If supply decreases and demand remains stable, the price mechanically moves up since richer people are ready to pay more to get gasoline.
Of course companies selling gasoline want to maximize their profit so they will increase the price.
Right answer is A.
The value of the investment could be unpredictable when the investment is volatile. To add up, the fluctuation patterns of the value could be a lot different than it should be. It can be observed in a graph that the curve just suddenly rises and falls covering only a smaller amount of time.
Because of its highly efficient and low-cost distribution system, walmart has a <u>"Sustainable competitive" </u>advantage over kmart.
Sustainable competitive advantages are required for an organization to flourish in todays worldwide condition. Value investors look for organizations that are deals. Keeping in mind the end goal to abstain from acquiring an esteem trap one of the variables we scan for is sustainable competitive advantages.
Without at least one sustainable competitive advantages an organization will most likely be unable to recoup from whatever made the stock turn into a deal. We just need to purchase the loads of organizations that are genuine esteem ventures, not esteem traps. As it were, we need to purchase stocks exchanging beneath their inborn esteem and will develop income for investors.
Use the formula of the present value of an annuity ordinary which is
Pv=pmt [(1-(1+r)^(-n))÷r]
Pv initial investment?
PMT annual cash flow 10000
R interest rate 0.14
N time 5years
Pv=10,000×((1−(1+0.14)^(−5))÷(0.14))
pv=34,330.81
