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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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The relationship between employer and employee can be thought of in terms of a(n) ____, a description of what an employee expect
nydimaria [60]

Answer:

The answer is: psychological contract

Explanation:

Psychological contracts are the expectations or promises exchanged between the parties; employer, employee, or even fellow employees, in an employment relationship. They are not written contracts, but they often implicit or understood between the parties. For example, an employee expects that if he or she works really hard, eventually he or she will receive a promotion or a salary raise.

8 0
3 years ago
1. Under the system of awarding damages for bodily injury, death, or damage to property based upon the negligence of a driver, v
svetlana [45]

Answer:

Pay

Explanation:

Auto liability insurance helps offset the costs of bodily injuries and property damages to the other driver. The principle applies if you are the one at fault in the of an accident.

Auto liability insurance coverage is mandatory by law. It covers the medical expenses of the other party. In some circumstances, it may cover lost wages and legal fees in case the other party files a lawsuit. It also covers the repair or replacement cost of the other drivers' car.

4 0
4 years ago
A major distinction between a conventional bank and an Islamic bank is that Islamic banks Group of answer choices are supposed t
yuradex [85]

Answer:

cannot pay or charge interest

Explanation:

Islamic banks do not charge interest. The banks are based on Sharia law. Islamic banks make a profit through equity participation.

I hope my answer helps you

5 0
3 years ago
Which expense category will most likely be changed to allow money for the purchase of a car?
Ivan
<h2>Reducing the "Entertainment " will hold good for the given scenario</h2>

Explanation:

There things which a man needs like food, water, shelter, etc.

Savings : This aspect is necessary for helping us in crucial point. It can serve as an another hand on demand.

Groceries : This is most important component of every men and women for living. So it cannot be reduced.

Utilities : This is equally important.

Entertainment : This shows luxurious aspect and not a mandatory one. So the amount spent in this category should be reduced.

7 0
3 years ago
__________________-- stresses that in some cases, countries specialize in the production and export of particular products not b
maxonik [38]

Answer:

New Trade Theory

Explanation:

New Trade Theory explains one reason why some countries specialize in specific industries for factors other than natural resources, quantity of labor force, or comparative advantage.

This reason is that some industries can only support a limited number of firms around the world. An example of this is the aeronautic industry, which only has a few players, with two giant firms dominating above all others: Boeing (US), and Airbus (Europe).

While the United States and the European Union can specialize in making planes through their respective giant companies, most other countries in the world cannot do so: they neither have the techology, nor the expertise, nor the capital to create a successful competitor for Aribus or Boeing. It is not even clear if the market needs or would support a third industry giant either.

3 0
4 years ago
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