GOVERNMENT SUBSIDIES are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries.
Government subsidies are assistance given by the government to a person or a group of individuals in support of an enterprise that is for the public interest.
Answer:
A. $19,034
Explanation:
The computation of the present value for 20 years cash flow is shown below:
For the First 10 years
Given that
Payment for first 10 years = $2,000
Discount rate = 11%
Now the present value is
= $2000 ÷ 1.11 + $2,000 ÷ 1.11^2 +...........+ $2,000 ÷1.11^10
= 11,778.46402 ..............(1)
For the Next 10 years
Given that
Payment for next 10 years = 3,500
Discount rate = 11%
Now the present value is
= $3,500 ÷ 1.11 + $3,500 ÷ 1.11^2 +...........+ $3,500 ÷ 1.11^10
= 20,612.312
So, today present value is
= $20,612.312 ÷ 1.1110
= 7,259.339 ...........................(2)
Now
Total present value is
= $7,259.339 + $11,778.46402
= $19,034
Having a good credit score
<span>Burj Khalifa was designed to be the centerpiece of a large-scale, mixed-use development that would include 30,000 homes, nine hotels, 3 hectares (7.4 acres) of parkland, at least 19 residential towers,and the 12-hectare (30-acre) man-made Burj Khalifa Lake.</span><span>The decision to build Burj Khalifa is reportedly based on the government's decision to diversify from an oil based economy to one that is service and tourism based. According to officials, it is necessary for projects like Burj Khalifa to be built in the city to garner more international recognition, and hence investment. wanted to put Dubai on the map with something really sensational," said Jacqui Josephson, a tourism and VIP delegations executive at Nakheel Properties</span>
