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
uysha [10]
3 years ago
8

What is the present value of a constant perpetuity of 25 per year where the required rate of return is 5%

Business
1 answer:
Xelga [282]3 years ago
5 0

Answer:

The present value of a constant perpetuity of 25 per year where the required rate of return is 5% is:

$500

Explanation:

a) Data and Calculations:

A constant perpetuity = $1

Present value factor of a constant perpetuity for 25 per year at 5% is $1/0.002

Number of periods for the perpetuity per year = 25

Required rate of return = 5%

Rate of return per period = 5%/25 = 0.002

Therefore, the value of a constant perpetuity = $1/0.002

= $500

The $500 can be used to multiply any amount given obtain the total value of the perpetuity.

You might be interested in
NDP Mp will be equal to:
Ivanshal [37]

Answer:

B) NDPFC + Indirect Taxes

Explanation:

Net domestic product (NDP) is obtained by subtracting depreciation from gross domestic product (GDP), and it can be calculated at market price (NDPmp) or at factor cost (NDPfc):

  • NDPmp = GDPmp – depreciation
  • NDPfc = GDPmp – depreciation – indirect taxes

If we substitute NDPfc into option B, we will get:

NDPmp = NDPfc + indirect taxes

NDPmp = (GDPmp - depreciation - indirect taxes) + indirect taxes

NDPmp = GDPmp - depreciation

6 0
3 years ago
The main goal of resource development is to find ways to promote the central planning of resource utilization so that resources
Brilliant_brown [7]

Answer:

Allocate existing resources more efficiently among competing uses.

Explanation:

The main goal of resource development is to find ways that allocate resources more efificiently, to spread the available resources in a way that maximizes economic and social benefit taking into account the different competing uses.

Resource development does not necessarily promote central planning because it can make use of market strategies to achieve its goal, and it cannot increase the amount of resources available as well, because these are determined by the natural endownment that each area has.

4 0
3 years ago
Alpha Company manufactures Product P and sells it in packs of 10 units. The actual results for the first week in January are as
kaheart [24]

Answer:67500

The right solution is "13,675 U".

Explanation:

According to the question,

The standard material cost will be:

= 25000\times (\frac{90000}{30000} )\times 0.90

= 25000\times 30000\times 0.90

= 67,500

The actual material cost will be:

= 95500\times 0.85

= 81,175

hence,

The total material price variance will be:

= Actual \ cost - Standard \ cost

= 81175-67500

= $13,675 (Unfavorable)

3 0
2 years ago
Instructor Services is a technology company that offers many IT services in highly populated southern Ohio. The company's servic
Brrunno [24]

Answer:

E is the correct options, broad needs and many customers

Explanation:

The fact that Instructor Services offers many related services shows that its strategic intent includes providing a wide of range technologically related services which also includes sales and repairs of computers.All of these refer to the drive to fulfill many needs.

Secondly, the location of the business was a strategically crafted, in this sense that Ohio is highly populated and establishing business in such business district gives an assurance of high patronage from diverse group of many customers.

3 0
3 years ago
Read 2 more answers
Which of the following statements is TRUE? Group of answer choices Dependent demand is directly related to the demand of other s
liubo4ka [24]

Answer:

A). Dependent demand is directly related to the demand of other stock-keeping units (SKUs) and can be calculated without needing to be forecasted.

Explanation:

The first statement asserts a true claim as it correctly states that 'dependent demand is promptly associated to the demand of further SKUs and therefore, it can be measured without requiring any prediction.' Dependent demand is characterized as a demand that is reliant on the other products' demand. This is why such demands are directly influenced by a rise or fall in the other products' demand and <u>this is the reason due to which dependent demand can be calculated easily without any prediction because it will observe a similar impact as its associated product would face</u>. Thus, <u>option A</u> is the correct answer.

6 0
2 years ago
Other questions:
  • A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8, and $648,200 in free cash flows. What value
    13·1 answer
  • What are possible red flags or signs of a scam when buying a car?
    6·1 answer
  • The herfindahl index suppose that three firms make up the entire wig manufacturing industry. one has a 50% market share, and the
    10·1 answer
  • Select the correct statement regarding fixed costs. Multiple Choice
    6·1 answer
  • Suppose demand and supply are given by Qd = 60 - P and Qs = 1.0P - 20.
    9·1 answer
  • Two investment advisers are comparing performance. One averaged a 19% return and the other a 16% return. However, the beta for t
    9·1 answer
  • Gladys learns from her agent Phil that he has just received a full price offer from a minority couple. She tells Phil to pull he
    6·1 answer
  • Miller Corporation issued 6000 shares of its​ $5 par value common stock in payment for attorney services billed at​ $54,000. Mil
    11·1 answer
  • IBM expects to pay a dividend of $6 next year and expects these dividends to grow at 4% a year for the foreseeable future. The p
    9·1 answer
  • In the presence of sunlight plants use photosynthesis to transform water and a carbon dioxide into sugar and oxygen Why then is
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!