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gulaghasi [49]
3 years ago
10

A series of five constant-dollar (or real-dollar) uniform payment of $897.63 is made begining at the end of first year. Assume t

hat the general inflation rate is 18.3% and the market interest rate is 18.3% during this inflationary period.
The equivalent present worth of the series is:_________.
Business
1 answer:
Vinil7 [7]3 years ago
8 0

Answer:

The equivalent present worth of the series is $4,182.21

Explanation:

Fix periodic payments for a specific period of time are annuity payment and the payments made at the start of each period is known as advance annuity.

As per given data

Inflation per year = 18.3% / 5 = 3.66%

numbers of period = 5 years

Payment per period = $897.63

Use following formula to calculate the present value of annuity payments

PV of annuity = P x ( 1 - ( 1 + r )^-n / r

Where

P = Payment per period = $897.63

r = rate in of interest = 3.66%

n = numbers of periods = 5 years

Placing values in the formula

Equivalent present worth of the series = $897.63 + $897.63 x ( 1 - ( 1 + 3.66% )^-(5-1) / 3.66% )

Equivalent present worth of the series = $4,182.21

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Discuss how either good or poor quality affects you personally as a customer. Give specific examples and describe an experience
lys-0071 [83]

Answer:

Quality is the perhaps the most desired thing in a good or service, however, sometimes, as customers, we have to compromise on quality for a cheaper price.

Personally, I look for quality when I buy a laptop. I have had four laptos in my life. Two of those laptops were HP, and the two other were Lenovo.

I had a good experience with my first HP laptop, so I bought another one years later. That second HP had many technical issues only a few months after the purchase, and a year later I ended up buyina new Lenovo laptop.

That first Lenovo lasted for over 4 years until I replaced it for a new one.

In this case, the lack of quality I have personally experienced with HP has made me ditch the brand altogether.

4 0
3 years ago
Griffin goat far inc has sales of 666000, depreciation expense of 72000, interest expense of 46000, nad a tax rate of 24 percent
Helen [10]

In a condition where Griffin Goat Far Inc., has sales of 666000, depreciation expense of 72000, interest expense of 46000, and a tax rate of 24 percent, the net income of this firm will be $416,480.

<h3>What is the significance of net income?</h3>

The net income can be referred to or considered as the surplus difference between the gross income and the expenses plus taxes of an organization for a given period.

Using the given information, it can be interpreted that,

Net Income = 666,000 – (72,000 + 46,000) – 24%

Net Income = 666,000 – 118,000 – 24%

Net Income = 548,000 – 24%

Net Income = $416,480

Therefore, the significance regarding the net income has been aforementioned.

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6 0
1 year ago
Distinguish between planned economy and mixed economy?​
Anettt [7]

Answer:

CHECK THE EXPLANATION.

Explanation:

A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, participatory or Soviet-type forms of economic planning whereas a mixed economy is an economy organized with some free market elements and some socialistic elements, which lies on a continuum somewhere between pure capitalism and pure socialism. ... Mixed economies socialize select industries that are deemed essential or that produce public goods.

4 0
2 years ago
A firm practicing unrelated diversification can make better capital allocations to its subsidiary businesses than the external c
Maslowich

Answer: C. the firm can acquire other firms with innovative products instead of allocating capital to research and development

Explanation:

Unrelated Diversification is regarded as a diversification which takes place when a company adds an unrelated product to its business. For example, when an television manufacturer enters into a clothing business.

A firm practicing unrelated diversification can make better capital allocations to its subsidiary businesses than the external capital market can for all the following reasons except when the firm can acquire other firms with innovative products instead of allocating capital to research and development.

7 0
3 years ago
JUJU's dividend next year is expected to be $1.50. It is trading at $45 and is expected to grow at 9 percent per year. What is J
Kisachek [45]

Answer:

3.33%; 9%

Explanation:

Given that,

Expected dividend next year = $1.50

Trading at = $45

Expected growth rate per year = 9 percent

Dividend yield = (Expected dividend next year ÷ Trading amount) × 100

                        = ($1.50 ÷ $45) × 100

                        = 0.0333 × 100

                        = 3.33%

The capital gain of JUJU is same as the expected growth rate i.e 9 percent.

5 0
3 years ago
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