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Rainbow [258]
3 years ago
5

You own a movie theater. The theater generates $100,000 per year in net income. This is expected to grow at 2% per year. Someone

offers to buy the theater from you. How much should you charge as the selling price of the theater?
Business
1 answer:
Flauer [41]3 years ago
5 0

Answer: $1275000

Explanation:

From the question, we are informed that a theater generates $100,000 per year in net income and it is expected to grow at 2% per year.

The selling price of the theater if someone offers to buy will be:

= net income × (1+g) / (r-g)

= $100,000 × (1 + 2%) / (10% - 2%)

= $100,000 × (1.02) / (0.08)

= $1275000

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How did the k-abc differ from the stanford-binet and wechsler tests?
Paraphin [41]
The K-ABC is different from the wechsler test and  stanford-binet because it was designed to measure several distinct aspects of intelligence. The K-ABC test is just designed to measure several distinct aspects of intelligence of human or students who are taking the test. So the answer in this question is, it was designed to measure several distinct aspects of intelligence.
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4 years ago
Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a
Degger [83]

Answer:

All firms get zero profit

Explanation:

Because

When patent expires, it causes free entry of new firms which increases market supply. The market supply curve shifts rightward which decreases price lower than P1. In new long run equilibrium, all firms earn zero economic profit

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3 years ago
Read 2 more answers
What measures the change in prices of a basket of goods and services in a given year?
GalinKa [24]

The measures that change in prices of a basket of goods and services in a given year include option D: inflation.

<h3>What do you mean by term Inflation?</h3>

The term inflation is defined as the rise in the prices of goods and services in an economy.

The average change over time in the prices paid by urban consumers for a market basket goods and services of consumer is measured by the consumer price index.

Therefore, correct option is D.

Learn more about inflation, refer to the link:

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8 0
2 years ago
Pepsi-Cola made "freshness" an important product attribute when it stamped freshness dates on its cans. Prior to doing so, few c
mafiozo [28]

Answer:

changing the perceived importance of a specific attribute.

Explanation:

Pepsi-Cola made freshness an important product attribute in cola by using dates stamped on their cans and advertising and promotion. (Prior to doing so, few consumers considered freshness a relevant issue for soft drinks.) As a result of the campaign, 61 percent of cola drinkers believed freshness dating was an important attribute. By this, Pepsi-Cola has tried to change consumers' attitudes toward its soft drinks by changing the perceived importance of a specific attribute, which is freshness.

6 0
3 years ago
g how much will 5500 invested at the end of each year grow in three years, assuming a interest rate of 11%
Dmitriy789 [7]

Answer:

FV= $17,105

Explanation:

Giving the following information:

Annual investment= $5,500

Interest rate= 11%

Number of periods= 3

I will assume that the annual deposit is at the end of the year.

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

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FV= {5,500*[(1.11^2) - 1]} / 0.11 + 5,500

FV= $17,105

5 0
3 years ago
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