Environmental forecasting does not include reasonable predictions regarding the lack of intensity of environmental change.
How does environmental forecasting work?Environmental forecasting is a technique where managers make decisions today that will assist the company deal with the environment of tomorrow by attempting to foresee the future characteristics of the organizational environment.
What are the techniques for predicting the environment?In this approach, client intentions are predicted using postal questionnaires, phone interviews, or in-person meetings. An anticipatory survey falls under the category of sampling because the respondents are meant to reflect a larger population.
Why is it vital to forecast the environment?Accurate projections help utilities satisfy energy demand and prevent network undesired events like load shedding and blackouts.
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Currently, a government's budget is balanced. The marginal propensity to consume is 0.80. The government has determined that each additional $10 billion in new government debt it issues to finance a budget deficit pushes up the market interest rate by 0.20 percentage points. It has also been determined that every 0.10 (one-tenth) percentage-point change in the market interest rate generates a change in planned investment expenditures equal to $4 billion. Finally, the government knows that to close a recessionary gap and take into account the resulting change in the price level, it must generate a net rightward shift in the aggregate demand curve equal to $200 billion.
Assuming that there are no direct expenditure offsets to fiscal policy, calculate the increase in government expenditures necessary to close the recessionary gap. (Hint: How much private investment spending will each $10 billion increase in government spending crowd out?)
$ ___ billion. (Enter your response rounded to two decimal places.)
The amount of $25.00 billion will be the private investment spending that each $10 billion increase in government spending will crowd out.
What is the explanation on government expenditure?When the government expenditure increased by $1 billion, the planned investment expenditure will falls by $0.20 billion., hence, for each $1 billion increase in government spending, there is a net change in intial spending of $0.2 billion
Also, the aggregate demand curve will shift to the right by the net change in spending multiplied by the multiplier, which equals 1- MPC.
Hence, the net increase in AD due to the $1 billion increase in government expenditure is equals what is known as the net multiplier.
Therefore, the amount of $25.00 billion will be the private investment spending that each $10 billion increase in government spending will crowd out.
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International trade policies benefiting from specialization and comparative advantage can make the average worker better off, but a tradeoff is ________.
The trade off is workers could lose their jobs.
What is the trade of?Trade policies state that a country should specialise in the production of the good for which it has a comparative advantage in. A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
When a country specialise in the production of the good for which it has a comparative advantage in, workers that works in the industry the country does not have a comparative advantage in would lose their jobs.
Here are the options:
is worker productivity could go down consumers could pay more for products workers could lose their jobsTo learn more about comparative advantage, please check: https://brainly.com/question/25139916
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Rice Corp. noticed that a check written by the company for utility expense in the amount of $1,000 was incorrectly recorded by the bank as $1,100. What entry needs to be recorded to correct this error
No entry is required on the company's books.
What is a journal entry?The date, the amount to be credited and debited, a brief description of the transaction, and the accounts involved are all included in each journal entry along with other information pertinent to a single business transaction. Depending on the business, it could include a list of the impacted subsidiaries, tax information, and other details.
Journal entries are of six main types, that is:
Opening EntriesTransfer EntriesClosing EntriesAdjusting EntriesCompound EntriesReversing EntriesTo know more about Adjusting Entries refer to: https://brainly.com/question/13449237
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Evidence has suggested that borrowing is favored _____ than taxation by politicians to finance fiscal policy spending, which has led to a(n) _____ of the federal government over the last few decades.
Evidence has suggested that borrowing is favored less favored than taxation by politicians to finance fiscal policy spending, which has led to a(n) expansion of the federal government over the last few decades.
The process of raising funds or capital for finance, any kind of expense. Consumers, businesses, and governments often don't have the money to make money, pay their debt, or complete other transactions, and they don't have the money they need to run their businesses.
You have to borrow or sell stock to get it. Savers and investors, on the other hand, accumulate funds that, when used productively, can generate interest and dividends. These savings may take the form of savings deposits, savings loan portions, or pension and insurance qualifications.
