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mote1985 [20]
3 years ago
9

g If a firm can earn a profit stream of $50,000 per year for 10 years, that profit stream is worth:1)A)nothing today)less than $

500,000 today, but a positive amount.C)$500,000 today.D)more than $500,000 today.E)some amount, but whether it is more, less or the same as $500,000 cannot be determined.
Business
1 answer:
galben [10]3 years ago
5 0

Answer:

b)less than $500,000 today, but a positive amount.

Explanation:

By the virtue of the concepts of compounding and discounting, we understand that $1 today is worth more that $1 in the future.

Where Pv = Present value

Fv = Future value

r = discount rate

t = time

Fv = Pv ( 1 + r)^t

As such If a firm can earn a profit stream of $50,000 per year for 10 years, that profit stream is worth less than $500,000 today, but a positive amount.

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In monopolistic competition, if a firm advertises and effectively raises consumer awareness of its product, it tends toA) lower
raketka [301]

Answer:

B) raise costs and increase demand for its product

Explanation:

A monopolistic competition is when there are many firms operating in an industry. The firms sell differentiated goods and set the market price for their goods and services.

Monopolistic competition engage in advertisement to increase the awareness for their goods.

If advertising is successful , it increases the demand for their goods and services.

Advertising also increases the cost of production.

I hope my answer helps you.

5 0
3 years ago
You are making a $120,000 investment and feel that a 10 percent rate of return is reasonable given the nature of the risks invol
Vika [28.1K]

Net Present Value is the difference between the present value of cash flows and the initial investment.

Net Present Value = Present Value of cash flows - Initial Investment

The following image shows the Net Present value of the cash flows:

Net Present Value = $122,142 - $120,000

Net Present Value = $2,142

5 0
3 years ago
Tolton, Inc. is just shy of hitting its operating income target. The manager, K.T. Tolton, decides to purchase inferior material
mario62 [17]

Answer:

Net income increase - $4,890

Explanation:

The computation of the effect on net income is shown below:

= Number of pounds of inferior product × (standard price for the materials - inferior product price per pound)

= 3,000 pounds × ($13 - $11.37)

= 3,000 pounds × $1.63

= $4,890 increase

For determining the effect we took the difference of the prices and then multiply it with the number of pounds of the inferior product

6 0
3 years ago
How much is round trip plane ticket cost from cleveland ohio to phoenix arozona
Marizza181 [45]
Depends on which airline you take
lowest cost 118 highest around 260
6 0
2 years ago
Joseph purchased 100 shares of abcd growth fund for $10.00 per share for a total investment of $1,000. at the end of one year, h
EleoNora [17]
It is given that Joseph purchased 100 shares of ABCD Growth Fund for a price of $10.00 per share with a total investment of $1,000. At the end of the year he sold his investment for $11.20 per share. Find the total capital gain.

To get the capital gain, compute the total price in which Joseph sold his investment.

$11.20 x 100 = $1,120

Subtract the answer to the total price bought by Joseph
$1,120 - $1,000 = $120

The total capital gain is $120
7 0
3 years ago
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