False.
The business wants to upgrade the phone system, not rebuy the same one.
Answer:
the indifference between receiving $250 today or is $235.85
Explanation:
The computation of the indifference between receiving $250 today or is shown below:
Here we determine the present value
= Amount ÷ (1 + risk free rate of interest)
= $250 ÷ (1 + 0.06)
= $250 ÷ 1.06
= $235.85
Hence, the indifference between receiving $250 today or is $235.85
The same is relevant and considered too
Answer:
$69.08
Explanation:
Calculation to determine the current share price?
First step is to determine the price of the stock in year 9
P9=$14/(.115− .039)
P9=$14/0.076
P9=$184
Now let determine the Current price
P0=184.00/(1+.115)^9
P0=184.00/1.115^9
P0=184.00/2.6636
P0=$69.08
Therefore the current price is $69.08
The outcome that is expected is that the students would purchase more than 750 cups per day. This is a good selling strategy because it raises the belief that they are buying more and it is cheaper. The result is that the business will have better outcomes and the incomes will increase. Not to mention that the clients will prefer same quality of cofee for a "cheaper" price.