The answer is :Globalization
Globalization refers to the situation when we able to integrate all of the resources and communication among all people in the world, not limited to country's border.
Globalization could only occurs after advanced technological development that allow people from other countries to make contact with one another in a fast and efficient way.
<span>This assumption is based on the reasoning that if tea sales have done well in other countries, some of which are near Asia, then they are likely to do well in an area nearby- especially if Myanmar already has a high demand for tea.</span>
That statement is true
A stated interest rate is the return of investment that is not compounded by the interest accumulation throughout the years.
In general, a stated interest rate will give us a lower amount of return compared to effective annual interest rate that compound the accumulation throughout the years,
Be open minded to other people's ideas and hear everyone's opinion. If you want a successful group everyone needs to feel that they are able to share their opinions and ideas without being harshly criticized
Answer:
1. The overall goal and/or purpose
The overall goal of this analysis is to determine if you would actually save money by purchasing the extended warranty.
2. The given information
You can calculate this by determining the present value of the expected repair costs that will be covered by the warranty and determine which is higher; the warranty or the repairs
3. A time-line for the expected repair costs covered by the warranty
- initial investment -$1,800
- cash flow year 4 = $400
- cash flow year 5 = $500
- cash flow year 6 = $600
- cash flow year 7 = $800
4. The present value for each of the repair costs
the discount rate is 7%, so the present value of each repair cost is:
- PV cash flow year 4 = $400 / 1.07⁴ = $305
- PV cash flow year 5 = $500 / 1.07⁵ = $356
- PV cash flow year 6 = $600 / 1.07⁶ = $400
- PV cash flow year 7 = $800 / 1.07⁷ = $498
- total $1,559
5. The present value of the warranty and the expected profit for the warranty company
the present value of the warranty is $1,800, so the car company is making $1,800 - $1,559 = $241 in profits by selling you the warranty
6. Your conclusion
You shouldn't buy the extended warranty (negative NPV)