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Nuetrik [128]
3 years ago
5

Graciela Treadwell won a lottery. She will have a choice of receiving $25,000 at the end of each year for the next 30 years, or

a lump sum today. If she can earn a return of 10 percent on any investment she makes, what is the minimum amount she should be willing to accept today as a lump-sum payment? (Round to the nearest hundred dollars.
A. $235,700
B. $750,000
C. $334,600
D. $212,400

Business
1 answer:
Ket [755]3 years ago
3 0

Answer: A. $235,700

Explanation:

Minimum value will be the present value of the yearly payments for the next 30 years at 10%.

This is a steady amount so it is an annuity.

Present value of annuity = 25,000 * Present value annuity factor, 30 years , 10%

= 25,000 * 9.4269

= $‭235,672.5‬

= $‭235,700

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solmaris [256]

Answer:

The answer is: Cultural environment

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They are continuously changing and evolving, for instance 100 years ago gays weren´t allowed to marry, in many places being gay was outlawed. All businesses should change their marketing strategies to reflect cultural changes. Imagine if the TV ads from the 1980s were still running today, many would be considered scandalous, misogynistic or sexist.

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3 years ago
What is the SAT?
anyanavicka [17]

Answer:

an exam to get into college

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8 0
3 years ago
An economist has predicted 2% inflation during the next 10 years. how much will an item that presently sells for 100 cost in 10
VikaD [51]

Answer:

With 2% inflation during the next 10 years, an item that presently sells for 100 will cost 102 in 10 years' time.

Explanation:

However, if the predicted inflation rate of 2% happens year on year, then the cost of the item will become 121.90 (100 (1+ 2%)∧10), compounded annually.  In itself, inflation is the decline of the purchasing power of a given currency over some period of time.   It is a quantitative measure of the rate at which the decrease in the purchasing power of the selected currency occurs, and how this is reflected in the price level of a basket of selected goods and services in that economy over some period of time.

4 0
3 years ago
The following data are available relating to the performance of Wildcat Fund and the market portfolio: Wildcat Market Portfolio
alekssr [168]

Answer:

50.0%

Explanation:

The computation of the information ratio is as follows

Information ratio = Alpha ÷ residual standard deviation

where,

Alpha is

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And the required rate of return is

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5 0
3 years ago
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timofeeve [1]

Answer:

500

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since it is mentioned in the question that there is a minimum of 1,000 laptop is on hand so here 500 should from inventory.

Therefore 500 should be produced for filling the order

Hence, the same is to be considered

Therefore the  number of laptops to be produced is 500

5 0
3 years ago
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