Answer:
$110,082
Explanation:
1. Year 0 - year 12
PV = $-25,500 (Amount of deposit today)
i/r = 5.9%
n = 12 years
PMT = 0 (no annual deposit)
FV (Value of deposits at end of year 12) =?
Using financial calculator, FV = $50,733
2. Year 13 - Year 27
PV = $-50,733
i/r = 5.3%
n = 15 years
PMT = 0 (no annual deposit)
FV (value of deposit at end of year 27) = ?
Using financial calculator, FV(27) = $110,082
Answer:
A
Explanation:
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing.
Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.
For either firm, the payoff of cutting price is either 6 or 24
For either firm, the payoff of colluding is either 8 or 12
the dominant strategy for both firms is to cut price because it is the best option regardless of what the other firm does as it yields the highest payoffs.
Thus, the Nash equilibrium is to cut price
Answer:
the forecast for next year is also $32.4 million
Explanation:
Given that:
the smoothed value for this year is $32.4 million
Let assume that i should be the current year
So; i + 1 can now be the next year
Therefore:
However; as we know quite well that the smoothed value for the current time period is equally the same thing to the forecasted value of the following year time period.
We can therefore posits that, the forecasting for the next year will be:
Thus; the forecast for next year is also $32.4 million