Answer:
PV= $40,716,437.34
Explanation:
Giving the following information:
Cash flow= $3,400,000 per year
Number of years= 25
Interest rate= 6.7%
To calculate the present value, first, we will calculate the future value:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {3,400,000*[(1.067^25) - 1]} / 0.067
FV= 206,006,183.4
Now, the present value:
PV= FV/(1+i)^n
PV= 206,006,183.4/ (1.067^25)
PV= $40,716,437.34
Answer:
Many observer says it does
Explanation:
This is because certain or few group of owners would dominate the industry and also won it, they would control how new owners enter into the game
Answer: 1.621
Explanation:
The old charge per student was $678 per month
The new charge is $1,099.
The percent of the new charge compared to the old according to the question methodology is:
= New charge per student / old charge per student
= 1,099/678
= 1.621
Answer:
The fixed cost at any level of activity is $48,000 while the variable cost per unit at any level of activity is $1.30
Explanation:
The total cost is a function of the fixed and variable cost. Whilst the fixed cost does not change at a certain range of activities level, the variable cost changes as the level of activities(units produced or sold).
Using the high and low levels of activities given, let the variable cost per unit be v and the fixed cost F
for the high level,
F + 90,000v = 165,000
For the low level
F + 40,000v = 100,00
Solving both equations simultaneously,
50,000v = 65,000
v = $1.30
F + 40,000($1.30) = 100,000
F = 100,000 - 52,000
F = $48,000
Explanation:
I disagree with this argument, it can be said that the secondary market is equally or more important than the primary market, due to the fact that it is the secondary markets that determine what will be the prices that the companies that issue bonds will sell in the primary market.
Secondary markets can also be considered to be responsible for making securities easier to sell in the primary market due to their greater liquidity.
