It should be noted that the contribution margin is first used to cover fixed expenses.
<h3>
What is contribution margin?</h3>
The contribution margin simply shows you the aggregate amount of revenue that is available after variable costs to cover fixed expenses.
Contribution margin is first used to cover fixed expenses. Once the break-even point has been reached, the contribution margin becomes profit.
Learn more about contribution margin on:
brainly.com/question/24962994
Answer:
the question is missing the numbers, so I looked for a similar question:
Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 8%, what is the present value of these cash flows? (Answer: $257) b. What is the future value in three years of the present value you computed in (a)? (Answer: $324.61) c. Suppose you deposit the cash flows in a bank account that pays 8% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?
a) PV = $100/1.08 + $100/1.08² + $100/1.08³ = $257.71
b) FV = $257.71 x (1 + 8%)³ = $324.64
c) FV = ($100 x 1.08²) + ($100 x 1.08) + $100 = $324.64
it is exactly the same as the answer for (b)
The answer choice that is NOT a method of evaluating the risk of a project is its B. Profile
<h3>What is Risk Management?</h3>
This refers to the identification of risk in any venture and the evaluation of the response to risk factors.
Hence, we can see that when a person is evaluating the risk of a project, he would have to check the net present value, the coefficient of variation, etc, but the evaluation of the profile is not a method of risk evaluation of the project.
Read more about risk management here:
brainly.com/question/13760012
#SPJ1
<span>The payment is said to be indexed. Indexing a payment means that the income payments are adjusted by a price index. This is to maintain the purchasing power of the public when inflation hits. This is a type of monetary correction.</span>
