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umka2103 [35]
3 years ago
5

Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,200, $10,200, and

$16,400 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 14 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.
Business
1 answer:
ddd [48]3 years ago
7 0

Answer:

= $23,479.51

Explanation:

<em>The value of the investment is the sum of the present value of the future cash flows discounted at 14%.</em>

<em>                                                PV</em>

Year 1     5,200× 1.14^(-1) =  4,561.40

Year 2    10,200 × 1.14^(-2) =  7,848.57

Year 3    16,400 ×  1.14^(-3) =  11,069.53

Total amount willing to be paid

= 4,561.40 + 7,848.57 + 11,069.53

= $23,479.51

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Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, an
liq [111]

Answer:

Geographic location.

Explanation:

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Types of market segmentation:

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-Geographic. Target customers based on a predefined geographic boundary. Differences in interests, values, and preferences vary dramatically throughout cities, states, regions and countries.

8 0
3 years ago
What are the four broad characteristics used to classify retail​ stores?
Mnenie [13.5K]
<span>The four characteristics used to classify retail stores are: the type of merchandise sold; the variety and assortment of merchandise sold; the level of customer service; the price of the merchandise. For example, we know that Whole Foods and Aldi are both grocery stores. However, Whole Foods provides different types of merchandise and provides a different level of customer service, as they focus on organic and healthy foods and their employees bag groceries. Aldi, on the other hand, focuses on cheaper foods without much heed to organic or health materials, and they do not bag groceries.</span>
6 0
3 years ago
&lt;1 and &lt;2 are supplementary angles. m&lt;1=113° degrees. find m&lt;2?
elena-s [515]
Supplementary angles equal 180 degrees.

180-113= 67

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I hope this helps!
~cupcake
7 0
3 years ago
Scarcity of a key resource or input into the production process
vladimir2022 [97]

Scarcity reduces the producer's ability to manufacture a limitless number of goods, thus limiting output.

<h3>What is the production process?</h3>

Producers may have to make the difficult decision of which product to prioritize for manufacture out of a variety of items using limited resources.

Overall, a lack of resources or manufacturing inputs results in a smaller number of goods or services available on the market, which has an impact on customers by forcing them to make difficult purchasing decisions.

Therefore, when something is scarce, more people want it than can be supplied.

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5 0
2 years ago
The inflation rate in Great Britain is expected to be 4% per year, and the inflation rate in Switzerland France is expected to b
VladimirAG [237]

Answer:

The spot rate in two years time = SF 12.99

Explanation:

The purchasing power parity states that the relationship between the current and future spot rate between two currencies can be linked to the differences in the expected inflation rate between the currency.

This relationship can be expressed as follows:

S1=  So× (1 + hc)/(1 + hb)

So= Current spot rate, Hc- inflation rate in Switzerland, Inflation rate in Britain

Spot rate in a year's time

S1= 12.50, Hc=6%, Hc=4%

S1= 12.50× (1.06/1.04)

S1=12.74

Spot rate in two year's time

S1= 12.74× (1.06/1.04)

S1= 12.99

The spot rate in two years time = SF 12.99

5 0
3 years ago
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