You will receive $500 tomorrow. You will receive an additional nine cash flows growing at the rate of inflation of 2 percent per year. The nominal interest rate is 10 percent. a. Find the value of the stream of cash flows. Make sure to show your work. b. What is the real value of each cash flow received? Make sure to show your work. c. Find the value of the stream of cash flows, based on real values. Make sure to show your work. d. What do you observe? Explain.
Answers
Answer:
please find the solution which is defined as follows:
Explanation:
please find the table in the attached file:
In point A, The Cashflow value = 5474.86 (premised on the description of cash flows). In point B, the above table the PV of cash flow represents the real cost of its earned cash flow. In point C, its actual value of the cash flow source is 3643.921. In point D, The observation would be that the value of money year after year is depleting and is worth far more as inflation is weak.
Related Questions
Identify the factors that would MOST LIKELY help a firm to increase production.
Investment in new
technology.
Hiring more employees.
An increase in demand.
Increased education of labor force.
A decrease in demand
Increase foreign competition.
Answers
Answer:
Investment in new technology.
Hiring more employees.
increased education of labor force.
Explanation:
At the micro-economic level, the following factors would MOST LIKELY help a firm to increase production.
A) Investment in new technology B) Hiring more employeesD) Increased education of labor forceAt the macro-economic level, an increase in demand is a factor that will lead to more production by the industry.At the firm-level (micro-economic), a decrease in demand or an increased foreign competition cannot lead the firm to increase production. Instead, they discourage more production of goods and services.To increase production, a firm must invest in new technology and hire more. The latter will be boosted by an increase in labor education.Thus, the factors that lead to increased production by a firm are A), B), and D).
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A federal tax paid for old-age, survivors, and disability insurance is called:
A insurance tax
B income tax
C Social Security tax
D Medicare tax
Answers
Answer: medicare tax
Explanation:
A central bank would like to increase the money supply in the country. It
achieves this by buying treasury securities from investors who had purchased
them earlier. Investors who sell their securities now have more money on
hand to invest in businesses.
This action best illustrates the central bank's use of which tool of monetary
policy?
A. Open market operations
B. Reserve requirements
C. Discount rate
D. Interest on reserves
Answers
Answer:
A) Open Market Operations
Explanation:
I just got it right
Open market operations action is best illustrates the central bank's use of which tool of monetary policy. Thus, option (a) is correct.
What is investors?
Anyone who makes investments in a business, organization, or piece of real estate is referred to as a “investor.” Shares of corporations, bonds, and debentures are frequently bought by investors.
A central bank implements monetary policies by expanding the money supply through open market transactions. They affect central bank reserve balances and moderate changes to regularly occurring interest rates.
Therefore, option (a) open market operations is correct.
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Explain how a marketing strategy is developed.
Answers
Answer:
The development of a marketing strategy involves the isolation of a target market segment, a set of clear-cut goals, a fair amount of consumer research, and the implementation of initiatives aimed at getting the word out.
Explanation:
When governments allow one highly regulated business to control an
essential service, such as water treatment, they create:
A. a public oligopoly.
B. a natural monopoly.
C. restricted competition.
D. monopolistic competition.
Answers
The type of Monopoly that occurred when a regulated business is been given control on essential service is B: natural monopoly.
A natural monopoly can be regarded as a kind of monopoly that occurr, as a result of a single firm serving market at lower cost that is even lower than that of combination of two or more firms.It do occur when government give that control to a firm on essential service such as water treatment.
Therefore, option B is correct.
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Answer:
B. a natural monopoly.
Explanation:
Jamie is a purchasing agent for a company that manufactures shoes. She
has just submitted a purchase order to a supplier for more leather. Which
step of the purchasing process comes next?
A. Quality check
B. Requisition
C. Bid soliciting
O D. Shipping
Answers
Answer:
D. Shipping
Explanation:
Shipping refers to the activity of physically moving goods from one location to another. The goods could be moving from one store to another, from manufacturers to distributors, or from retailers to customers. Shipping is 'carrying goods' and hence a component of logistics.