Borrowing with interest or investing in stocks can be a source of funds for investment trusts. Finance is the process of directing these funds in the form of credits, loans, or investment capital to the economic agents who need or use them most. Can be productive.
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When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is
The most suitable depreciation method is the unit of output method.
What is the unit of output method?The unit of output method allocates depreciation expense based on the output of the machine in a particular year.
For example if a machine that costs 10,000 and has a salvage value of 1000 produces 100 output in year 1. The total output capacity of the machine is 1000.
Depreciation in year 1 = (100 / 1000) X (10,000 - 1000)
0.1 X 9000 = 900
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Jaclyn recently started working at a major accounting firm. One of the first things her supervisor provided her with was a large white notebook that contained rules and regulations on just about every aspect of the firm's business. As a recent business graduate, Jaclyn realized that the accounting firm operated in a(n) __________ environment.
Jaclyn is working in a bureaucratic work environment. Any organization with numerous departments, each with the capacity to make policy decisions, is considered a bureaucracy.
What is a bureaucratic work environment?A bureaucracy is a business, whether it is publicly or privately owned, that consists of a number of departments or groups that make policy. Bureaucrats are the colloquial term for people who work in bureaucracies. Many countries' hierarchical administrative structures are likely the best-known example of a bureaucracy. A bureaucratic work environment is characterized by:
intricate, multi-level administrative structurespecialized departmental trainingstrict authority separationformal rules or operating standards that are universalYou can learn more about bureaucratic work environment using the following link:
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Suppose Congress enacts a new Medicare benefit and finances it by raising payroll taxes such that each year's additional outlay is matched by additional revenue. Would this be considered fiscally sustainable
If year's additional outlay is matched by additional revenue. No, it will not be considered fiscally sustainable.
What is Medicare?Medicare can be defined as a medical coverage that help to cover medical expenses of those under the plan.
Based on the details given, it will not be considered fiscally sustainable because it is still a pay as you go plan, which tend to shifts the burden to future generations.
Therefore it will not be considered fiscally sustainable.
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The difference between a healthcare provider's stated charge and the payment agreed to with a third-party payer (such as an insurance company) is called:
The difference between a healthcare provider's stated charge and the payment agreed to with a third-party payer (such as an insurance company) is called: Contractual allowance.
Any payment for medical care made by a party other than the patient is referred to as a "third-party payment." It could be either a public or private organization. Instead of paying insurance premiums, the government pays healthcare providers with money gained from the taxes paid by existing workers.The payer, an insurance company or health agency that is not directly involved in the patient's care and pays the doctor, clinic, or other second-party provider for the treatment or services provided to the first party is the third party (patient).
What is contractual allowance?
The difference between what a healthcare provider bills for the service rendered and what it will contractually be paid (or should be paid) based on the terms of its contracts with third-party insurers and/or other third parties is known as a contractual allowance, also known as a contractual adjustment.
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A consultant hired to evaluate Blue Street Bank's business processes and controls judges that they are haphazard and incomplete. Bess, an executive at the bank, wisely says that _____. Group of answer choices they must establish more rigorous management practices to govern their data this is not a significant cause for concern given the nature of their business no action is necessary since this does not violate external regulations while this is a problem, it cannot affect their ability to make good business decisions
Bess, an executive at the bank, wisely says that (C) no action is necessary since this does not violate external regulations.
Who is a consultant?A consultant is a professional who gives advice and other useful services in their field of expertise. Consulting services are often classified as professional services.Who is an executive?A business executive is someone who is in charge of running a company, albeit the particular nature of the function varies depending on the company. Executives are in charge of companies or government bodies. They devise strategies to help their organizations grow.Because the present circumstance does not infringe external regulations, no action is required.
Therefore, the correct answer is (C) No action is necessary since this does not violate external regulations.
