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Finger [1]
3 years ago
11

Baxter desires to purchase an annuity on January 1, 2014, that yields him five annual cash flows of $10,000 each, with the first

cash flow to be received on January 1, 2017. The interest rate is 10% compounded annually. What is the cost (present value) of the annuity on January 1, 2014
Business
1 answer:
EleoNora [17]3 years ago
8 0

Answer:

$313,288.16

Explanation:

Present value is the sum of discounted cash flows

present value can be calculated using a financial calculator

Cash flow in year 1 and 2 = 0

Cash flow in year 3 to 7 = $10,000

I = 10%

Present value = $313,288.16

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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Answer:

a) channel members.

Explanation:

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Therefore, managers direct their promotional efforts more towards channel members, so that the path that the product goes through to reach the final consumer is effective so that the product arrives in the right way, in the right quantity and at the right time to the consumer. Effective management of the company 's distribution channel helps to reduce costs, reduce delays, speed up the capacity to meet demand, increase customer satisfaction, etc.

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3 years ago
The designated market value:a. is always the middle value of replacement cost, net realizable value, and net realizable value le
eduard

Answer:

a. is always the middle value of replacement cost, net realizable value, and net realizable value less a normal profit margin.

Explanation:

As we know that inventory will be recorded at cost or market value whichever is lower. But in the given case, the replacement cost would be recorded at higher values and lesser values. Higher values represent the Net realizable value whereas the lesser values represent the net realizable value less than the normal profit margin.

And if the replacement cost lies in this range than it represents the designated market value.  

Hence, option a is correct.

4 0
3 years ago
'As fewer people buy gym memberships, the demand for running shoes will decrease and the price of a pair of running shoes will i
olchik [2.2K]

Answer: "The rise in the price of a pair of running shoes will increase the supply of running shoes".

This statement is <u><em> false</em></u> because <em><u>a decrease in demand for running shoes does not increase the price of a pair of running shoes and an increase in the price of a pair of running shoes does not increase the supply of running shoes. </u></em>

This occurs as the price of a pair of running shoes increases,therefore decreasing the demand and thus the supply will not increase.

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3 years ago
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<h2>True. The early detection of fraud avoids greater loss.</h2>

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The early detection of fraud needs to be done for the following reason:

  • Fraud will continue if not found earlier and thus leads to greater loss
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  • Easy to recover
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3 years ago
Anybody wanna zoom ?
Ne4ueva [31]

Answer:

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