After Jamie has prepared a submitted a purchase order, the next thing is to wait to receive the goods she ordered. Her supplier should ship the goods to her. The supplier can deliver the goods by themselves or use a logistics company.
At the end of the 2020 fiscal year the General Fund had $500 in encumbrances that remained opened into fiscal year 2021. In 2021 the encumbered goods were received at an invoiced cost of $520. How much would be recorded as the 2021 expenditure?A) $0.B) $20.C) $500.D) $520.
Answers
Answer:
B) $20
Explanation:
Calculation for how much that would be recorded as the 2021 expenditure
Using this formula
Expenditure =Invoiced cost-General fund
Let plug in the formula
Expenditure =$520-$500
Expenditure =$20
Therefore the amount that would be recorded as the 2021 expenditure will be $20
Which of the following are signs of a person being in credit distress?
A. Writing a check to make debt repayment
B. Making all debt repayments in full
C. Only making minimum payments on credit cards each month
D. Paying-off an automobile loan 12 months early
Answers
Only making minimum payments on credit cards each month.
What's a distressed borrower?A distressed borrower is a borrower who is unable to completely repay their debt on time, due to economic difficulties. A distressed borrower can be both someone or an enterprise whose profits fall because of unexpected circumstances.
What takes place in monetary distress?Monetary misery is a condition wherein an agency or man or woman can not generate sufficient revenues or profits, making it unable to fulfill or pay its monetary obligations. That is generally because of high fixed costs, a big diploma of illiquid property, or sales sensitive to financial downturns.
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milk = $3.15
Romaine lettuce= $3.46
Zesty italian dressing= $1.76
Quaker instant grits= $3.48
(4) Chef Boyardee Beefaroni = $3.52
Nestle pure life 12 pack= $1.94
soap= $3.97
clorox= $2.48
subtract these prices from $145 for how much is left!
Answers
.
Hope this helps
Select the correct answer from each drop-down menu.
Managers use the decision support system to support business and organizational decision making. What are two examples where companies
make use of this system?
Decision support systems help managers use (filtered data, structured data, raw data)
to identify problems and find solutions to business-related problems.
The (financial decision, financial planning, financial management)
system is an example of this system.
Answers
Answer:
1st one: Raw data
2nd one: Financial planning
Explanation:
I saw another question where the OP gave the answer saying that they posted it for people so that they could answer it, and the answer was indeed correct. Thanks BanditCrusher06
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Decision support systems help managers use raw data to identify problems and find solutions to business-related problems. The financial planning system is an example of this system. Thus, option C and B is correct.
What is decision-making?Determining a decision, acquiring data, and weighing alternative approaches are all steps throughout the decision-making method. One can make a decision based on the alternatives that are available to them and choose which one will be the most feasible.
Managers to using raw data which means the unfiltered filter data to detect the problem and discover the solution by using the decision-making process as these data or not being adjusted or being filtered out which would give them the best result
One illustration of this system is financial planning, in which the manager basically allow different finance or different amount to the various department based on their requirements. Therefore, option C and B is the correct option.
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The managerial function of leading: is a part of the planning process. involves monitoring the organization s progress toward its goals. is the set of processes used to get members of an organization to work together. involves setting an organization s goals and deciding how best to achieve them.
Answers
Answer:
is the set of processes used to get members of an organization to work together.
Explanation:
Management can be defined as a strategic process which typically involves analyzing, planning supervising, organizing, controlling and coordination of employees and business activities in order to successfully achieve organizational goals and objectives.
Generally, there are four (4) main components associated with the management of business activities and employees, these includes planning, organizing, leading and controlling.
The managerial function of leading is the set of processes used to get members of an organization to work together. Thus, leading a team of workers working in an organization simply involves communication, motivation, inspiration, direction, guidance and support of these employees in order to enhance their level of output or production at all times.
The managerial function of leading: is a part of the planning process is the set of processes used to get members of an organization to work together, third option is correct.
In order to successfully achieve organizational goals and objectives, management is often characterized as a strategic process that involves analysis, planning, supervision, organizing, regulating, and coordinating of personnel and business operations.
