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Butoxors [25]
3 years ago
5

A company would like to invest in a capital budget project that will be worth $500,000 in 40 years. How much should this company

invest today, assuming an average inflation rate of 2% and a 10% annual return
Business
1 answer:
egoroff_w [7]3 years ago
8 0

Answer:

Company needs to invest amount = $23000

Explanation:

Below is the calculation of the present value:

Given the future value, FV = $500000

Number of years, n = 40 years

Real interest rate = 10% - 2% = 8%

Present value = ?

Present value = FV (P/F, r, n)

Present value = $500000 (P/F, 8%, 40)

Present value = $500000 (0.046)

Present value = $23000

Company needs to invest amount = $23000

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Suppose all the producers sell toasters through Wal-Mart, and WalMart lets producers choose from 2 options. With Option A, a pro
Marta_Voda [28]

Answer:

see explaination

Explanation:

1. A low-quality producer will not provide any warranty, because he knows there will be more warranty claims.

He will choose option B.

Example:

Option B:

Toaster sell 100

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Profit = $100 (let's say it costs him $9 to make it).

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Profit = -$90 (let's say it costs him $9 to make it).

2. A high-quality producer will provide any warranty because he knows there will be very very few warranty claims.

He will choose option B.

3. Yes, the act of offering free warranty will go a long way in conveying a positive signal to customers that the brand is providing quality product & it trusts its product.

3 0
4 years ago
Describing a former job as a positive experience will reflect badly upon you.<br> t/f
muminat
False. If you say that you have had a positive work experience, it will seem as though you are skilled in that field.
7 0
3 years ago
Read 2 more answers
Samuel assists his clients in investing in the stock market. He not only acts as an agent by buying and selling corporate stocks
givi [52]

Answer:

Samuel plays the role of a securities broker.

Explanation:

A securities broker has the function of being the link between the investor and the global financial markets. The broker helps guide the client to make the best investment decisions in the market.

In addition to advising its clients, the securities broker is responsible for buying and selling the shares of its client. To be a securities broker, you must have higher studies in administration, economics, or finance, also have completed the preparation to work as a broker.

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

8 0
3 years ago
Cinnamon Corp. started business in 2007, uses a periodic inventory system and uses the weighted average cost method. During 2007
Nesterboy [21]

Answer:

€4,883,000

Explanation:

The computation of cost of sales is shown below:-

Inventory = 35,000 ÷ €12

= 2,917 units

Weighted average cost of inventory

= (2,917 × €12) + (35,000 × €14)

=  €35,004 + €490,000

= €525,004

So weighted average cost = €525,004 ÷ €40,833.33

= €12.85

So, cost of sales = weighted average cost × sold units

= €12.85 × 38,000

= €4,883,000

3 0
4 years ago
A detailed description of the money your business makes and expends every month for the first year is called a(n) A cash-flow st
Oksana_A [137]

Hello there,

A detailed description of the money your business makes and expends every month for the first year is called a(n)

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6 0
3 years ago
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