Answer: See attachment
Explanation:
Based on the information provided, the question has been solved and attached.
Profitability for Alpha:
Revenue = $100,000
Cost = $39800
Profit = $60200
Profitability for Beta:
Revenue = $100,000
Cost = $26350
Profit = $73650
Profitability for Gamma:
Revenue = $100,000
Cost = $27440
Profit = $72560
Answer:
Rise
Rise
Explanation:
Pepsi and Coca cola are considered substitutes. If the price of Pepsi increases, consumers would begin to consume more coca cola and the demand for coca cola would increase. This would lead to an excess of demand for coca cola over supply and prices would rise.
I hope my answer helps you
Answer:
PV when interest rate is 6% = $957.88
PV when interest rate is 7%= $918
PV when interest rate is 5%= $1,000
Explanation:
The price of a bond is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are to be paid annually and the par value of the bond that will be paid at the end of 5 years.
During the 5 years, there are 5 equal periodic coupon payments that will be made. Given a par value equal to $1,000, in each year, and a coupon rate equal to 5% the annual coupon paid will be = $50. This stream of cash-flows is an ordinary annuity.
The PV of the cash-flows = PV of the coupon payments + PV of the par value of the bond
Assuming the current interest rate is 6 percent
PV =50*PV Annuity Factor for 5 periods at 6%+ $1,000* PV Interest factor with i=6% and n =5
= = $957.88
The bond sells at a discount.
Assuming the current interest rate is 7 percent
PV =50*PV Annuity Factor for 5 periods at 7%+ $1,000* PV Interest factor with i=7% and n =5
= = $918
The bond sells at a discount.
Assuming the current interest rate is 5 percent
PV =50*PV Annuity Factor for 5 periods at 5%+ $1,000* PV Interest factor with i=5% and n =5
= = $1,000
The bond sells at par