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3 years ago

When is a lower annual interest rate better than a low annual fee?

Business

1 answer:

34kurt3 years ago

7 0

Explanation:

Lower annual interest in real terms is a relief to customers because it can go across a monthly payment like in a product purchase with a credit card. A low annual fee is just one payment that can be a certain membership of which happens only on an annual basis.

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Joe and Rich are both considering investing in a project with the following cash flows. Joe is content earning a 9 percent retur

vampirchik [111]

Answer:

d. both joe and rich

Explanation:

To determine who should accept the project, the net present value should be calculated.

The net present value is the present value of after tax cash flows from an investment less the amount invested.

The net present value can be calculated using a financial calculator

Cash flow in year 0 = -$25,000

Cash flow in year 1 = 13,700

Cash flow in year 2 = 18,400

Rich 's discount rate = 16%

Richs NPV = $484.54

Joe's discount rate = 9%

Joes NPV = $3,055.72

The decision rule with NPV is to invest if NPV is greater than zero

Since NPV is greater than zero for both rich and joe, they should both accept it.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

5 0

3 years ago

Question help using ________ may cause a manager to reject a project that may be profitable to the company as a whole

mr Goodwill [35]

The answer is ROI
If the manager is evaluated based on Return on Investment, that manager will be very likely to reject every projeccts which return is below a certain departement standard no matter if that project is profitable for the company in the fear of being replaced by those who show better numbers.

7 0

3 years ago

Read 2 more answers

____________ is one of the world's largest single markets, with 25 member countries, a common currency, and more than 454 millio

Simora [160]

The European Union is one of the world's largest single markets, with 25 member countries, a common currency, and more than 454 million consumers.

The European Union is a political and economic union of 27 member states that are located primarily in Europe. The EU provides for open borders between its member countries to facilitate trade without tariffs or duties.

Three bodies run the EU. The EU Council represents national governments. The Parliament is elected by the people. The European Commission is the EU staff. They make sure that all members act consistently in regional, agricultural, and social policies.

To learn more about European Union here

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6 0

1 year ago

Two models for department store success seem to be emerging—one with a strong retail brand approach and one as a showcase store.

yKpoI14uk [10]

Answer:

Showcase stores are stores that display their products in a way that makes it easy for customers to determine what products are available.

Explanation:

Department stores are large stores with various assorted products and they adopt different approaches for selling their products to customers which include retail branding and showcase stores.

In a showcase store, a variety of products available in the store are displayed for customers to see, so they know what the store has available. These products that are showcased are not actually the ones sold.

The retail branding approach involves a large department store owning or controlling several smaller retail outlets with unique brands through which it sells its specific products.

A well branded retail outlet connects better with target customers and provides a more attractive option when they have to choose between competing brands.

5 0

3 years ago

The problem of scarcity:

natali 33 [55]

Answer:

The correct answer is option b.

Explanation:

The problem of scarcity of resources is the basic problem in the study of economics. This problem exists because the resources are limited and have alternative uses. These resources are used to satisfy unlimited wants and needs.

So we need to determine the efficient allocation of these scarce resources such that we are able to get maximum satisfaction or utility from them.

Because of this scarcity problem, every economic decision involves some trade-off.

8 0

3 years ago