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Neko [114]
3 years ago
5

"A tenant offers to sign a lease paying a rent of $1,000 per month, in advance (i.e., the rent will be paid at the beginning of

each month), for five years. At 10% nominal annual interest compounded monthly, what is the present value of this lease
Business
1 answer:
belka [17]3 years ago
3 0

Answer:

$47,500

Explanation:

Since the payment is made monthly in advance for the period of 5 years, therefore the present value of annuity formula shall be used for the purpose of calculating the Present value of lease, which is given as follow:

Present value of annuity=R+R[(1-(1+i)^-n)/i]

In the given question

R=Rent per month paid in advance=$1,000

i=interest compounded monthly=10%/12=0.83%

n=number of payments involved=(12*5)-1=59

Present value of annuity=1,000+1,000[(1-(1+0.83%)^-59)/0.83%]

                                        =$47,500

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Drake enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment m
nexus9112 [7]

Answer:

The answer is: be able to recover damages

Explanation:

In order for a Drake (the plaintiff) to be able to recover damages he must prove that he suffered an injury (economic injury in this case) by Eve's false claims.

Eve promised to multiply Drake's money and instead Drake lost money. The proof of injury would be the money lost by trading with Eve's false algorithm.

4 0
3 years ago
he most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 18,900 Current assets $
Pavel [41]

Answer:

9.69%

Explanation:

Given the following :

Net income = $4819

Total asset = $38,200

Taxable income = $6,100

Dividend payout ratio = 30% = 0.3

The internal growth rate is calculated thus ;

(Return on asset × Retention ratio)/[1-(Return on asset × Retention ratio)]

Return on asset = (Net income / total asset)

Return on asset = ($4,819 / $38,200)

Return on asset = 0.12615

Retention ratio = 1 - Dividend payout ratio

Retention ratio = 1 - 0.3 = 0.7

Hence internal growth rate :

(0.12615 × 0.7) / 1 - (0.12615 × 0.7)

0.088305 / 1 - 0.088305

0.088305 / 0.911695

= 0.0968580

= 0.0968580 × 100%

= 9.685%

= 9.69% ( 2 decimal places)

6 0
3 years ago
The demand curve faced by a perfectly competitive firm rev: _______
vivado [14]

Answer:

The answer is D.

Explanation:

The demand curve faced by perfectly competitive firm is horizontal. This means that if individual firm charges price above the market price, it will not sell anything.

The curve is the same as marginal revenue curve because change in total revenue from selling one more unit(marginal revenue) is the constant market price.

And it holds in perfect market that price equals marginal revenue (P=MR).

The correct option is D.

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3 years ago
Carla Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stoc
velikii [3]

Hey! How are you? My name is Maria, 19 years old. Yesterday broke up with a guy, looking for casual sex.

Write me here and I will give you my phone number - *pofsex.com*

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8 0
3 years ago
If airlines do not change their prices how else might they try to compete with each other?
WARRIOR [948]
<h3>Hello there!</h3>

Your question asks how airlines compete with each other if they don't change their prices.

<h3>Answer: By giving the customers better service.</h3>

If an airline company doesn't want to change their prices for a flight, but still want to compete with other airlines, then they would try to compete by providing more and better services to the customers.

When an airline competes with providing better services, it attracts customers to choose them because customers could feel more comfortable on their flight.

Airlines can compete by providing:

  • Wi-Fi
  • More space
  • Entertainment
  • Food

Airlines now a days are starting to provide Wi-Fi services to its customers in the aircraft. Since we live in a world that needs Wi-Fi for electronical things, airlines are providing Wi-Fi in order to have people choose their airline for their flight. Providing Wi-Fi to its customers will not only bring in more customers, but can keep people busy on the flight, having no disruptions since people would be focused on their personal stuff on their laptop/phone/etc.

Airlines are also competing by providing more space in their cabin. People that go on flights feel very cramped in their seat; having little leg room between their legs and the seat in front of them. Airlines are making more leg room and space for the customers in order for them to enjoy the flight. This is luring in customers because customers want to feel comfortable, and space is the main thing that customers want in their flights.

Airlines are also competing by providing entertainment. The entertainment part of an aircraft is in the little screen that would be in front of the customer, behind the seat in front of them. This entertainment service would entertain people on their flights. This entertainment service could provide movies, world map, and etc. Flights are boring, and so airlines are trying to make the flights more entertaining.

Airlines are also competing by providing better food. Who doesn't get hungry on the plane? If airlines are giving terrible food, why would someone want to choose that airline again? Airlines are providing better food in order for customers to choose them as their airline. Food is a major thing that lures people into different airlines. This is something that airlines are trying to improve all the time.

To sum it all up, these are just some of the ways airlines compete with each other, without having to change the price of their flights.

<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>
5 0
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