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zubka84 [21]
3 years ago
10

Why is there a time value of money (cash received today is valued more than cash received a year fromnow)?a. Interest rates are

greater than zero.b. Inflation.c. Consumption needs.d. risk.e. a and b are correct.f. c and d are correct.
Business
1 answer:
Simora [160]3 years ago
7 0

Answer:

<u>A and B are correct</u>

Explanation :

  • The TVM concept is based on the value of money which is today may change with time as a rise or fall in prices thus this explains why the interest rates are paid and calculated on the basis of the present values that may change such as future sum of money of cash flows, can get discontinued at the discounted rates.
  • Future values can be ascertained based on the present value of the product/assert. Thus the interest rates and inflation rates change as the risks and the consumer's needs will always be present and have existed earlier.
  • It's calculated by the present value and future value of money multiplied by the interest rate and the total number of years. I.e
  • FV = PV x [ 1 + (i / n) ] (n x t)
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The answer is  letter "C": Producer surplus and consumer surplus will increase because the market becomes more efficient.

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Named after English economist Arthur C. Pigou (1877-1959), the Pigovian Tax or corrective tax is a fine imposed against taxpayers for being part of activities that generate negative side effects. According to Pigou, these externalities play a negative role in the market to reach equilibrium.

It is true that the corrective tax encourages market efficiency but it doesn't imply the tax will lead to producer or consumer surplus, since those are actually influenced by basic supply and demand laws, making option "C" a false statement.

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3 years ago
Nora is deaf and works at a busy coffee shop as a barista. her main duties include standing at the drive-thru window, taking cus
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Another accommodation that her employer could  could simply have a system where they can not only communicate with the customers but also hand them over without any complications.

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3 0
1 year ago
When Alex in Quince Orchard, MD, uses a check to buy a tractor from Steven in Austin, TX, __________ different banks are involve
Paladinen [302]

Answer:

Four banks are invloved

Explanation:

The reason is that one bank is the one in which Alex has its account and the other bank bank is the bank in whihc Steven has account. Quince Orchard in one state and austin is in the other state, so central banks of each state will be involved in transferring the money from one bank account to the other bank accounts so the total number of banks involved are four.

8 0
3 years ago
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NewTech Corporation is offering a 10% stock dividend. The firm currently has 200,000 shares outstanding and after-tax profits of
AleksAgata [21]

Answer:

Earnings per share after the stock dividend is $3.636.

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=200,000*(1+10%)

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So, the earnings per share after the stock dividend is $3.636.

6 0
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