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Fynjy0 [20]
3 years ago
7

To find the present value of a cash flow expected to be paid or received in the future, you will the future value cash flow by (

1 + I)N. What is the value today of a $42,000 cash flow expected to be received 17 years from now based on an annual interest rate of 7%? $20,609 $13,296 $16,620 $132,670
Business
1 answer:
wolverine [178]3 years ago
5 0

Answer and Explanation:

In order to determine the present value we should divide the future value cash flow by (1 + rate of interest)^number of years

And, the value of the today should be

= $42,000 ÷ (1 + 0.07)^17

= $13,296

Hence, the same should be considered and relevant

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The Appliance Depot realizes that many of its customers purchase several appliances at one time and may not have immediate cash
photoshop1234 [79]

Answer:

<u>Financing </u>

Explanation:

Financing refers to usage of money and funds to finance the marketing agencies and promotions, in addition to financing the movement of goods through different channels of distribution.

Retailers usually use credit schemes to induce customers such as, payment in installments with zero interest payments. Such schemes enhance sales and also build consumer trust.

In the given case, Appliance Depot offers credit services whereby customers are granted convenient payment terms such as no down payment and interest free installments. This represents the marketing function of financing wherein the retailer facilitates financing customer's purchase via such credit schemes.

5 0
3 years ago
Trevor is watching a late night TV show when a low-budget commercial for a local restaurant comes on air. He is affronted by the
tangare [24]

Answer: Peripheral route.

Explanation:

Persuasion is the ability to convince one or more people about something, to think in a certain way, or to do something in particular.

The persuasion follows two routes; the central route, and the peripheral route:

  • The central route of persuasion occurs when the person is persuaded by the message received.
  • The peripheral route of persuasion occurs when the person is persuaded by something different than the message, such as how the message is presented.

In this case, Trevor was guided by what he saw to decide, so he followed the peripheral route of persuasion.

<em>I hope this information can help you.</em>

5 0
3 years ago
In a 1988 study, Fama and French found that the return on the aggregate stock market was __________ when the dividend yield was
Lisa [10]

Answer:

A. higher

Explanation:

Fama And French did the risk factor study on stock, which clearly stated that when there is a high dividend yield then the stocks would perform good even in the market.

thus, this clearly reflects that when the market is high for stock returns then the dividend yield is also high.

This is basically the proportional reaction, as when the stock return is higher whether in terms of value addition or cash returns then only the dividend return would also be higher.

Correct option in this case will be:

A. Higher.

6 0
3 years ago
A project that costs $1,900 to install will provide annual cash flows of $500 for the next 5 years. The firm accepts projects wi
Doss [256]

Answer:

A. 3.8 YEARS

B YES

C $325.91

Explanation:

Payback period is the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.

payback period = amount invested / cash flows

$1,900 / $500 = 3.8 years

the project should be accepted because the payback period is less than the maximum acceptable year

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

cash flow in year 0 = $-1900

cash flow each year from year 1 to 5 = $500

I = 4%

NPV = $325.91

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

6 0
3 years ago
EZBiz, the brainchild of three college friends, is a startup venture that plans to produce and market sports gear. The venture i
Elden [556K]

Answer:

B) The public is wary of sharing confidential information after a recent spate of credit card scandals.

Explanation:

There are several advantages of click-only companies, especially that they are able to offer lower prices since they don't need to support the costs of brick-and-mortar stores.

But the whole idea of selling through the internet is based on the customers' trust on new technologies and they specially dislike when the new technologies fail, e.g. when a hacker discloses the accounts and passwords of millions of users.

4 0
3 years ago
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