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Nitella [24]
3 years ago
8

Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You nee

d money today to start a new business, and your uncle offers to give you $156,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment
Business
1 answer:
sleet_krkn [62]3 years ago
7 0

Answer: 2.72%

Explanation:

An annuity is a series of payments that is made at equal intervals. Examples are monthly home mortgage payments, regular deposits to a savings account, pension payments.

Number of payment period (NPER) = 12 years

Payment per period (PMT) = $15000

Amount needed, PV = $156000

The formula for an annuity is calculated as:

P = PMT x ((1 – (1 / (1 + r) ^ -n)) / r)

= Rate(12,15000,-156000,1)

Rate = 2.72%

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The city of​ Belgrade, Serbia, is contemplating building a second airport to relieve congestion at the main airport and is consi
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Answer:

Alternatives                                          Airport at X Airport at Y

Buy land at X                                                 6             -14

Buy land at Y                                               -21             12

Buy land at X and Y                               -15                 -2      

Do nothing                                                 0              0

probability                                                   0.55              0.45

Payoff if you buy land at X = (0.55 x 6) + (0.45 x -) = -3

Payoff if you buy land at Y = (0.55 x -21) + (0.45 x 12) = -6.15

Payoff if you buy land at X and Y = (0.55 x -15) + (0.45 x -2) = -9.15

Payoff for doing nothing = 0

The best option is simply doing nothing. The risks are too high, the potential losses are very large and the benefits are really low.

4 0
3 years ago
Friends, a convenience store, has recently begun to redesign and restock its stores to offer a more upscale environment with hig
maksim [4K]

Answer:

E. Positioning

Explanation:

Positioning deals with what organizations should do in order to sell its product and services to consumers. Positioning indicates an organization's product or service place in the mind of consumers. It is aimed at putting the product or services in the mind of the consumers. By redesigning and restocking the store to offer lre upscale environment with higher quality product, Friends had changed its positioning.

5 0
4 years ago
Neither tom ________ manny has emailed the document to jerusha.
allochka39001 [22]

Neither tom nor manny has emailed the document to jerusha.

<h3>What is email?</h3>

Email contains information or message that is sent electronically.

Neither agrees with nor in a sentence as they both act as conjugate and this means neither of the two emailed Jerusha.

Therefore, Neither tom nor manny has emailed the document to jerusha.

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2 years ago
Companies typically like to design scorecards that fit their business and industry. As a result, there are software applications
olchik [2.2K]

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a. Performance dashboards

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Based on the scenario being described within the question it can be said that these scorecard applications are often referred to as Performance Dashboards. These are a type of management tool that companies use in order to measure the company's performance and monitor/manage different processes in order to achieve business goals. These systems are many times offered by other companies and linked to a firm's enterprise software system for customized results.

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According to the definition of market value, what should an appraiser do if there are special or creative financing terms presen
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According to the definition of market value an appraiser should ignore the concessions, complete the appraisal, and select appropriate comparables if there are special or creative financing terms present for the subject property.

<h3>What is market value?</h3>
  • The price at which an asset would trade in a competitive auction environment is known as its market value, or OMV.
  • Despite the fact that these phrases have different meanings under various standards and can have variations in some situations,
  • market value is frequently used interchangeably with open market value, fair value, and fair market value.
  • You would multiply the total number of outstanding shares by the current share price to determine a company's market value.
  • If ABC Limited, for instance, has 50,000 shares outstanding at a price of $25 apiece, its market value would be $1.25 million (50,000 x $25).

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7 0
2 years ago
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