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Suppose the economy's aggregate demand (AD) curve initially intersects the aggregate supply (AS) curve on the latter's Intermediate range. In this case, a contractionary fiscal policy will
Suppose the economy's aggregate demand (AD) curve initially intersects the aggregate supply (AS) curve on the latter's Intermediate range. In this case, a contractionary fiscal policy will decrease output but not prices.
A macroeconomic model known as AD-AS, or aggregate demand-aggregate supply, explains price level and production through the interaction between aggregate demand and aggregate supply. The theory put forth by John Maynard Keynes in his book The General Theory of Employment, Interest, and Money serves as the foundation for this statement.
According to Keynes, the equilibrium can only exist when aggregate supply and demand are equal since at that point, there is no propensity for income or output to fluctuate.
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The issues addressed at the Bretton Woods in _____________ included exchange rate disequilibrium, reduction of trade barriers (protectionism), and economic recovery after the war.
The issues addressed at the Bretton woods in 1944 included exchange rate disequilibrium, trade barriers (protectionism) reduction, and economic recovery after the war.
After the second world war, the delegates of 44 countries participated in the Bretton woods conference. The conference was held for 22 days(1st July to 22nd July 1944). The outcome of the Bretton woods conference was a general agreement related to trade, reconstruction of European economics, etc.
The conference resulted in two multilateral institutions and one general agreement:
International monetary funds(IMF).Internation bank of reconstruction and development(World Bank)General agreement on trade and tariffs(GATT).This multilateral institution provides assistance to countries devastated by world wars and the general agreement of trade helped in the economic integration of world economies. This system pegged the currency of countries to the dollar.
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The means by which the U.S. Bureau of Labor Statistics determines who is employed and unemployed is a ______.
If a person does not have a job, has actively sought employment during the previous four weeks, and is currently eligible for employment, they are considered to be unemployed. Any of the following activities can be considered actively seeking employment: Directly contacting: A potential employer or attending a job interview
To aid in public and commercial decision-making, the Bureau of Labor Statistics collects data on the labor market, working conditions, price changes, and productivity in the US economy.
According to BLS, a fully employed economy is one in which GDP is at its potential, the unemployment rate is equal to the nonaccelerating inflation rate of unemployment (NAIRU), and there are no periods of cyclical unemployment.
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A central bank that wants to increase the quantity of money in the economy will: raise the discount rate. sell bonds in open market operations. reverse quantitative easing. buy bonds in open market operations.
The answer is to sell bonds in open market operations.
Open market operations (OMO) means to the practice of buying and selling U.S. Treasury securities by the Federal Reserve (the Fed), along with other securities, on the open market in order to regulate the supply of money that is on reserve in the U.S. banks.
in other words, Open market operations are nothing but the trading of securities by the Fed to regulate the supply of money in the economy.
If the Fed's goal is expansionary, it buys Treasuries in order to pour cash into the banks. This means that the banks sell their bonds.
Which puts pressure on the banks to lend that money out to consumers and businesses.
Interest rates drift downwards as the banks compete for customers. Consumers are able to borrow more in order to buy more. Businesses are eager to borrow more to expand their businesses.
Hence, if the central bank wants to increase the quantity of money in the economy, it will sell bonds in open market operations.
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Statistical arbitrage is a version of a ______ strategy. A. relative value B. directional C. divergence D. market neutral
Statistical arbitrage is a version of a market neutral strategy.
What is a market neutral strategy?A market-neutral strategy is a type of investment strategy that seeks to profit from both increasing and decreasing prices in one or more markets while attempting to completely avoid some specific form of market risk.
Known as a market-neutral strategy, the investment selections seek to avoid significant lossesThe long and short positions serve as a hedge to one another.The two main types of market-neutral strategies are fundamental arbitrage and statistical arbitrage.The main investment objective is absolute returns rather than relative returns.Learn more about market neutral strategy here:
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Statistical arbitrage is a version of a market-neutral strategy. So the correct answer is an option (D) i.e. market neutral.
