Answer:
$3,438,289
Explanation:
First we need to calculate the future value of investment after 10 years.
A fix payment for indefinite period of time is a perpetuity payment. It will be value using perpetuity formula
Value of investment after 10 years = Yearly cash flow / interest rate
Value of investment after 10 years = $230,000 / 4.5% = $5,111,111
Now we need to discount this value to calculate the amount of deposit required today.
Present value = Future value x ( 1 + r )^-n
Today's value = $5,111,111 x ( 1 + 4.5% )^-9 = $3,438,289
Answer:
Quantitative easing
Explanation:
Quantitative easing is a strategy that is used by governments to ease borrowing rates and encourage economic growth.
This is done by buying up long term securities in the economy thereby increasing money supply.
Cost of money is reduced, that is money can now be borrowed at a cheaper rate.
This is exemplified in this scenario where Fed purchased $300 billion in long-term Treasury securities and $1.25 trillion in mortgage-backed securities.
Strategic Positioning is what <em>Michael Porter</em> defined as "an attempt by an entity to achieve sustainable competitive advantage" through the preservation of its distinctiveness.
- The entity can position itself in the market by choosing from the strategies of differentiation, segmentation, or comparison.
- In addition, Porter noted that using these strategies, an entity can make its products to stand out among its competitors with focused messages for its target customers.
Thus, a product can be positioned in the market by focusing on the product characteristics, quality, luxury value, price, or competitive performance.
Read more about Michael Porter's Strategic Positioning at brainly.com/question/14820016
Answer:
Answer ; (a) Profit = 7,197.59
(b) Break-even rate = 15.10%
Explanation:
Question 1 :
Ahmed should opt for big bonus on signing day of the contract and smaller payments in future. Because as per time value of money concept money received tomorrow is lesser than the same money received today this means you can buy lesser things from same amount of money compared to things bought today. So as per this concept if Ahmed receives big bonus on signing contract and smaller payment in future will have greater value compared to other option i.e. small amount now and bigger payments in future.
Where as Aljazeera would like to have small amount now and bigger payments in future by opting this option club would end up paying lesser money in today's time. Than means present value of this option would be lesser than the another option which is paying big bonus today and smaller future payments.
Question 2:
Present value of generator = FV / (1+r)^n
= 165,000 / (1 + 0.13)^4
= 165,000 / 1.6305
= 101,197.59
Profit = 101,197.59 - 94,000 = 7,197.59
The firm will make profit of 7,197.59 if they sell this generator.
Break-even rate can be calculated by using the following excel formula:
=RATE(nper,pmt,pv,fv)
=RATE(4,0,-94000,165000)
= 15.10%
Break-even rate = 15.10%
Answer:
The correct answer is A. Seasonality
.
Explanation:
Seasonality in this case refers to the drop in sales in a certain period of time. This phenomenon occurs as a consequence of external variables that directly affect people's purchasing decision. There are products that are sold more in certain seasons of the year than in others, and in that case it is important that the company has the ability to diversify its product offering so that absorption can occur and there is no strong impact on results.
