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1 year ago

Margaret puts money into her savings account each month. in this example money is functioning as a

Business

1 answer:

astraxan [27]1 year ago

4 0

Answer: a store of value

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Consider a one-year project that costs $126,000, provides an income of $70,000 a year for 5 years, and costs $225,000 to dispose

Inessa [10]

Answer:

Present Value (PV) of cash flows are as follows.

(i) Discount rate = 0%

$\mathrm{PV}(\mathrm{S})=-126,000+70,000 \mathrm{x} \mathrm{P} / \mathrm{A}(0 \%, 5)-225,000 \mathrm{x} \mathrm{P} / \mathrm{F}(0 \%, 5)$ $=-126,000+70,000 \times 5-225,000$

= - 1

Since PV < 0, the project should not be undertaken.

(ii) Discount rate = 2%

$\mathrm{PV}(\mathrm{S})=-126,000+70,000 \mathrm{x} \mathrm{P} / \mathrm{A}(2 \%, 5)-225,000 \mathrm{x} \mathrm{P} / \mathrm{F}(2 \%, 5)$

$|=-126,000+70,000 \times 4.7135-225,000 \times 0.9057$

= 156

Since PV > 0, the project should be undertaken.

(iii) Discount rate = 5%

$\mathrm{PV}(\mathrm{S})=-126,000+70,000 \mathrm{x} \mathrm{P} / \mathrm{A}(5 \%, 5)-225,000 \mathrm{x} \mathrm{P} / \mathrm{F}(5 \%, 5)$

$=-126,000+70,000 \times 4.3295-225,000 \times 0.7835$

= 772

Since PV > 0, the project should be undertaken.

(ii) Discount rate = 10%

$\mathrm{PV}(\mathrm{S})=-126,000+70,000 \mathrm{x} \mathrm{P} / \mathrm{A}(10 \%, 5)-225,000 \mathrm{x} \mathrm{P} / \mathrm{F}(10 \%, 5)$

$=-126,000+70,000 \times 3.7908-225,000 \times 0.6209=-126,000+265,356-139,707$

= - 351

Since PV < 0, the project should not be undertaken.

4 0

2 years ago

Does anyone know how much smart boards are?

ivanzaharov [21]

Depends on brand. can vary from a few hundred to more.

6 0

3 years ago

Read 2 more answers

1)If an interest rate is fixed that means the rate

Bad White [126]

Number 1 is B
number 2 is C

7 0

3 years ago

Read 2 more answers

Mr. Beautiful, an organization that sells weight trainingsets, has an ordering cost of $45 for the BB-1 set (BB-1 stands fo

andrew-mc [135]

Answer:

839.216

Explanation:

For we to calculate the total cost, we use the following

Total Cost = Carrying Cost + Stock out Cost

= 0+ $45 x 4 x [.2(100-80)+.2(120-80)+.1(140-80)] = 1368*

Now

Total Cost = Carrying Cost + stock out Cost

Total cost= [10 x 20]+40 x 4 x [.2990-50-20)+.1(110-50-20)]

Total cost = 200-1115.216+4

Total cost = 839.216

8 0

2 years ago

Which of the following is measured by utility? A. The satisfaction a person gets from consumption. B. The cost of adding a singl

Svet_ta [14]

Answer:the satisfaction a person gets from consumption

Explanation:

3 0

2 years ago