Answer:
E) Annuity B has a smaller present value than annuity A.
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity and Compounding of these values is known as the future value of annuity.
Annuity paid at the start of each period is advance annuity and paid at the end of each period is ordinary annuity.
While Calculating the present value of the annuity, the Present value of advance annuity is higher than the present value of ordinary annuity.
Answer:
Explanation:
Fixed costs - will remain similar no matter of output amount
Variable costs - vary with the change in output
Average cost=(Fixed cost(FC) + Variable cost(VC))/number of units produced
VC = VC per cup of coffee served *cup of coffee served in a week
Total Cost(TC)= FC+VC
Average cost=TC/Cup of coffee served in a week
1. Let's calculate for 2000 cups of coffee:
FC remain the same! = $1200
VC=0.22*2000= $440
TC=FC+VC= 1200+440= $1640
Average cost of 1 cup of coffee= TC/#of cups=1640/2000=$0.82
2. Calculation for 2100 cups:
FC=1200
VC=0.22*2100=462
TC=1200+462=1662
Av cost=1662/2100=0.79
3. Calculation for 2200 cups:
FC=1200
VC=0.22*2200=484
TC=1200+484=1684
Av cost=1684/2200=0.77
As the number of cups increased from 2000 to 2100, the average cost per cup devreased 0.82 to 0.79. Then when number of cups increased to 2200, average cost decreased to 0.77. The reduction is due to the variable cost
Answer:
The correct answer is letter "A": plan risk responses.
Explanation:
Plan risk responses refer to the process in which a team is facing a problematic situation and to reduce threats reacts immediately identifying the opportunities available they have that could lead to a solution. To achieve that, risk management and register will be necessary.
Answer:
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