The Present Value is $335,539.75
This is a form of an annuity. The present value of an ordinary annuity can be computed as follows -
PV = A * 1 - 1 / (1 + r)n / r
where
A = annual revenue or annuity,
r = rate of interest,
n = no. of years
PV = 65000 * 1 - frac 1 / (1+0.0825)^7 / 0.0825 = 335,539.746942
or, Present value = $335,539.75
Also known as Recurring Revenue. Revenue that flows in at regular intervals during the year – typically, on a monthly basis.
Learn more about Recurring Revenue here: brainly.com/question/14317614
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Answer:
imports exceed exports by $50 billion.
Explanation:
Calculation to determine how much imports exceed exports
Gross Domestic Product $1.2 trillion
Less Consumption ($690 billion)
Less Investment ($200 billion)
Less Government spending ($260 billion)
($1.2 trillion-$690 billion-$200 billion-$260 billion)
Then:imports exceed exports by $50 billion
Answer:
391 F
Explanation:
Calculation to determine what The spending variance for vehicle operating cost in December would be closest to
Using this formula
Spending variance for vehicle operating cost = Flexible budget-Actual
Let plug in the formula
Spending variance for vehicle operating cost= (333*17+3,030)-8300
Spending variance for vehicle operating cost=(5,661+3,030)-8,300
Spending variance for vehicle operating cost=8,691-8,300
Spending variance for vehicle operating cost=391 F
Therefore The spending variance for vehicle operating cost in December would be closest to
391 F
Answer:
Oligopoly
Explanation:
is a market structure where a market is shared by a small number of producers or sellers.
-The colas market has only two main players, 
and pepsi.
-Since they are selling a homogenous product, they can gain control over price but always have to consider their actions before doing so
-Usually, a change in their product price will reflect a certain kinked demand curve.
Answer and Explanation:
The computation is shown below:
a. For expected return
As we know that
Expected return = Probability × Rate of return
The same formula applies for all of the given stock
For Boom it is
= 0.4(0.21) + 0.4(0.36) + 0.2(0.55)
= 0.33
For Normal it is
= 0.4(0.17) + 0.4(0.13) + 0.2(0.09)
= 0.13
For Bust
= 0.4(0.00) + 0.4(-0.28) + 0.2(-0.45)
= - 0.20
So, the expected rate of return is
= 0.25(0.33) + 0.60(0.13) + 0.15(-0.20)
= 0.1305
Now the variance is
= 0.25 × (0.33 - 0.1305)^2 + 0.60 × (0.13 - 0.1305)^2+ 0.15 × (-0.20 – 0.1305)^2
= 0.053
Now the standard deviation is
= [0.053]^1/2
= 0.23
b. Risk premium is
= E(Rp) – Rf
= 0.1305 - 0.038
= 0.0925
c. Expected real return is
= 0.1305 - 0.035
= 0.0955
The Expected real risk premium is
= risk premium - inflation rate
= 0.0955 - 0.035
= 0.0605
We simply applied the above formulas
