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morpeh [17]
3 years ago
12

You will receive $500 tomorrow. You will receive an additional nine cash flows growing at the rate of inflation of 2 percent per

year. The nominal interest rate is 10 percent. a. Find the value of the stream of cash flows. Make sure to show your work. b. What is the real value of each cash flow received? Make sure to show your work. c. Find the value of the stream of cash flows, based on real values. Make sure to show your work. d. What do you observe? Explain.

Business
1 answer:
kobusy [5.1K]3 years ago
7 0

Answer:

please find the solution which is defined as follows:

Explanation:

please find the table in the attached file:

  • In point A, The Cashflow value = 5474.86 (premised on the description of cash flows).
  • In point B, the above table the PV of cash flow represents the real cost of its earned cash flow.
  • In point C, its actual value of the cash flow source is 3643.921.
  • In point D, The observation would be that the value of money year after year is depleting and is worth far more as inflation is weak.

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2 years ago
Pierce Company incurred $150,000 of research and development costs in its laboratory to develop a new product. It spent $20,000
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Answer:

A. $35,000

Explanation:

The first $150,000 were invested in research and development of the product itself, not the patent. Thus, this amount should be debited to research and development expenses.

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Therefore, the total amount that should be debited to Patents (P) is:

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According to the expectancy theory, the employee is likely to see the "effort-performance" relationship as weak and demotivating.

<h3>What is expectancy theory?</h3>

According to expectancy theory, people are more motivated to work hard if they believe their efforts will be noticed and rewarded.

The importance of expectancy theory are-

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2 years ago
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