Answer:
Option d. What cost $100 in 1982 will on average cost $350 more.
Explanation:
This is because when a base is set the initial value is 100, and at any moment this base can be compared with the current value by subtracting the base and then dividing it by the base again. With this exercise, you will get the number of times that the base has changed in time. In this example, in 2008 the CPI was 450, computing: 450-100=350/100=3.5 In dollar in 1982 is equal than 3.5 in 2008, or the same than option d
Answer:
$36
$6466
Explanation:
For each 1 dollar increase, 5 fewer cars are rented. If y is added to the daily rate. They will rent 210 - 5y at 30 + y dollars.
Hence 210 - 5y × 30 + y = income.
F(y) = 210 - 5y × 30 + y
F(y) = 6300 + 210y - 150y -5y^2
F(y) = -5y^2 + 60y + 6300
To maximize income, we get the first derivative
F(y) = -5y^2 + 60y + 6300
F'(y) = -10y + 60
-10y + 60 = 0
10y = 60
y = 6
Therefore, the should increase their rate by $6, hence they should charge $36.
To find max income, put 7 into y
F(y) = -5×7^2 + 60×7 + 6300
= -254 + 420 + 6300
= $6466
Max income = $6466
Answer:
The present value of the cashflows will be $12830.30
Explanation:
The present value of the cashflows can be calculated by dividing the cash flows by the appropriate discount rate and for the appropriate time period.
The present value of the given cash flows will be,
Present Value = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n
As the first payment is received today, it will already be in the present value so it will not be discounted.
Present value = 2000 + 3000 / (1+0.1) + 5000 / (1+0.1)^3 + 7000 / (1+0.1)^5
Present value = $12830.295 rounded off to $12830.30
Answer: Option A
Explanation: In simple words, firms stock refers to the securities that a company has issued for gaining funds for operations. Prices of such securities are highly fluctuating and changes as per the prospects and existing economical conditions.
A rise in prices of the stock indicates that the returns for the stock will be going to increase in future and thus can happen only if the investors are expecting high profits in coming period.
An expansion of business opens new opportunities for the firm in market and increasing their profits proportionately leading to increase in stock prices.
Hence the correct option is A .
This shift in demand was likely the result of the improved technology of MP3 players.
Improved technology brought improved quality of MP3 players, which meant that more people were interested in buying them. MP3 players are far more convenient than CD players, because they are smaller, more easily portable, and overall better.