The management of corporate operations and personnel generally consists of four key elements: planning, organizing, leading, and controlling.
The collection of procedures used to get team members in an organization to collaborate is known as the management function of leadership. So, managing a group of people in an organization simply entails communicating with them, inspiring them, directing them, guiding them, and supporting them so that their output or production is always at a higher level.
Thus, third option is correct.
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How did Confucius think that one should live? according to the king's demands according to the wishes of the family according to government rules according to a high ethical code
Answers
Answer: according to a high ethical code
Hope this helps you plz mark brainlyest
If consumers start to believe they need a product, what is likely to happe A. The demand becomes less elastic. B. The demand becomes more elastic. C. The supply decreases. D. The price decreases.
Answers
If consumers start to believe they need a product, it is likely that the demand for the good becomes less elasticity.
What is price elasticity of demand?
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
When consumers consider a good to be a necessity, the elasticity of demand becomes less elastic. The more elastic demand is, the more sensitive quantity demanded is to price changes. The less elastic demand is, the less sensitive quantity demanded is to price changes.
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Answer:
B
Explanation:
takin test now
What is the name for a loan with a co-signer
Answers
Answer:
co-borrowers
Explanation:
They are joint borrowers that are sharing and have to repay a debt together.
Why is there a need to assess one's PECs in terms of characteristics,attributes,lifestyle,skills traits before starting a particular business?
Answers
Answer:
Explanation:
PECs stands for Personal Entreprenurial Competencies.
It is important to evaluate them because they have a way of predicting how successful one would be in a particular business.
Some of these attributes include but are not limited to the following:
Ability to Influence other People: People here refer to customers, public and even staff.Self-Confidence: Confidence in one's abilities is key for survival in any business or endeavour.
Persuasion: Persuasion goes hand in hand with influence and Self-Confidence. It's almost impossible to influence other people if ones does not have self-confidence or lacks the strategy to do so.
Efficiency Orientation: The best entrepreneurs known how to create value from little or nothing.Problem Solving: This is one of the greatest skills of an Entrepreneur. The higher they go on this trait, the more their chances of success.
Information Seeking: This is not just about reading. It refers to ones ability to seek related intelligence within and outside of one's environment. Good intelligence contributes to great decision making.
Ability to spot and utilize Opportunities: This is two traits combined in one. Spotting opportunities is overrated. Ability to organise internal and external resources in order to translate such opportunities into value is priceless.
Grit: Also known as persistence. This is key and is required for any idea which is receiving efforts to come to fruition.
Cheers!
Answer the question on the basis of the following production possibilities table for two countries, North Cantina and South Cantina.
Refer to the table. If South Cantina is producing at production alternative F, the opportunity cost of the first unit of capital goods will be
A.1/2 of a unit of consumer goods.
B.1 unit of consumer goods.
C.27 units of consumer goods.
D.2 units of consumer goods.
Answers
hope this helpful
'Opportunity Cost' is described as the 'value of the next best possible opportunity that is given up for choosing the other.'
In the given situation, the opportunity cost of producing the very first unit of Capital Goods for South Cantina would be:
C). 27 units of consumer goods.
As we know, 'opportunity cost' is the cost of the next best alternative and its benefits that are lost for producing the other. The loss that South Cantina would suffer for producing one unit of the capital good is worth '27 units of consumer goods.'This implies that the 27 consumer unit goods would be lost for not choosing it and producing 1 unit of capital goods.Thus, option C is the correct answer.
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Writing Reader Friendly Sentence
1. Please be so kind as to send us the infomation about your charges for rental of the large conference room at your hotel on or about March 30 of this year so that we are able to call you and book the room for an event that will be held sometime in June.
Rewrite:
Answers
Answer:
see below
Explanation:
Please send us an invoice for renting the large conference room at your hotel. We used it on or about March 30 of this year. We intend to hold another event there sometime in June. Please give us a quotation so that we can call you and book the room.
