Answer:
a-1. The present value of Plan 1 = $93.08
a-2. The deal 2 which involves paying immediately adn taking the 10% discount is better.
Explanation:
a-1.
The interest rate of 5% is taken as the discount rate to convert future cash flows into the present value.
The First payment plan with installments has a present value of,
Present Value-Plan 1 = 25 + 25/1.05 + 25/1.05² + 25/1.05³ = $93.08
a-2.
The first plan will cost $93.08 in the present value.
The second plan will involve immediate payment and a discount of 10%vwhch makes the present value of plan 2 as $90 (100 - (100*0.1)).
Thus, the second deal or deal involving immediate payment and taking the discount is better.
Life expectancy is about 75 years.
One third:
75 : 3 = 25
So one generation is about 25 years.
2,000 : 25 = 80
Answer:
Approximately 80 generations have passed during the last 2,000 years.
Answer:
The following summarizes the solution to the given problem.
Explanation:
The given values are:
Sales,
= $660,000
Expenses,
= $255,453
Received cash revenues,
= $605,934
(a)
According to the accrual, profits would be acknowledged and therefore not necessarily received on the occasion of purchase.
⇒ 
On substituting the given values, we get
⇒ 
⇒
($)
(b)
⇒ 
On substituting the given values, we get
⇒ 
⇒
($)
(c)
- The reliable financial foundation again for a financial consultant is more helpful because it demonstrates or represents the organization's appropriate financial status.
- It accepts the profits throughout a similar time frame.
Answer:
Follows are the solution to this question:
Explanation:
Follows are the two ways of describing its high return:
Firstly, the mutual fund is invested in pretty unstable debt and is reciprocating with greater yields for taking a risk.
Secondly, during every decrease in bond yields, the finance kept bonds so the income on stocks exceeded this same rate of interest significantly. Remember that bond costs skyrocket as interest rates drop as well as give the purchaser an investment income. Because once interest rates are now close to zero, it's also likely that they could increase as well as the owners would then lose their money. Its high return could be due to a drop in interest rates, and not only will it not be replicated, but the low or even low return will almost definitely be followed by either a rise in interest rates.
This is an example of decline.
It has gone from being in maturity to being in decline.