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natita [175]
3 years ago
14

Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near ter

m. He anticipates his first annual cash flow from the technology to be $178,000, received two years from today. Subsequent annual cash flows will grow at 3.8 percent in perpetuity.
Required:
What is the present value of the technology if the discount rate is 10 percent?
Business
1 answer:
natita [175]3 years ago
4 0

Answer:

For example, at a discount rate of 10%, $100 received in years 1 to 5 inclusive has a present value of 90.9 + 82.6 + 75.1 + 68.3 + 62.1 = $379.

Explanation:

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QUESTION 5 A and B are substitute goods, but A and C are complementary goods. If the cost of producing A decreases, then the dem
goldenfox [79]

Answer:

The correct answer is letter "D": B will decrease and the demand for C will increase.

Explanation:

Substitute goods are those whose quantity demanded are inversely proportional. It implies if the quantity demand for one product increases, the quantity demanded for its substitutes will decrease and vice versa.

Complementary goods' quantities demanded have a directly proportional direction. Thus, if the quantity demanded for one product increases, the quantity demanded for its complementary goods increase as well.

So, <em>the cost of producing good A will bring its prices down causing the quantity demanded for A to increase -demand law. Substitute good B will see its quantity demanded dwindled while complementary good C will see its quantity demanded increased.</em>

6 0
3 years ago
In the united states the largest expenditure component of gdp is
Dmitry_Shevchenko [17]
I believe the answer is Consumption
6 0
3 years ago
Read 2 more answers
You have some property for sale and have received two offers. The first offer is for $189,000 today in cash. The second offer is
Sonbull [250]
<h3>Hello there!</h3><h3>Answer: Receive the $189,000 today. It has a net value that's higher</h3>

The reason why you should receive the $189,000 today because it would have a net value that's higher than the second value.

When you get the $189,000, all of that money belongs to you, you don't have to worry about the discount rate of the property. The person that buys the property would be affected by the discount rate.

But for the second offer, you would apply the discount rate.

In the second offer, you're suppose to be getting $200,000. However, the discount rate will take away some of the money.

200,000*0.0875=17,500\\\\200,000-17,500=182,500

You would technically only get $182,000, meaning that you would be getting less than what you expected.

<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
6 0
4 years ago
Caroline, who files as head of household, received $9,000 of social security benefits. Her AGI before the social security benefi
suter [353]

Answer:

$4,500

Explanation:

First we have to calculate the provisional income which shall be calculated as follow:

AGI amount:                                                         $27,000

Tax exempt interest                                              $200

50% of your social security benefit                       $4,500

(0.50*9,000)

Total provisional income                                       $31,700

Since the amount of provisional income is greater than the base amount of  $25,000 for Head of house hold but less than $34,000, therefore the Caroline will have to pay taxes on 50% of the social security benefits and hence the amount of taxable social security benefit shall be $4,500

4 0
3 years ago
In which of the following cases is the Coase theorem most likely to solve the externality?
inessss [21]

Answer:

a. Ed is allergic to his roommate's cat.

Explanation:

In the case of coase theorem the economic conditions in which there is a conflict of proerty rights and the parties that are involved could bargain or negotiate the terms so this will correctly to be shown the complete cost also the values related to the property rights at issue that could result in the effecient outcome or result

So as per the given situation, the option a is correct

4 0
3 years ago
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