1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Natali5045456 [20]
3 years ago
5

Liam is considering putting money in an investment plan that will pay him $52,000 in 12 years. If Liam's opportunity cost rate i

s 7 percent compounded annually, what is the maximum amount he should be willing to pay for the investment today?
Business
1 answer:
ASHA 777 [7]3 years ago
6 0

Answer:

$23,088.62

Explanation:

We must determine the present value of Liam's investment discounted by his opportunity cost rate. The present value formula is:

PV = FV / (1 + r)ⁿ

  • FV = $52,000
  • r = 7%
  • n = 12

PV = $52,000 / (1 + 7%)¹² = $52,000 / 2.2522

PV = $23,088.62

You might be interested in
Which of the following questions is an example of macroeconomics?
alex41 [277]

Answer:

C. If federal taxes are decreased will consumer spending increase?

Explanation:

One keen question that falls under the domain of macroeconomics is the behavior of consumer spending when taxes are decreased.

  • Macroeconomics presents approaches the study of the economy in a holistic way.
  • Every aspect of the economy is considered before strategic economic decisions are taken.
  • Interest rates, inflation, unemployment rate, foreign trade etc. are all categorized under macroeconomics.
8 0
3 years ago
The inflation tax refers to
Mandarinka [93]

Answer:

The correct answer is letter "D": the revenue a government created by printing money.

Explanation:

<em>When the government prints more money, there will be more supply of it. A higher supply of money tends to increase general prices causing inflation. Therefore, households will have to pay more money for goods and services which implies they will be paying more taxes, benefiting the government since it will have more money to finance its projects. </em>

The previous practice mentioned is implemented by governments that are not willing to increase the interest rate directly.

4 0
3 years ago
Read 2 more answers
When supervisors directly oversee the actions of employees, monitoring employees' work and correcting problems as they occur, __
pickupchik [31]
The answer to this question is <span>concurrent control
Concurrent control refers to the type of control by management in order to make sure that all employees are meeting the required regulations and standard.
This type of control is used to make sure that employees will always meet company's expectation so the company could realize all of its planned goals.

</span>
7 0
3 years ago
When the expected inflation rate increases, the real cost of borrowing ________ and bond supply ________, everything else held c
Dafna1 [17]

Answer:

The answer is: C) decreases ; increases

Explanation:

The real cost of borrowing is calculated by adjusting the nominal cost of borrowing by the inflation rate. This means that if the inflation rate increases, then the adjusted real cost of borrowing will decrease.

The inflation rate increases when country´s money supply growth rate outpaces its economic growth. So when the inflation rate increases (lowering the real cost of borrowing), borrowers are more likely to issue bonds, increasing the bond supply.

4 0
3 years ago
The difference between distributive negotiation strategies and integrative negotiation strategies is that (1) distributive strat
Karolina [17]

Answer:

C. The second statement is correct

Distributive strategies focus on dividing the pie and integrative strategies on expanding the pie.

Explanation:

Distributive negotiation is a type of negotiation that both parties agrees to sharing existing resources within themselves so that they can part ways and it's mostly a win-lose situation while the integrative negotiation is a type where both parties seek to further expand the existing resources be looking forward to a collaborative process, it's always a win-win situation for both parties.

5 0
3 years ago
Other questions:
  • How do you know which unit of a conversion factor must be in the denominator?
    13·1 answer
  • Why is it important for a court of record to keep an exact account of the trial?
    11·1 answer
  • The mid-1990s saw a rise in the use of mobile phones in the general population. The technology continued to improve in the early
    7·1 answer
  • Which act prohibits an employer from paying an employee of one gender less money than an employee of the opposite gender where t
    15·1 answer
  • The Cereal Bar, a fast-food restaurant that sells breakfast cereal, wanted to see if a different price for its Wild O's breakfas
    8·1 answer
  • GL Plastics spent $1,200 last week repairing a machine. This week the company is trying to decide if the machine could be better
    10·1 answer
  • Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost incurred
    9·1 answer
  • ABC common stock just paid a dividend of $2.50 per share. The ABC dividend is expected to grow 20% per year for two years, and t
    12·1 answer
  • I have a brainlest for anybody if the can tell me who won the wwe champoinship in 1996
    12·1 answer
  • Which pricing policy do you think would be best suited for a small business introducing a new line of clothing and accessories?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!