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iogann1982 [59]
3 years ago
13

You are evaluating a growing perpetuity investment from a large financial services firm. The investment promises an initial paym

ent of $2,176 at the end of this year and subsequent payments that will grow at a rate of 3.4 percent annually. If you use a 9 percent discount rate for investments like this, what is the present value of this growing perpetuity?
Business
1 answer:
Brilliant_brown [7]3 years ago
8 0

Answer:

the present value of this growing perpetuity is $83,692.31

Explanation:

The computation of the present value of this growing perpetuity is shown below:

present value of this growing perpetuity is

= Payment at end of this year ÷ (Discount rate - Growth rate)

= $2,176 ÷ (0.09-0.034)

= $83,692.31

Hence, the present value of this growing perpetuity is $83,692.31

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Answer:

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Neehara recently opened a premium bakery. she did not have enough savings and hence she applied for a loan to obtain the additio
algol13

This type of financing is called a mortgage loan. This is widely used in real estate business. The buyer acquires the real estate property, say a house. Without paying the full price of the house, you can apply for a loan, usually with banks. In return, you are going to allocate monthly payments to pay off the principal amount that you borrowed plus the interest of your loan until all debt pays off. Until the debt is not yet cleared, your property is declared as collateral.

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Assume that for a certain product, brand a has 15% market share, brand b has 20% market share, and brand c has 65% market share.
tiny-mole [99]
Brand B market share is now at 14%

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4 0
3 years ago
Can I Plss get some help on this
AlladinOne [14]

The law of supply illustrates all the quantities of goods that producers are willing and able to sell at every possible price.

<h3>What is the law of supply?</h3>

The law of supply states that when prices increase, the quantity supplied increases and when price falls, the quantity supplied falls. This shows that price and quantity supplied are positively related. This explains why the supply curve is positively sloped.

To learn more about the law of supply, please check: brainly.com/question/26374465

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7 0
2 years ago
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Anna007 [38]

Answer:

c.  profit center

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