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Troyanec [42]
3 years ago
9

Discounting A. A concept that maintains that the owner of a cash flow will value it differently, depending on when it occurs.

Business
1 answer:
uranmaximum [27]3 years ago
3 0

Answer:

PMT x {[(1 + r)^n – 1]/r}

Explanation:

The formula for calculation the future value of an ordinary annuity is given as :

PMT x {[(1 + r)^n – 1]/r} ;

Where ;

PMT = Payment amount ; r = discount rate

n = number of payments

For ordinary annuity, payment are made at the end of each period as opposed payment made at the beginning of the period for annuity due.

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Suppose Germany, a large country, imposes a tariff on tuna imports. Before the tariff, all the countries in the world are engage
Ede4ka [16]

Answer:

1. This is true.

The Germans will pay a higher price for tuna because the tariff will increase the price of imported tuna and the reduction in completion with the local producers will lead to higher prices as the local producers take up their price.

2. This is true.

German producers no longer have to compete as much with imported tuna which was cheaper. They will therefore be able to raise their prices.

3. This statement is false.

The world price of Tuna DOES NOT increase because the tariff is only applicable in Germany. Other parts of the world will trade tuna as before. This is what is assumed.

4. This statement is true.

If Vietnam was exporting tuna to Germany, they will become worse off because they will see a decline in demand for their tuna on account of the tariffs making the tuna more expensive.

5. This is false.

Vietnamese tuna consumers will still pay the same price to get tuna because Vietnam produces the tuna. It is Vietnam's producers that will suffer not the consumers.

5 0
3 years ago
The current futa tax rate is 0.8%, and the suta tax rate is 5.4%. both taxes are applied to the first $7,100 of an employee's pa
Goryan [66]
The given values in the problem are enumerated below:
futa tax rate = 0.8%
suta tax rate = 5.4 %
Employee's fee = $7,100
Amount taxes = $7100 *(0.008+0.054)= $440.2

When an employee earned total wages of $9100, we can solve the unknown:
Employee's wages =  $9100 + $440.2
Employee's wages = $ 9540.2

3 0
3 years ago
Is it ethical for large companies to market small brands as being local, natural, or eco-friendly when they are in fact owned by
klio [65]

Answer:

yes

Explanation:

companies will not yell the truth

3 0
2 years ago
Assume that Verizon Communications, Inc. reports the following selected balance sheet and income statement information for 2012
GalinKa [24]

Answer:

TIE 6.26238

Explanation:

Times Interest Earned:

\frac{EBIT}{Interest \: Expense} = 6.26238

EBIT = earnings before Interest and Taxes

\frac{13,652}{2,180} = 6.26238

4 0
3 years ago
You are the CFO of a major pharmaceutical firm. A division manager has presented senior management with an investment opportunit
DochEvi [55]

Answer: $2.1 million

Explanation:

It is mentioned the project is independent of the outcome of general market  which means that

=> beta = 0

Using the CAPM formula which is,

r=rt + B* (rm -rf)

=> r = 3% + 0*(12%-3%) = 3%

Expected value of Project in one year = $1 billions * 0.1

Expected value of Project in one year = $100 millions

NPV = Expected value of Project in one year/ (1 + 0.03) - Initial cost

NPV = 100/ (1 + 0.03) - 95

NPV = 97.1 - 95

NPV = $2.1 million

4 0
3 years ago
Read 2 more answers
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