Answer:
a-1 Present value = 6,177.39
a2- Present Value =6,227.79
a3- Choose the payment stream with the highest present value = a2
b1- Present Value=3,353.98
b2-Present Value=2,805.28
b3-Choose the payment stream with the highest present value = b1
Explanation:
a-1 describes an ordinary annuity whose present value is calculated as follows:
![Present value =PMT*\frac{[1-(1+i)^-^n]}{i}](https://tex.z-dn.net/?f=%20Present%20value%20%3DPMT%2A%5Cfrac%7B%5B1-%281%2Bi%29%5E-%5En%5D%7D%7Bi%7D)
where PMT=$800; i= 5%, n= 10
![Present value =800*\frac{[1-(1+0.05)^-^1^0]}{0.05}](https://tex.z-dn.net/?f=%20Present%20value%20%3D800%2A%5Cfrac%7B%5B1-%281%2B0.05%29%5E-%5E1%5E0%5D%7D%7B0.05%7D)
= 6,177.39
a2- ![Present value =600*\frac{[1-(1+0.05)^-^1^5]}{0.05}](https://tex.z-dn.net/?f=Present%20value%20%3D600%2A%5Cfrac%7B%5B1-%281%2B0.05%29%5E-%5E1%5E5%5D%7D%7B0.05%7D)
= 6,227.79
a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.
b1- ![Present value =800*\frac{[1-(1+0.20)^-^1^0]}{0.20}](https://tex.z-dn.net/?f=Present%20value%20%3D800%2A%5Cfrac%7B%5B1-%281%2B0.20%29%5E-%5E1%5E0%5D%7D%7B0.20%7D)
= 3,353.98
b2-![Present value =600*\frac{[1-(1+0.20)^-^1^5]}{0.20}](https://tex.z-dn.net/?f=Present%20value%20%3D600%2A%5Cfrac%7B%5B1-%281%2B0.20%29%5E-%5E1%5E5%5D%7D%7B0.20%7D)
=2,805.28
b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.
Answer: Option (a) is correct.
Explanation:
Correct Option: Panel data.
Panel data is a combination of cross sectional data and time series data. Panel data is mostly used for the regression analysis. In this type of data, one can observe multiple instances or scenarios at more than one time frame.
The information provided by this type of data can be categorized into parts:
(i) Cross-sectional Information
(ii) Time series Information
The closest to the total cost if the firm uses 6,000 machine hours is $2,945.95.
<h3>What is regression analysis?</h3>
The term regression analysis is defined as a combination of statistical methods utilised for the for the relation between a variable which is not dependent and a variable which is dependent.
The prediction errors that will be represented by vertical lines from regression line to the point.The main purpose or aim of regression analysis is to confirm the value of the variable which is dependent. The second objective of regression line is to calculate the effect of elaborately variable on the variable which is dependent.
Therefore,the closest to the total cost if the firm uses 6,000 machine hours is $2,945.95.
Learn more about regression analysis here:
brainly.com/question/15305754
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Answer:
Positively
Explanation:
In the e-commerce sector, consumers would often feel the effects of an increase in Federal gas tax since the shipping cost of products they purchase would be based on the prices of gasoline.
In effect, retailers of these products would transfer the increased shipping cost of this products resulting from higher gas tax to the consumers.
According to the eclectic paradigm location-specific advantages are of considerable importance in explaining both the rationale for and the direction of foreign direct investment.
