Answer:
Instructions are below.
Explanation:
Giving the following information:
Option 1:
$12,000 cash now
Option 2:
$900 every quarter for 4 years.
Interest rate= 8% compounded quarterly
We need to determine the present value of option 2.
First, we need to calculate the future value of the investment. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= cash flow= 900
n= 4*4= 16
i= 0.08/4= 0.02
FV= {900*[(1.02^16)-1]} / 0.02
FV= $16,775.36
Now, we determine the present value:
PV= FV/(1+i)^n
PV= 16,775.36/(1.02^16)
PV= $12,219.94
It is more profitable to accept option 2. It provides the highest present value.
Gross value added (GVA) is defined as output (at basic prices) minus intermediate consumption (at purchaser prices); it is the balancing item of the national accounts' production account. GVA can be broken down by industry and institutional sector.
hope this helped, good luck <3
Even if certain conditions are met, an apartment manager cannot exclude the fair market value of free rent from his or her income. Everything that a person owns and has a value, has depreciation. Therefore, these assets should still be declared by the owner. <span />
Answer:
e. instantly redeemable coupon
Explanation:
Instantly redeemable coupon -
It is the type of coupon , which is provided along with the goods or services , the person opt for , is referred to as instantly redeemable coupon.
This coupon , can be applied easily at the time of purchase and hence can avail the given discount.
These coupons are given , in order to attract more customers and increase the production.
