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3 years ago

The impact of interest rate changes in the PV of $100 due in 20 years compared to the PV of $100 due in one year are:

1 answer:

8 0

Answer: c. greater because interest rate changes have a greater impact on distant cash flows than near-term cash flows.

Explanation:

Interest rate changes have a greater impact on distant cashflows because those cashflows will be exposed to the interest rates for longer. This means that they will be subjected to more discounting than a cashflow that is due in one year which would be subject to only a single year of discounting.

For instance, assume the required rate of return for two investments is 10%. One investment yields $10,000 in 20 years and another yields $10,000 in 2 years .

The present value of both are:

= 10,000 / (1 + 10%)²⁰ = 10,000 / ( 1 + 10%)²

= $1,486.43 = $8,264.46

<em>Notice the difference. The longer term investment was more exposed to interest rate effects. </em>

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Copy equipment was acquired at the beginning of the year at a cost of $56,000 that has an estimated residual value of $8,000 and

sergeinik [125]

Answer:

Results are below.

Explanation:

<u>The depreciable cost is the result of deducting from the purchase price the salvage value:</u>

<u></u>

Depreciable cost= 56,000 - 8,000

Depreciable cost= $48,000

<u>The depreciable rate is the depreciation that the asset suffers in one year express as a percentage:</u>

<u></u>

Depreciation rate= 1/5 = 0.2 or 20% per year

<u>Finally, the units of production depreciation for the first year:</u>

Annual depreciation= [(original cost - salvage value)/useful life of production in copies]*number of copies

Annual depreciation= (48,000/1,000,000)*240,000

Annual depreciation= 0.048*240,000

Annual depreciation= $11,520

5 0

3 years ago

HELP PLEASE !!

Lapatulllka [165]

The answer is going to be B

5 0

4 years ago

which professionals do interest groups hire to represent them? responses lobbyists lobbyists economists economists journalists j

goldenfox [79]

Option (a) is the best choice. Interest groups pay lobbyists to serve as their representatives.

<h3>What does interest group lobbying entail?</h3>

The act of lobbying is the direct approach taken by a lobbyist to influence public figures to promote the agenda of their clientele. The National Rifle Association is an illustrative lobbying organization. Interest groups are associations of people who get together for the purpose of influencing the government.

<h3>Why would a lobbyist be employed by an interest group?</h3>

Lobbyists are employed by interest groups to sway elected authorities. Access to public figures in all areas of government is sought after by lobbyists. By informing government officials about the interests of their group and engaging in grassroots lobbying, lobbyists attempt to sway policy. Many lobbyists have prior public service experience.

Learn more about Lobbyists: brainly.com/question/509906

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7 0

1 year ago

Virtually every business has variable expenses, which move up and down in tight proportion with changes in sales volume or sales

TiliK225 [7]

Answer and Explanation:

Dynamic expenses are pointed to as operating expenses that are the production cost and important to run a business.

common example of the variable cost that depends on sales volume.

The cost of goods sold, that is the equivalent of goods sold to consumers.

Commissions charged from their selling to salespersons.

Fees charged by a company when a customer requires a credit or debit card.

so, we say that when a business increase or decrease their sale volume, their variable cost also gets affected.

3 0

3 years ago

‘An enterprise may capture value through either innovation leadership or innovation followership'. Discuss this statement with t

Gala2k [10]

Explanation:

This statement is true, due to the fact that a company to stand out in the market must have a strategy that guarantees significant advantages over its competitors, that is, the company must be prepared to have its own identity in the market that gives it value, what can be achieved through innovation.

An example of innovation leadership and followers of innovation is the case of entrepreneur Jeff Bezos, founder of Amazon, a pioneer in internet sales. It can be said that through the innovative vision that Jeff Bezos has, he managed to found a company that sold books online in 1994, a time when the internet was not so widespread and few people had access. Therefore, Bezos, through leadership in innovation, transformed his company into an empire with several different businesses, always following technological changes and people's behaviors, to always follow market innovations and keeping his company always competitive, being a world technology giant.

6 0

3 years ago