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harina [27]
2 years ago
5

"You found out that now you are going to receive payments of $8,500 for the next 16 years. You will receive these payments at th

e beginning of each year. The annual interest rate will remain constant at 11%. What is the present value of these payments
Business
1 answer:
Paraphin [41]2 years ago
5 0

Answer:

Present value= $62,722.875≈ $62,723

Explanation:

To calculate present value use this formula

Present value= Yearly payment*{[1-(1+rate)^-period]/rate}

Present value= 8,500*{[1-(1+0.11)^-16]/0.11}

Present value= 8,500* {0.8117/0.11}

Present value= 8500*7.379= $62,722.875

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You are a project leader directed to provide the leadership of your organization with a potential idea(s) to increase productivi
Alenkasestr [34]

Answer:

The correct answer is letter "B": Systems Thinking.

Explanation:

Based on the ideas of British Scientific Manager Peter Checkland (born in 1930) in his book "<em>Systems Thinking, Systems Practice</em>" (1981), Systems Thinking is an analysis focusing on a system's parts and the way they interrelate to work among them over certain periods as a whole system. Systems Thinking is used in <em>environmental, political, educational, and medical research. </em>

<em> </em>

<em>The practice aims to evaluate each component's performance so feedback can be provided to asses the component to increase productivity.</em>

4 0
3 years ago
The business cycle is: a. the pattern of increases and decreases in the money supply. b. the term used to describe fluctuations
leonid [27]

Answer:

The correct answer is option b.

Explanation:

The business cycle can be defined as the fluctuations in the level of output of goods and services produced in an economy in a year. It is also referred to as the trade cycle.  

The business cycle consists of several stages such as recession, depression, expansion, boom or peak, recovery, etc.

The output level tends to fluctuate around its long term trend.

8 0
3 years ago
You are part of a group, making a decision about whether it is appropriate to discontinue research on a new drug. This new drug
Rufina [12.5K]

Answer: An escalation of commitment

Explanation:

Carrying out projects can be capital, time and energy intensive. Most times they could result to a positive progress or result and other times they may not but the area of changing minds on a project that has had a great ton of investment is usually hard except there is nothing that would be gotten from it. When so much time and resources has been put into a project and there is no plan for a change such commitment is called an escalation of commitment

6 0
3 years ago
An investor agreed to sell a warehouse five years from now to the tenant who currently rents the space. The tenant will continue
salantis [7]

Answer:

Net present value of $168,953.93

Explanation:

We will calculate the present value of the cash flow at the investor's rate of return.

First we have the annuity of 20,000 during 5 years

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C = 20,000

time = 5

rate = 10

20,000 \times \frac{1-(1+0.10)^{-5} }{0.10} = PV\\

PV = 75,815.73539

Then we calculate the present value of the final payment of 150,000

\frac{Nominal}{(1 + rate)^{time} } = PV

Nominal = 150,000

rate = 0.1

time = 5

\frac{150,000}{(1 + 0.10)^{5} } = PV

PV = 93,138.198459

<u>We add both together: </u>And get the present value

75,815.73 + 93,138.20 = 168,953.93

4 0
3 years ago
Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last
Taya2010 [7]

Answer:

Explanation:

Adams division:

Net income - 605000

Minimum acceptable income = [Total capital employed*Rate of return] = 4000000*0.08=320000

Residual income= NI-Minimum acceptable income=605000-320000=285000

Jefferson division:

Net income - 315000

Minimum acceptable income = [Total capital employed*Rate of return] = 3250000*0.08=260000

Residual income= NI-Minimum acceptable income= 315000-260000= 55000

4 0
2 years ago
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