Answer:
A. Take $1 million now.
Explanation:
A. If we take $1 million now the present value of the money is $1 million.
B. If we choose to take $1.2 million paid out over 3 years then present value will at 10% will be;
$300,000 + $300,000 / 1.2 + $300,000/ 1.44 + $300,000 / 1.728
$300,000 + $250,000 + $208,000+ $173,611 = $931,944
The present value of option B is less than present value of option A. We should select option A and take $1 million now.
D
Lump-sum taxes are described as regressive taxes, meaning that the more income one has, the less they pay in proportion of their income to tax. As a result, they all pay the same, which coincides with D.
Rule I is correct.
<u>Explanation:</u>
Year Cash flow Pv at 8% Discounted cash flow
0 100000 1 100000
1 26000 0.9259 24074.074
2 26000 0.8573 22290.809
3 26000 0.7938 20639.638
4 26000 0.7350 19110.776
5 26000 0.6806 17695.163
From the above calculation, the net present value is $203810.46
Option 1 Option 2
NPV 203810.5 200000
Payback 5 years 0 years
IRR No IRR No IRR
NPV (Net present value) option say that former would be selected
So, answer is Rule I only.
Answer:
Increased productivity and quality leads to consumer trust relationship that results in increase in demand and increase in the production capacity to meet the demands.
Explanation:
First when a company increases its productivity with commensurate increase in the quality of the goods produced or manufactured. The direct effect is that the consumer base of the goods increase. In other words, consumers exhibit a level of confidence in the quality of the goods, they are attracted to patronize the company and since there is increased productivity, the company is able to meet the needs of its increasing consumers.
Furthermore, once the consumers are attracted and the company is able to meet demands, more consumers are also eager to join in purchasing the product, hence, the company is then required to increase its production capacity to meet the demands of its ever increasing customers.
<u>Why?</u>
The ability of a company to produce consistently quality goods and also meet the demands of its customers lead to a trust relationship between the customers and the manufacturer and such a relationship provides a solid platform for a continuous increase in consumer base that will warrant an increase in production capacity to accommodate more demands.
Answer:
lol i knew it then had to do something and forgot
Explanation:
