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MAVERICK [17]
3 years ago
7

Suppose you the alternative of receiving either $22,000 at the end of five years or P dollars today. Currently, you have no need

for money, so you could deposit the P dollars in a bank that pays 5% interest. What value of P would make you indifferent in your choice between P dollars todays and the promise of $22000 at the end of five years?
Business
1 answer:
Marysya12 [62]3 years ago
4 0

Answer:

Indifference amount= $17,237.58

Explanation:

Giving the following information:

Suppose you the alternative of receiving either $22,000 at the end of five years or P dollars today.

We need to find the present value of $22,000 at an interest rate of 5%.

PV= FV/(1+i)^n

PV= 22,000/ 1.05^5= $17,237.58

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Assoli18 [71]

Answer:

c. production industries need a large initial investment.

Explanation:

The main reason there are fewer production industries than distribution or service industries is that production industries need a large initial investment. Production companies such as energy companies can be partitioned into gas, oil as well as coal generators, the corporations that explore, regain and clarify energy sources as well as power companies that produce effectiveness to corporations as well as individuals. Both sectors of the energy enterprise perform frequently substantial money investments. Similarly power companies, telecommunications companies need continuous investments in support in enhancement to analysis and advancement as well as product manufacturing.

8 0
3 years ago
The current USD/euro exchange rate is 1.4000 dollar per euro. The six month forward exchange rate is 1.3950. The six month USD i
Zigmanuir [339]

Answer:

the six month euro interest rate is 1.36%

Explanation:

Spot exchange rate: 1.4 USD/ EUR

6 month forward rate: 1.3950 USD/EUR

Domestic interest rate: 1% pa

Foreign interest rate: the six month euro interest rate?

We have the formula:

Forward rates =  Spot rate * (1+domestic interest rate)/(1+foreign interest rate)

⇔ 1.3950 = 1.4 *(1+1%)/(1+foreign interest rate)

⇔ 1+foreign interest rate = 1.4 *(1+1%)/1.3950

⇔foreign interest rate = 1.01362 - 1 = 0.01362

⇒ the six month euro interest rate is 1.36%

7 0
3 years ago
The purposeful use of symbols to allow multiple interpretations of messages is called:____.
elena55 [62]

Answer:

a. strategic ambiguity.

Explanation:

The use of strategic ambiguity permits the views for diversify or interpretations also at the same time it promotes inclusiveness and unity

The mission and vision sttaement should be confused and normal in nature in order to provide the accomodation

So the use of symbols for permitting out the multiple interpretations of messages is known as the strategic ambiguity

Therefore the option a is correct

6 0
3 years ago
Baldwin has an asset turnover of 1.55 (Asset Turnover = Sales/Assets). That means:________.
DedPeter [7]

Answer:

4. Each $1.00 of assets in the firm generates $1.55 of sales revenue.

Explanation:

Given that

The asset turnover ratio is 1.55 times

Also, it could be calculated by applying the following formula

Asset turnover ratio is

= Sales ÷ Average assets

In this the comparison is made for generating the sales by considering the assets

Therefore in the given case, the last option is correct and hence the same is to be considered

5 0
3 years ago
Safe-deposit boxes are:
ruslelena [56]

Answer:A safe deposit box, also known as a safety deposit box, is an individually secured container, usually held within a larger safe or bank vault. Safe deposit boxes are generally located in banks, post offices or other institutions. ... In the United States, neither banks nor the FDIC insure the contents.

Explanation:

3 0
3 years ago
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