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Veronika [31]
3 years ago
14

A lottery winner can take $6million now or be paid $600,000 at the end of each year for the next 16 years. The winner calculates

the internal rate of return of taking the money at the end of each year, and estimating that the discount rate across this period will be 5%, decides to take the money at the end of each year. Was her decision correct
Business
1 answer:
morpeh [17]3 years ago
5 0

Answer:

yes

the present value of the 16 year annuity is 6502661.74. this is greater than $6 million

Explanation:

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A firm seeking a growth strategy designed to increase sales of existing products to current​ customers, nonusers, and users of c
PIT_PIT [208]

Answer:

The correct answer is B Market penetration

Explanation:

Market penetration strategy is one of the four growth strategies and it involves focusing on selling your existing products or services into your existing markets to gain a higher market share.

3 0
4 years ago
If government purchases increase by $10 billion and the economy's mpc is. 8, the aggregate demand curve will shift _____
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If government purchases increase by $10 billion and the economy's MPC is. 8, the aggregate demand curve will shift <u>rightward by $50 billion at each price level.</u>

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5 0
2 years ago
A customer touch point for abacus airlines would be an item such as ________. a mechanic's ability to service the airplanes the
eduard
<span>A customer touch point for abacus airlines would be an item such as reservation desk. 

A customer touch point is a point in the process where a consumer and the organization exchange information, finish providing the service, or handle transactions. At the reservation desk, the customer and the business are focusing on the business and service transactions.  </span>
3 0
3 years ago
On March 15, American Eagle declares a quarterly cash dividend of $0.105 per share payable on April 13 to all stockholders of re
rodikova [14]

Answer:

March 15                 Debit                Credit

Dividends                $22,470,000

Dividends Payable                         $22,470,000

March 30     No entry

April 13

Dividends Payable   $22,470,000

Cash                                                 $22,470,000

Explanation:

In order to record American Eagle's declaration and payment of cash dividends for its 214 million shares first we would require to calculate the dividends as follows:

Dividends=214,000,000 shares*$0.105

Dividends=$22,470,000

Therefore, the journal entries would be the following:

March 15                 Debit                Credit

Dividends                $22,470,000

Dividends Payable                         $22,470,000

March 30     No entry

April 13

Dividends Payable   $22,470,000

Cash                                                 $22,470,000

7 0
3 years ago
Mutual funds _____. a. are investment companies that use funds provided by savers to buy various types of financial assets, incl
Crazy boy [7]

Answer:

a)

Explanation:

Mutual funds are investment companies called AMC( asset management companies ) that gather funds from public by issuing units. These funds are then invested in financial securities and financial instruments likes bonds and shares. Mutual funds  are managed by financial experts and are less risky for common public than direct investment in stock market.

7 0
3 years ago
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