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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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On an afternoon that a class meets, you could alternatively study for an exam that will take place in another class the next mor
EastWind [94]

Answer:

D) being unable to engage in all three of the above activities.

Explanation:

An opportunity cost is the cost (or lost benefit) of choosing one activity or investment over another. In this case, if the student decides to attend afternoon class, he/she will not be able to benefit from:

  • taking a nap
  • seeing a movie with a friend
  • studying for next morning's test

So all the three activities represent the opportunity cost of attending afternoon class.

4 0
3 years ago
The government offers a subsidy of $5 per unit that increases the profit-maximizing quantity to 200 units. What will the total c
mars1129 [50]

Answer:

An apple, potato, and onion all taste the same if you eat them with your nose plugged

Explanation:

7 0
3 years ago
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The m
nevsk [136]

Answer:

8%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator.

Cash flow in year zero = $-165,000

Cash flow each year from year one to seven = $31,692

IRR = 8%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

6 0
3 years ago
If we assume that both countries specialize according to their comparative advantage, then how do we find a terms of trade that
levacccp [35]

Answer:

The best way to find terms of trade that will ensure that two entities are in the best terms of trade will be to look at the opportunity costs of the various products they produce.

A high opportunity cost in one product relative to that of the other entity means the entity with the higher opportunity cost should be trading with the entity with the lower opportunity cost and vice versa.

For example, assume that an entity "A" produces both rice and beans whilst an entity "B" also produces rice and beans too.

If the opportunity cost to A of producing Beans is 300 bags of rice whilst the opportunity cost to B of producing Beans is 120 bags of rice, and the opportunity cost to A of producing rice is 180 bags of beans whilst it is 250 bags of beans to B, the principles of comparative advantage require that A should focus more on producing rice and purchase beans from B whilst B should focus more on producing beans and purchase rice from A.

Cheers!

4 0
3 years ago
Max and maddy charge people to park on their lawn while attending a nearby craft fair. At the current price of $10, seven people
guapka [62]

Answer: c. They would do better charging $15 than $10.

Explanation:

It is given that Max and Maddy total cost of car parking remains the same, that is it does not matter whether they have seven or five cars parked on their lawn. So, since total cost is constant, Max and Maddy's decision would depend on total revenue.

Profit = TR- TC

Total revenue from charging, $10 is $70,

Total revenue from charging $15 is $75.

Since, total cost is constant, Max and Maddy will choose to charge $15 since it is giving them $5 more.

5 0
3 years ago
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