Chapter 2 Mastery Problem
The T –
Hassan Rahim won a concession to rent bicycles in the local park during the summer. During the month of June, Hassan completed the following transactions for his bicycle rental business:
Chart of Accounts
Cash
Hassan Rahim Capital
Accounts Receivable
Hassan Rahim, Withdrawals
Supplies
Rental Income
Shed
Wages Expense
Bicycles
Maintenance Expense
Accounts Payable
Repair Expense
Concession Fee Expense
June
2
Began business by placing $7,200 in a business checking account.
3
Purchased supplies on account, $150
4
Purchased 10 Bicycles for $2,500, paying $1,200 down and agreeing to pay the rest in thirty days.
5
Purchased for cash a small shed to hold the bicycles and to use for other operations, $2,900
6
Paid cash for shipping and installation costs (considered as an addition to the cost of the shed) to place the shed at the park entrance, $400.
8
Received cash of $470 for rentals during the first week of operation.
13
Hired a part-time assistant to help out on weekends at $7.50 per hour
14
Paid a maintenance person to clean the grounds, $75.
15
Received cash, $500, for rentals during the second week of operation.
16
Paid the assistant for a weekend’s work, $150.
20
Paid for the supplies purchased on June 3, $150.
21
Paid repair bill on bicycles, $55.
22
Received cash for rentals during the third week of operation, $550.
23
Paid the assistant for a weekend’s work, $150.
26
Billed a company for bicycle rentals for an employee outing, $110
27
Paid the fee for June to the Park District for the right to the bicycle concession, $100.
28
Received cash for rentals during the week, $410.
29
Paid the assistant for a weekend’s work, $150.
30
Transferred $500 to personal checking account.
Answers
Answer:
27.
Explanation:
Establishing an online professional network is an important tool for locating career opportunities in the twenty-first century.
False
True
Answers
Answer:
I say your answer option is true. I'm so sorry if my answer ends up being wrong. I tired my best
Answer:TRUE
Explanation:
TIMED QUIZ PLS HELP!!! 10 POINTS
You are using an email marketing service. They charge a setup fee of $250 plus $0.35 per email sent. How much will a 10,000 email mailing cost?
Answers
Answer:
$3,750
Explanation:
Answer:
c) 3,750
Explanation:
knowledge matters
3. Earning of profit is regarded as the main objective of business? Explain by giving any 3reasons
Answers
1) Usually people invest personal savings into starting businesses so that the return (aka profits) can be greater than the investment and they can earn a better living.
2) If profit is earned then the business would have enough money to pay dividends to its investors/shareholders, otherwise it wouldn’t have enough money to give as dividends and it will lose its investors.
3) Profit is required for the business to survive in competitive markets.
If the quantity demanded is greater than the quantity supplied, what will happen to the price?
A. Go up
B. Go up then down
C. Go down
D. Remain the same
Answers
8. You buy a 30-year zero coupon bond which will pay you $10,000 in 30 years at an annual yield of i=1% compounded once per year. A few minutes later the annual yield rises to i=2% compounded once per year. What is the percent change in the value of the bond? (Hint: recall the formula for percent change. The answer should be negative.) 9. You buy a 30 year zero coupon bond which will pay you $1000 in 30 years at an annual yield of i=16.5% compounded once per year. 25 years later it will be a 5 year zero coupon bond. Suppose the interest rate on this bond will be 16.5%, what will the price of this bond be in 25 years?
Answers
Answer:
-74.41%
465.9833221
Explanation:
The computation of percent change in the value of the bond is shown below:-
Price at 1% = $10,000 ÷ 1.01^30
= 7,419.23
Price at 2% = $10,000 ÷ 1.02^30
= 5,520.71
Percentage change in price = 5,520.71 ÷ 7,419.23
= -74.41%
The computation of the price of this bond be in 25 years is shown below:-
Price after 25 years: $1,000 ÷ 1.165^5
= 465.9833221
The percentage change in the value of the bond is 25.6% and the price of the bond in 25 years will be $465.98
Data;
Present Value of coupon = $10,000Interest rate = 1%, 2%Time = 30 years.Percentage Change in the Value of the BondThis is calculated by the difference between the value of the interest rate.
