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Oksi-84 [34.3K]
3 years ago
10

Your uncle offers you a choice of $112,000 in 10 years or $51,000 today. Use Appendix B as an approximate answer, but calculate

your final answer using the formula and financial calculator methods. a-1. If money is discounted at 8 percent, what is the present value of the $112,000
Business
1 answer:
Ket [755]3 years ago
5 0

Answer:

the present value of the $112,000 is $51,856

Explanation:

The computation of the present value is given below:

Present Value = Amount × Present value factor at 8% for 10 years

= $112,000 × 0.463

= $51,856

hence, the present value of the $112,000 is $51,856

We simply applied the above formula so that the correct amount could come

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Answer:

aba gaba lubbu esai naue

Explanation:

7 0
3 years ago
An increase in money supply causes the real interest rate to ________ and the price level to ________ in long-run general equili
viva [34]

An increase in money supply causes the real interest rate to remain unchanged and the price level to rise in long-run general equilibrium.

Unlike partial equilibrium analysis, which only examines individual markets, general equilibrium analysis examines the entire economy. In an economy with several markets operating concurrently, general equilibrium illustrates how supply and demand interact and tend toward balance.

By attempting to demonstrate that the interaction of supply and demand will lead to an overall general equilibrium, general equilibrium theory seeks to explain the behavior of supply, demand, and prices in a large economy with several or many interacting markets.

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5 0
1 year ago
Carriage Inc., a steel manufacturing company, is planning to buy a new plant. The internal rate of return provided by the new pl
harina [27]

Answer:

Carriage Inc. should not invest in the new plant because the IRR of the project is less than its cost of capital.

Explanation:

The investment should NOT be made in the new plant because its internal rate of return is lower than Carriage's cost of capital.

In simple language since the return (IRR) that will be gotten from the new plant is LOWER than the cost (cost of capital), then the company is not making a profit if it invests in this new plant.

Generally, as a decision rule, a company should only invest when the IRR is higher than (or equal to) its cost of capital.

5 0
3 years ago
When one party breaches a contract, the other party can choose from one or more of several_____________ . Generally, a court wil
Alja [10]

Answer:

The correct answer to fill in the spaces is: remedies, law, equity

Explanation:

The effects of the breach constitute objectified mechanisms of protection of the interest of the creditor, whose functionality fundamentally depends on the fact of the breach of the contract. These mechanisms are called remedies and correspond to the rights or actions available to the creditor in case of default for the realization of their interest. In the Common Law, the term general remedies is defined as those means by which a right is executed or its violation is avoided, compensated or compensated. And, in particular, remedies for noncompliance are those rights or powers conferred by law or contract to the party affected by the breach, the exercise of which depends on the breach of the other contracting party and the concurrence of its specific factual assumption.

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3 years ago
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rodikova [14]

The correct option is C. Increased earning potential in the future. According to many education providers, increased earning potential in the future is one of the monetary benefits of attending college.

Although other benefits listed constitute part of the benefits of attending college but in terms of those that provide only "monetary benefit". Many education providers list <em>increased earning potential </em>at the top of their list among the monetary benefits of attending college. Based on this general consensus, we can conclude that option C is the most correct option.

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4 0
2 years ago
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