The formula for percent discount value after n years at the rate r is given by
pdv=fv/(1+r)^n
where fv is the fixed value
here only fixed value is given to us so we will calculate the discounted value for coming 10 years
after
year 1=943.4
2=890
3=839.62
4=739.09
5=747.26
6=704.96
7=665.06
8=627.41
9=591.90
10=558.39
Answer:
Rational decision-making model
Explanation:
Rational decision-making model: It is one of the decision-making models which assume we have sufficient knowledge, information, resources, time and ability to evaluate and make a correct choice among different alternative we have.
There are six steps to Rational decision-making model:
- Define the problem.
- Identify the decision criteria.
- Weight established criteria.
- Using relative comparision.
- Generate list of alternative.
- Evaluate the alternatives.
- Determine the optimum decision.
Net present value (NPV) analysis is useful for determining
the current value of a stream of cash flows that extend out into the future. To
calculate net present value, we use the following formula:
NPV = X * [(1+r)^n - 1]/[r * (1+r)^n]
Where:
X = The amount received per period
n = The number of periods
r = The rate of return
npv = 875,000 * [(1+0.11)^7 - 1]/[0.11 * (1+0.11)^7]
= $ 7,954, 545
Answer:
$880.31
Explanation:
For computing the new price of the bond we need to apply the present value formula i.e to be shown in the attachment
Given that,
Assuming Future value = $1,000
Rate of interest = 8.6% ÷ 2 = 4.3%
NPER = 8 years × 2 =
PMT = $1,000 × 6.5% ÷ 2 = $32.5
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the present value is $880.31
Unlike the other major presentation formats, in the stimulus-response presentation format the salesperson does not dominate the conversation but instead asks probing questions and listens to the prospective customers. The <span>stimulus-response presentation format is a </span> selling format that assumes that given the appropriate prompts by a salesperson, the prospect will buy.