Answer:
$50.74 million
Explanation:
Interest rate per annum = 8%
Number of years = 17
Number of compounding per annum = 1
Interest rate per period (r) = 8%/1 = 8%
Number of period (n) =17 * 1 = 17
Growth rate (g) = 5%
First payment (P) = 4 ($'million)
PV of the new Chip = p/(r-g) * [1 - [(1+g)/(1+r)]^n]
PV of the new Chip = 4/(8%-5%) * [1 - [(1+5%)/(1+8%)]^17]
PV of the new Chip = 4/0.03 * [1 - [1.05/1.08]^17]
PV of the new Chip = 4/0.03 * [1 - 0.972222^17]
PV of the new Chip = 133.333 * (1 - 0.6194589804)
PV of the new Chip = 133.333 * 0.3805410196
PV of the new Chip = 50.7386757663268
PV of the new Chip = $50.74 million
Answer:
1. Commercial banks
2. Life insurance companies
3. Mutual funds
Explanation:
commercial banks
The commercial bank is a financial institution that accepts deposits and offer other services such as giving loans and other basic financial services to both individuals and organisations.
Life insurance companies
The life insurance companies are financial institutions that provide lump sums otherwise known as death benefits to beneficiaries of their policy holders upon their demise, provided that premium is paid on regular basis.
Mutual fund
A Mutual Fund is an investment vehicle made up of a pool of funds collected from numerous investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual Funds are operated by professional fund managers, who invest the fund's capital and attempt to produce capital gains and income for the investors.
One of the main advantages of Mutual Funds is they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities. Each shareholder, therefore, participates proportionally in the gain or loss of the fund.
<span>ABC, Incorporated desires to have the most qualified people in every position throughout its organization. This is an example of a concern for human capitol</span>
Annual gross potential rental income from a property minus expenses (vacancy and collection losses, operating expenses, replacement reserves, property taxes, and property and liability insurance) equals Effective gross income . This is further explained below.
<h3>What is
Effective gross income?</h3>
Generally, Effective gross incomeis simply defined as the total effective gross revenue equals potential gross income less vacancy and collection losses + other income.
In conclusion, Potential gross revenue minus vacancy and collection losses, plus other income, is equivalent to effective gross income.
Read more about Effective gross income
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ANSWER
C. DIMINISHING Returns to property/ scale
EXPLANATION
Returns to Scale is a production concept used in Long Run (when all factors are variable i.e changeable)
It denotes relative change in output when all inputs change in same proportion .
Increasing Returns to Scale : Proportionate Increase in Output > Proportionate Increase in all inputs .
Constant Returns to Scale : Proportionate Increase in Output = Proportionate Increase in all Inputs .
Negative Returns to Scale : Proportionate Increase in Output < Proportionate Increase in all Inputs .
So : If all inputs are doubled (X2) - If output increases equal i.e double (X2) , Constant Returns to Scale . If output increases more i.e triple (X3) , Increasing Returns to scale . If output increases less i.e (1.5X) , Decreasing Returns to Scale.
