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SpyIntel [72]
3 years ago
15

Lotta Dough just won the state lottery and has elected to receive $50,000 per year for 20 years in the form of an annuity due. W

hat is the present value of this stream of payments if money can earn 7 percent annual interest?
Business
1 answer:
lidiya [134]3 years ago
3 0

Answer:

PV= $529,700.71

Explanation:

Giving the following information:

Cash flow= $50,000

the number of years= 20

Interest rate= 7%

First, we need to calculate the future value of the cash flows. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual pay

FV= {50,000*[(1.07^20)-1} / 0.07

FV= $2,049,774.62

Now, we can calculate the present value.

PV= FV/(1+i)^n

PV= 2,049,774.62/1.07^20

PV= $529,700.71

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Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials
stiv31 [10]

Answer:

B) satisfying the changing needs of current and new customers.

Explanation:

When a restaurant wants to introduce a new dish, it's best to test the market response to the dish before listing it on the standard menu. A type of test would be offering the dish only in special occasions, when sales are higher, and more potential customers visit the restaurant.

Another way is to simply offer the dish in a normal weekday, and see how people respond to it under regular conditions.

8 0
3 years ago
The number of suppliers that enter and leave the market has no effect on the number of goods or services supplied.
Kobotan [32]

Answer:False

Explanation:

5 0
3 years ago
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Billy never lets money stay in his pockets, he thinks if it is there he has to spend it. Often he spends it on useless "stuff".
AleksandrR [38]

Answer:

let him put it where he won't see them until It is enough for buying his wants

4 0
3 years ago
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Lion Industries required production for June is 132,000 units. To make one unit of finished product, three pounds of direct mate
OleMash [197]

Answer:

Raw materials to be Purchased 426,000

Explanation:

Raw materials production needs  396,000 (A)

Desired Ending Inventory             330,000  (B)

Total needs                                    726,000   (C) (A+B)

Beginning Inventory                    (300,000)  (D)

Raw materials to be Purchased 426,000

(A)

Required production 132,000

each units required 3 pounds of raw materials per unit

so we multiply to get how many are required for production

(B) the desired inventory are additional units we need to purchase

(D) the beginning inventory are units we already have on inventory, decreasing our purchase needs.

6 0
3 years ago
Economic efficiency requires that a natural monopoly's price be: Select one: A. equal to marginal cost where it intersects the d
slavikrds [6]

Answer: A. equal to marginal cost where it intersects the demand curve

Explanation:

In a pure competition, the market is efficient because it balances demand and supply and gives an equilibrium price that takes both of them into account.

In this market, the price is equal to the marginal revenue of a firm and the profit maximizing level of production is where the marginal revenue intersects the marginal cost.

The efficient level is therefore where price equals marginal cost. The same goes for a natural monopoly. If economic efficiency is to be achieved, the natural monopoly's price must equal the marginal cost at the equilibrium price.

7 0
3 years ago
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