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
Nataly [62]
3 years ago
15

Perpetuities are also called annuities with an extended, or unlimited, life. Based on your understanding of perpetuities, answer

the following questions. Which of the following are characteristics of a perpetuity?
a. The value of a perpetuity cannot be determined.
b. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.
c. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.
d. A perpetuity is a stream of regularly timed, equal cash flows that continues forever.
Business
1 answer:
Oduvanchick [21]3 years ago
3 0

Answer:

d. A perpetuity is a stream of regularly timed, equal cash flows that continues forever.

Explanation:

A perpetuity refers to a future stream of cash flows, paying a constant amount regularly till forever. Such stream is never ending.

The present value of a perpetuity is computed by dividing the constant amount receivable till forever, by required rate of return/cost of capital.

Present value of a growing perpetuity is given by

= \frac{Cash\ Flow(1\ +\ g)}{r\ -\ g}

wherein cash flows represent cash flows receivable growing at g% rate till forever

r = required rate of return or cost of capital

g= growth rate of cash flows

Where the cash flows are of constant amount i.e non growing nature, the present value of such a perpetuity is given by,

= \frac{Cash\ Flows}{Required\ rate\ of\ return}

You might be interested in
Which of the following companies is an example of a manufacturer? a. H&R Block b. Best Buy c. Intel d. Trism e. Walmart
Otrada [13]

Answer: Intel.

Explanation:

A manufacturer is a company that makes finished or semi-finished goods for sale from raw materials. Intel produces various chips and microprocessors used in making most computers in the market.

7 0
3 years ago
Is there a trade-off between standardization and innovation? how are the two related in most companies?
Dmitry_Shevchenko [17]
Standardization and innovation play critical roles in the development of goods and services. Standardization allows for a stabilized starting point in which to move forward and develop other goods and services which is related to innovation. Standardization provides stability, a known factor which can be relied upon, whereas innovation is riskier and may not come to be successful endeavor. However, like all risk, that is the payoff for the investment in innovation, for if the innovative good or service can be successfully brought to market, the dividends for a payout can be well worth it.
5 0
3 years ago
Resources are used efficiently in the sunhat market because when​ _______.    A. production is capital​ intensive, producer surp
Bad White [126]

Answer:

The correct answer is B

Explanation:

Resources are used efficiently in the sunhat market because when marginal social benefit equals marginal social cost, total surplus is maximized. Thus, From the given four options only the option B is the correct option.

MSC = Marginal Social cost

MSB = Marginal Social Benefit

It is becuase in the competitive market, the quantity that is supplied in the market in same to the quantity which is demanded.

6 0
3 years ago
Creative Sound Systems sold investments, land, and its own common stock for $32.0 million, $14.8 million, and $39.6 million, res
Studentka2010 [4]

Answer:

Creative Sound Systems should report $18,800,000 as net cash flows from financing activities

Explanation:

Cash flow Financing activities are the funds that the business acquire or paid to finance its main activities, these involve borrowing and repaying short-term loans, long-term loans and other long-term liabilities.

From the question, Cash inflow from Issue of common share and Cash outflow from purchase of treasury stock are the only recognizable Financing activities

Particulars                                                                Amount

Cash inflow from Issue of common share              $39,600,000

Cash outflow from purchase of treasury stock     -$20,800,000

Net cash flows from financing activities              $18,800,000

7 0
3 years ago
An attractive business climate is defined by only one dimension: it minimizes the political risk to a company.
kari74 [83]
I believe the correct answer is false. <span>An attractive business climate is not defined by only one dimension: it minimizes the political risk to a company. Other than this, there are other indicators present. Hope this answers the question. Have a nice day.</span>
4 0
3 years ago
Other questions:
  • A and B are married and own property as tenants by the entirety. The property is worth $500,000. A incurs a debt of $100,000 and
    11·1 answer
  • Which type of account is typically the MOST liquid? Checking account Savings account Certificate of Deposit Exchange Traded Fund
    12·1 answer
  • Buying goods or services instead of producing or providing them in-house is called:
    14·1 answer
  • The w in the wh framework for business ethics stands for
    14·1 answer
  • If fixed costs are $1,200,000, the unit selling price is $240, and the unit variable costs are $110, what is the amount of sales
    11·1 answer
  • When a standalone organization is created and owned by two or more parent companies together, the strategic alliance is referred
    9·1 answer
  • What is the last phase of the technology development cycle, where a technology no longer provides a competitive advantage becaus
    14·2 answers
  • In its December 31 balance sheet, Butler Co. reported trade accounts receivable of $250,000 and related allowance for uncollecti
    10·1 answer
  • A new product innovation that is consistent with the values and experiences of potential adopters and attracts new buyers at a r
    11·1 answer
  • Which is the largest of the four information technology pathways?
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!