Answer:
A. Offer the product for free early on, and increase the price later.
Explanation:
Network effect occurs when the value of a product or service increases as more people use it.
For a company that believes its product will exhibit network effects and wants to get as many customers as possible to use the product,<u> it is best to offer the product for free to create a buzz around the product.</u>
This increases the chances of the people becoming aware of the product.
With time, <u>the company can increase the price of the product as people will be willing to pay for it because they consider it to be valuable.</u>
Answer:
Explanation:
PV formula=C/(1+R)^n, C- cash flow(CF) for the period, R-interest rate, n-number of period
PV of CF received in 2015= 3400000/(1+0.11)^1=3063063.06
PV of CF received in 2016= 12400000/(1+0.11)^2=10064118.17
PV of CF received in 2017=12400000/(1+0.11)^3=9066773.13
PV of CF received in 2018=13400000/(1+0.11)^4=8826995.05
PV of CF received in 2019=13400000/(1+0.11)^5=7952247.8
Net worth=NPV=[3063063.06+10064118.17+9066773.13+8826995.05+7952247.8]=38973197.21
TOTAL PV=3,897,3197.21
Answer:
Option D
Explanation:
A single premium immediate annuity relates to the insurance company arrangement whereby one really pay them a large sum of money right up front (widely referred to as a premium price) and so on. The company promise to regularly (monthly, for example) give you a specific amount of benefits for the remaining of one's lifetime.
Income payments both for instant annuities are made on the basis of non-taxed main yields and earnings payouts that are taxed at levels of income tax instead of levels of capital gain.
Answer:Accounting profit equals total revenue minus accounting costs
Explanation: Accounting profits are actual profits a company makes during a particular accounting year and it can be calculated using the company's total revenue (sales) minus the company's costs ( costs of sales (purchases) plus operating costs) for that particular period under review.
The taxable income will Ramon show in 2021 is $89,000
What is taxable income?
The taxable income of a taxpayer means the income upon which tax would be charged in the tax year, it is determined as the adjusted gross income minus the itemized deductions of the taxpayer.
The itemized deductions means those amounts due to legal pronouncements, which have been exempted from taxes, which means , they need to be deducted from the taxpayer gross earnings before tax computation.
It is the tax authority way of providing succor to taxpayers by granting certain exemptions.
Taxable income=adjusted gross income- itemized deductions
Taxable income=$98,000-$9000
taxable income=$89,000
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