1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rudiy27
3 years ago
14

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:

Business
1 answer:
kherson [118]3 years ago
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>

You might be interested in
What is a bell attendant?
garri49 [273]
A bell attendant is someone who greets people when they are checking in and out of a hotel. They open doors, carry luggage, park cars, call cabs, and things like that.
8 0
3 years ago
Ok, I actually need a lot of help- 30 points to whoever can
Olin [163]

Answer:

I would say that the answer is "recording information about a fraudulent business".

Explanation:

His job is to make sure that consumers are treated fairly.

4 0
2 years ago
When making additional business decisions management should consider?
Delvig [45]
Maybe how long you’re willing to be committed to that certain job or your goals in life so they are able to take you seriously.

This is just a guess btw but I hope this gave you an idea. :)
8 0
3 years ago
Name three primary sources of authority that tax professionals should check against the citator before relying on those sources
soldi70 [24.7K]

Answer:

The three primary sources of authority that tax professionals should check against the citator before relying on those sources for important matters are;

1. Revenue procedures

2. Revenue rulings

3. Judicial decisions

Explanation:

A citator can be defined as an index of legal resources that allows the researcher to find newer documents of the original document and thus the history of statues and cases can be reconstructed. This has been collectively termed as shepardizing. There are different kinds of citators depending on the type of case one is handling. In our case, we are dealing with tax professionals. Tax professionals deal with three primary sources of authority that tax professionals should check against the citator before relying on those sources for important matters. These primary sources are; revenue procedures, revenue rulings and judicial decisions. They are further elaborated below;

1. Revenue procedures

A revenue procedure is a set of guide that give direction on how to apply law, regulations and rulings. They majorly give direction on matters involving tax.

2. Revenue rulings

A revenue ruling is an order directly from the Internal Revenue Services (IRS) that has the full backing of the law and therefor enforceable. Such rulings on revenue, give direction on how the IRS understands the tax laws. Since the IRS is an authority constituted by top-level tax professionals, a revenue ruling can be used by other tax professionals to cite cases of similar nature.

3. Judicial decisions

Judicial decisions is a statement of advice written by a judge or a panel of judges that serves as a guide in solving a legal dispute. They involve a written legal opinion that tends to justify how and why they arrived to that conclusion to solve the dispute. The same thinking can be used by other professionals in other disputes of a similar nature to solve them.

3 0
3 years ago
Roger is currently in the hospital, having been diagnosed with terminal cancer. Roger would like Kim, a close friend, to make an
Kisachek [45]

Answer:

The correct answer is letter "E": a durable power of attorney.

Explanation:

A power of attorney is a document stating another party is legally right to act on an individual's behalf. As soon as the individual is capable to handle business, the power of attorney loses validity.  

A durable power of attorney, instead, is used when the individual delegating power to another party has knowledge of being impaired soon and possibly is not going to recover. Thus, the durable power of attorney will be valid since the individual cannot handle business until the moment of his or her decease. During that time, the selected party is right to make health and finance decisions on behalf of the individual.

5 0
3 years ago
Other questions:
  • A competitive market is in long-run equilibrium. if demand increases, we can be certain that price will
    9·2 answers
  • Put each of them in Order.
    9·1 answer
  • Wherry Furnishings uses job order costing. The company has a contract to deliver furniture to a hotel. The hotel has 60 basic ho
    15·1 answer
  • Hubert: Demand decreased, but it was perfectly inelastic. Kate: Demand decreased, but supply was perfectly inelastic. Manuel: De
    13·1 answer
  • 16. Which of the following statements about capital budgeting is correct? A. The timing of cash flows is irrelevant in capital b
    15·1 answer
  • The following transactions are for Kingbird Company.
    9·1 answer
  • You are considering the acquisition of XYZ Enterprises. You have made the following projections for XYZ for years 1-5 ($ million
    7·1 answer
  • Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash op
    6·1 answer
  • It Isn't necessary to consider convenlence Issues when selecting a bank.<br> O True<br> O False
    5·2 answers
  • A planned process for providing financial information that will be useful to management.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!