Value of zero coupon bond = maturity value * PVF (r%, n)
The value of the bond at 1%
[tex]10000* PVF(1\%, 30)\\10000 * 0.7419 = 7,419.23[/tex]
The value of the bond at 2%
Value of zero coupon bond = maturity value * PVF (r%, n)
[tex]10000*PVF(2\%, 30)\\10000*0.5521 = 5521[/tex]
The percentage change is
[tex]\% change = \frac{previous value - present value}{previous value}\\\% change = \frac{7419.23-5521}{7419.23}\\ \% change = 25.6\%[/tex]
The percentage change in the value of the bond is 25.6%
b)
The cost of the zero coupon is equal to the present value of the future cash flow which is discounted at it's rate of interest. The period of discounting is the same as the period which the value needs to be determined.
Period = 5 yearsRate = 16.5% = 0.165PV = 1000[tex]p = \frac{1000}{(1+0.165)^2}\\p = 465.98[/tex]
The price of the bond in 25 years will be $465.98
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Savings should be treated as another type of
Answers
Ian is interested in purchasing bonds, but he is looking for bonds that aren’t related to the government. Which type of bonds would you suggest he purchase?
treasury bonds
municipal bonds
corporate bonds
general obligation bonds
Answers
Answer:
The principal of a Brady bond is backed by U.S. Treasury bonds that are deposited with the Federal ... A corporate bond has a 12% nominal yield. ... General Obligation Bond's credit risk:.
Explanation:
try it
Treasury bonds are the type of bonds would you suggest the purchase. Hence, option A is correct.
What is Treasury bonds?Until they complete, Treasury bonds provide a fixed rate of interest every six months. They are given out for 20 or 30 year contracts. Treasury Direct is where a person may purchase Treasury bonds from a financial institute. Additionally, a person can purchase them from a bank or broker.
Treasury bonds are among the safest assets a person can buy because they are supported by the full faith and credit of the United States Government. They often don't provide a very high return because there is so little chance that you will lose money.
Thus, option A is correct.
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The basic economic problem results from not having enough resources to satisfy every need. a. True b. False
Answers
Answer:
True
Explanation:
Because the less product means less sales and less happy people. Hope this helps.
how has smartphones product changed the way business is conducted? What business innovations have occurred as a result of this product being offered?
Answers
Answer: that make business communications more polished than ever before. No longer limited to voice only, we can now send various media through text messages, and other platforms. What business innovations have occurred as a result of this product being offered and it and how it is achieved - include Outcome-Driven Innovation and "Jobs.
Explanation: i know its right. I hope it helps.
The main function of a high-risk investment is to:
A. make sure that an investment does not lose money.
B. make a variety of investments to balance risk and reward.
C. protect an investment from government fees and taxes.
D. quickly earn as much return on investment as possible.
Answers
The main function of a high-risk investment is that one quickly earn as much return on investment as possible.
The advantages of high risk investments are:
Investors can earn huge returns in a very short period of time Investor are able to purchase and sell the securities with ease.Investors can earn capital gains as well as dividends on their investments.The reason for investment is for profit or returns. it often involves risk.
Conclusively, Every investor invests with a specific objective at heart, and most investment has its own unique set of benefits and risks.
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Which of the following describes the business ethical climate in the 1960s?
A.)Healthcare emphasized
B.)Public pushed for corporate accountability
C.)Anti-war sentiment
D.) Major industries riddled by scandal
please help me i need answer by today
Answers
Mostly D.
No EPA: rivers so fouled by raw sewage and fuel contamination there were literally fires on the surface of some near major industries.
The military industrial complex was reaping large profits off Cold War and later Vietnam war.
Not all business were culpable but major reforms and legislative actions had to be enacted forcing the abusers to clean up their act.!
What is one big decision you have made in the last few months? How did you make that decision?
Answers
Answer:
Decided to setup my new pc. The urge of having something new is what made me do it.
Explanation:
100% :-)
Answer:decided to go into construction
Explanation: