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chubhunter [2.5K]
3 years ago
14

A wealthy benefactor just donated some money to the local college. This gift was established to provide scholarships for worthy

students. The first scholarships will be granted one year from now for a total of $35,000. Annually thereafter, the scholarship amount will be increased by 5.5 percent to help offset the effects of inflation. The scholarship fund will last indefinitely. What is the value of this gift today at a discount rate of 9 percent
Business
1 answer:
Mariulka [41]3 years ago
5 0

Answer:

Worth of scholarship today =  $1,000,000

Explanation:

<em>The value of the scholarship can be determined using the present value of a growing perpetuity. A growing perpetuity is an indefinite annual payment that increases by a constant percentage.</em>

<em>The applicable formula is given below;</em>

<em>PV = A/r-g</em>

A-annual payment  one year from now - 35,000

r- interest discount rate - 9.,

g- growth rate - 5.5

The value of the gifts today

= 35,000/(0.09-0.055)

= $1,000,000

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Christin the CEO of a national IT manufacture is experiencing the   (B) bounded rationality

Explanation:

By analyzing the options given in the question we can say that

  • An ethical dilemma is said to have occurred when there is a conflict of interest between the two organization leaving one with making choices between  serving in the interest one the company or feathering one's nest.

  • Group think implies giving preference  to the decision of a group over individual's thinking

  • The concept of Bounded rationality was introduced by Herbert Simon wit  refers to the fact that making a rational decision is sometimes limited to the information at one's disposal as well as  one's mental prowess.

So the answer to the above question is  (B) bounded rationality-Christin is experiencing the dilemma of bounded rationality

8 0
3 years ago
Some companies now use online advertising campaigns and contests to help develop better goods, services, or ideas. This is most
Amanda [17]

The scenario illustrated by the company is related to promotion in marketing mix.

<h3>What is promotion?</h3>

It should be noted that promotion is the marketing communication that's used to inform the audience about a good.

In this case, since the companies use online advertising campaigns and contests to help develop better goods, services, or ideas. This depicts promotion.

Learn more about marketing on:

brainly.com/question/25754149

3 0
2 years ago
Why is the serving size on the nutrition facts panel important?
Andreas93 [3]

Answer:

It is an important factor in diet

Explanation:

People nowadays are very worried about their diet and they demand brands to mention everything which is included in the food. It is an important factor in the diet as it contains information from nutrients, fats, proteins and sodium. Overall, it is an important factor and most of the food authorities around the world have made laws to put nutrient facts panel on the food boxes.

4 0
3 years ago
Alternative price indexes
cluponka [151]

Answer:

-value of all goods and services produced in the economy this year

-this year's prices

-value of all goods and services produced in the economy this year

-the base year's prices

-bought by consumers

-the first scenario would have effect on the GDP deflator

-the second scenario would have effect on the GDP deflator

Explanation:

The GDP deflator is used in measuring inflation in the economy by measuring changes in prices of goods in the economy. It is used together with other indices such as consumer price index in arriving at a more accurate or balanced measurement of inflation I'm the economy. The GDP deflator would be affected above because it is more comprehensive in it's calculation or measurement as it doesn't take into account only a basket of goods and services like the Consumer price index does

6 0
3 years ago
Annual maintenance cost for a particular section of highway pavement are $3,000.The placement of a new surface would reduce the
UkoKoshka [18]

Answer:

$17,877

Explanation:

initial outlay = ?

net cash flows years 1 to 5 = $3,000 - $400 = $2,600

net cash flows years 6 to 10 = $3,000 - $800 = $2,200

assuming that the discount rate is 6%, we need to determine the maximum amount of initial investment that would result in the NPV = 0

in order to do this we have to calculate the present value of the future cash flows:

PV = $2,600/1.06 + $2,600/1.06² + $2,600/1.06³ + $2,600/1.06⁴ + $2,600/1.06⁵ + $2,200/1.06⁶ + $2,200/1.06⁷ + $2,200/1.06⁸ + $2,200/1.06⁹ + $2,200/1.06¹⁰ = $17,877

that means that the maximum amount that can be invested = $17,877, and that way the NPV = 0

7 0
3 years ago
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