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lilavasa [31]
3 years ago
6

Present value is: a. The future value of a current amount of money evaluated at a given interest rate. b. The current value of a

future amount of money, or a series of payments evaluated at a given interest rate. c. The value of an amount of money at a specific future date that is equivalent to a specified sum of money today.
Business
2 answers:
emmainna [20.7K]3 years ago
8 0

Answer:

B) The current value of a future amount of money, or a series of payments evaluated at a given interest rate.

Explanation:

One of the basic premises of finance is that the value of money changes in time, i.e. one dollar today is worth more than one dollar tomorrow.

The present value refers to the current value of a future amount of money or a series of future cash flows. It can be calculated using the present value formula:

present value = future value / (1 + r)ⁿ

  • r = discount or interest rate
  • n = number of periods, e.g. years, months
  • future value = the nominal future value of the amount of money

for example, $100 received in 1 year using a 5% discount rate:

present value = $100 / (1 + 5%)¹ = $95.24 of today's money

pogonyaev3 years ago
3 0

Answer:

Explanation:

Present value is calculated as the discounted sum of either a fixed amount or a series of payments in the future, at a given interest rates.

For example, at an interest of 5%, $100 in 10 years will be valued at $100 / 1.05^10 = $61.39 today

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VladimirAG [237]

Answer:

The correct answer is option C.

Explanation:

Suppose there is pessimism in an economy because of corporate scandals, international tensions, loss of confidence, etc. This is going to adversely affect the economy. Because of corporate scandals, the investment will decline. Loss of confidence in consumers will cause a reduction in consumption spending. International tensions cause net exports to decline.  

All of this causes aggregate demand to decline. The aggregate demand curve moves to the left. This leftward shift causes both the quantity of output and price to fall. As output fall real GDP will decline as well.

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3 years ago
Exercise 9-5 Sandhill Co. purchased a new machine on October 1, 2017, at a cost of $80,010. The company estimated that the machi
Dovator [93]

Answer:

2017 = $2,598 and 2018 = $10,390

Explanation:

The computation of the depreciation expense for the second year is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($80,010 - $7,280) ÷ (7 years)

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= $10,390 × 3 months ÷ 12 months

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The three months is calculated from the October 1, 2017, to December 31, 2017

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3 years ago
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Increased Differentiation is competitive position by increasing the differentiation of their product and service offerings.

What is Increased Differentiation?

The key characteristic(s) that set one company's goods or services apart from those of its rivals are referred to as that company's products. Successful product diversification increases sales and customer loyalty.

A product differentiation strategy includes identifying and outlining a company's or product's distinctive features as well as the most critical distinctions between it and its rivals. Creating a strong value proposition and unique selling concept for a product or service is essential to making it appealing to a target market or audience.

If done successfully, product diversification might provide the product's seller a competitive edge and eventually increase brand recognition. The quickest high-speed Internet connection and the most cost-effective electric car on the market are two instances of different commodities.

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1 year ago
The price elasticity of a good will tend to be larger:a)the longer the relevant time period. b)the fewer number of substitute go
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The price elasticity of a good will tend to be larger if the fewer number of substitute goods will be  available.

The cross elasticity of demand for substitute goods is always positive because the demand of one good increases at the time when the price for the substitute good increases however the cross elasticity of demand for complementary goods is always negative.

For example, if the price of coffee rises, the quantity demanded for tea which is the best  substitute of coffee beverage will increase as consumers will switch to a less expensive but the  substitutable alternative.

This is reflected in the cross elasticity of the demand formula, as both the numerator  which is the percentage change in the demand of tea and denominator which is the price of coffee  shows a positive increase.

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7 0
1 year ago
Charles Zimmerman owns an acre of swampy land just off the interstate. He would like to pave the surface and build a gas station
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B. The legal and regulatory requirements
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