Answer:
FV= $94,108.42
Explanation:
<u>First, we need to calculate the future value of the 12 annual deposits:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {3,500*[(1.06^12) - 1]} / 0.06
FV= $59,044.79
<u>Now, the future value at the end of the 20 years (8 years more):</u>
FV= PV*(1 + i)^n
FV= 59,044.79*(1.06^8)
FV= $94,108.42
I believe the answer is: B. <span>businesses making the same product agree to limit production.
In a monopoly, only one single business exist that control the production of a certain goods in the market.
For cartel, there are a lot of established businesses with different ownership, but they agreed to control their production in order to maintain the price level in the market.
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Answer:
correct option is b. $167
Explanation:
given data
free cash flow FCF 1 = -$10 million
t = 1
free cash flow FCF 2= $20 million
t = 2
FCF grow rate = 4%
average cost of capital = 14%
to find out
what is the firm's value of operations
solution
first we get here firm value in year 2 that is express as
firm value in year 2 = expected FCF in 3 ÷ (cost of capital - growth) .........1
put here value
firm value in year 2 = 
firm value in year 2 = 208 million
and
firm value of operation this year will be as
firm value = discounted value in year 2 + discounted FCF1 and FCF2 .............2
firm value = 
firm value = 166.67 = 167 million
so correct option is b. $167
Answer:
Option (C) is correct.
Explanation:
Lorenz curve is a graphical representation of percentage of total national income on the y-axis and percentage of total population. This curve shows us the degree of inequality of income distribution. It is one of the crucial measure of poverty.
In a inequality income distribution graph, there is a straight diagonal line at 45 degree angle and the Lorenz curve. The larger the difference between these two curves, the larger will be the inequality in the income distribution.
