The present value of the given cash flow stream at a rate of 10.0% for all the years that is from year zero to year three is $10,777.50. Hence, Option B is correct.
<h3>What is a cash flow stream?</h3>
For describing any business proposal, there are very specific requirements, but the two things that are majorly required are cash flow instances and cash flow stream.
A cash flow stream is basically a kind of specific amount that sometimes flows into or sometimes flows out of an organization. It is basically for a particular time period, which can be calculated with the help of some proposal.
Therefore, the given data after doing these required calculations when the cash flow is calculated at a rate of 10.0%, the amount is $10,777.50. Option B is correct.
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The complete question is attached in text form:
What is the present value of the following cash flow stream at a rate of 10.0%?
Years: CFs:
0 $750
1 $2,450
2 $3,175
3 $4,400
a. $8,283.53
b. $10,777.50
c. $10,866.57
d. $7,749.11
e. $8,907.02
Answer and Explanation:
The computation is shown below:-
a) raw-materials is
= (8,000 - 7,600) × $80
= $32,000
b) work in process 7,500 batteries x $80 x 10%
= $60,000
c) Finished goods = 7,500 batteries × $80 × 90% × 30%
= $162,000
d) cost of goods sold 7,500 batteries x $80 × 90% × 70%
= $378,000
e) selling expense is
= 100 × $80
= $8,000
Total 8,000 batteries purchased × $10 per battery is
$80,000
2. Specification is shown below:
a) rawmaterials stock $32,000 Balance Sheet
b) work inprocess $60,000 BalanceSheet
c) Finishedgoods stock $162,000 BalanceSheet
d) cost of goodssold $378,000 IncomeStatement
e) sellingexpense $8,000 IncomeStatement
Answer:
A.) private, nonrival, and excludable
B.) Common resources
C. Faster
Explanation:
A. A privately owned forest is a private good. This goods ownership is restricted to those that bought it. No one else shares in the use of this good. Therefore the answer here is that it is private, non rival and also excludable.
B. If anyone is able to enter a government forest legally it means it is a common good. Common goods are goods with rivalry but are non excludable.
C. The rate of logging in a government owned forest would be faster since there is little cost to cutting the trees, especially when there is no regulation.
Answer:
B) diminishing marginal utility
Explanation:
The law of Diminishing marginal utility states that utility falls as consumption increases.
The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
Because of diminishing marginal utility, consumption can be encouraged by reducing price.
As utility falls, consumers would be unwilling to buy more goods at the same price, therefore it would be reasonable to reduce price to encourage consumption.
