost 89,000 for 14 years

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 89,000.00

time 14

rate 0.07

89000 \times \frac{1-(1+0.07)^{-14} }{0.07} = PV\\

PV $778,346.6507

net worth: $ 1,029,346.65

equivalent annual cost:

1029346.65 \div \frac{1-(1+0.07)^{-14} }{0.07} = C\\

C  $ 117,700.580

5 0
3 years ago
Beswick company your team is allocated a project involving a major client, the beswick company. although the organization has ma
lianna [129]

Answer: A. low degree of substitutability.

Explanation:

Substitutability refers to the availability of alternative options to the variable in question. If something is said to be highly substitutable or to have a high degree of substitutability, then that means that it is easily replaceable because it has alternatives. The reverse holds true.

Therefore, Jamie can be said to have a low degree of substitutability because the client wants to deal with only him and if he is removed or unavailable, the company would not be able to deal with the client.

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vitfil [10]

Answer:

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8 0
3 years ago
Which of the following is not true of taxable asset purchases?
shutvik [7]

Answer:

e. None of the above

Explanation:

The taxable asset purchases allows the individual to increase or step up the tax basis of acquired assets so as to reflect the price of the purchases made.

If one buy an assets, then he or she wants to allocate total purchase price in a way which gives a favorable postacquisition tax results.

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Private enterprise is run mainly to?
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Most private enterprise mainly run to gain profit
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