Answer:
$21,370.1071
Explanation:
The computation of the present value of this perpetuity is shown below:
= The present value after five years + present value on the date of purchase
where,
The present value after five years is
= ($1,000) ÷ (1.04)^5
= $821.9271
And, the present value on the date of purchase is
= $821.9271 ÷ 4%
= $20,548.18
Hence, the present value of the perpetuity is
= $821,.9271 + $20,548.18
= $21,370.1071
Answer:
Option (a) is correct.
Explanation:
Given the marginal utility per dollar for the two products as follows:
All the individuals wants to maximize their utility that is obtained from the consumption of goods. We can see that marginal utility per dollar of product A is higher than the marginal utility per dollar of product B which means that this consumer should purchase more quantity of product A and less quantity of product B.
It is going on until the point at which marginal utility per dollar of both the products becomes equal.
Answer:
B. Liquidation.
Explanation:
Liquidation is and aftermath of the inability of a company or establishment to meet up with her obligations at the required moment. Thus, the company folds-up, lay off her staff and stop operating. While reorganization is a form of restructuring in a company or establishment. It may involve change of positions and duties among capable staff.
The example in the given scenario is that of liquidation because it ceased from operation.
Answer:
A & C are correct
Explanation:
Payback period is a capital budgeting technique used to determine the number of years it would take a project cash inflows to fully recover the initial amount invested. Since it involves basic addition of subsequent expected cash inflows to determine at what point in time the balance changes from negative to positive ,regular payback period does not take into account the time value of money.
Additionally, payback period determination ignores future cashflows after the balance has changed from negative to positive. Due to this reason, it does not take into account the project's entire life.