What is a market-neutral strategy?A market-neutral strategy is a type of investment strategy that seeks to profit from both increasing and decreasing prices in one or more markets while attempting to completely avoid some specific form of market risk.Known as a market-neutral strategy, the investment selections seek to avoid significant lossesThe long and short positions serve as a hedge to one another.The two main types of market-neutral strategies are fundamental arbitrage and statistical arbitrage.The main investment objective is absolute returns rather than relative returns.Learn more about market neutral strategy here:
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Buster Industries pays weekly salaries of $44,700 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is
The adjusting entry for the form on weekly salaries includes a debit to Salary Expense for $12,000 and a credit to Salaries Payable for $12,000.
What are salaries account?In an entry, it will be a debit to the Salary and corresponding credit to the the Bank account.
Because its pays weekly salaries of $44,700 on Friday for a five-day week ending on that day, the adjusting entry will includes a debit to Salary Expense for $12,000 and a credit to Salaries Payable for $12,000.
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What is a meeting in which an independent team of experts provides an in-depth analysis of project results to ensure that team members did the work accurately, completely, and to the right quality standard
The purpose of a technical reviews meeting is to check that the team members completed their tasks entirely, accurately, and in accordance with the required quality standards.
Technical Reviews:
Technical reviews offer a status update and feedback on the goods being evaluated as well as the ongoing project activities. The main way for a project team to share products and expertise, coordinate tasks, monitor risk, and communicate project progress is through technical reviews.
Types of technical reviews
There are mainly 3 types of technical reviews:
Software peer review is the process of evaluating the product's technical content and quality, and it is often carried out by the work product's author and a few other developers.Software Management ReviewSoftware Audit ReviewLearn more about technical reviews here:
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The remedy of quasi-contract generally applies only when __________. Multiple Choice there are more than three parties in a contractual agreement no actual contract exists to cover the dispute the contract is bilateral in nature no more than two parties expressly discuss the terms of their agreement implied warranties are included in a contract
In general, the quasi-contract remedy is only applicable where an actual contract covering the dispute doesn't exist.
How do quasi-contract remedies work?A court may impose an obligation without taking the parties' intentions into consideration because a quasi contract is not a legitimate contract. Restitution or recovery under a doctrine of quantum meruit are frequently used as remedies when a party sues for damages under a quasi-contract.
Is a quasi-contract a legal recourse?"As much as he has deserved" in Latin. An appropriate remedy that makes up for unjust enrichment. A person who has performed services under a quasi-contract may be awarded damages in an amount deemed reasonable. look at Quasi contract (or quasi-contract).
What is a good illustration of a quasi-contract?A person places an online order for some perishable goods by giving his address and making payment for the same. The products are delivered to the incorrect address by the delivery person at the time of delivery. The recipient accepts the order and consumes it rather than rejecting delivery.
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Ryleigh knows that it is crucial to ensure that key business decisions are made using high-quality data. She argues that this is one reason why her firm should invest in _____. Group of answer choices a DDL increased data redundancy improved data management a DaaS
She argues that this is one reason why her firm should invest in (C) improved data management.
What is DDL?
Data Definition Language (DDL) is a programming language that is used to construct and m modify the structure of items in a database by utilizing a predefined command and a specified syntax. Tables, sequences, locations, aliases, schemas, and indexes are examples of database objects.What is data redundancy?
Data redundancy can increase the size and complexity of a database, making maintenance more difficult. A larger database can also result in longer load times and a lot of hassles and disappointments for staff because they will have to spend more time on everyday duties.What is data management?Data management is the technique of gathering, organizing, safeguarding, and preserving an organization's data in order to evaluate it for business decisions. Data management solutions are becoming increasingly important as organizations generate and consume data at unprecedented rates.What is DaaS?Desktop as a Service (DaaS) is a cloud computing solution in which a service provider distributes virtual desktops to end customers via the Internet for a fee per user.Reason -As the definition of data management says it is the technique of gathering, organizing, safeguarding, and preserving an organization's data in order to evaluate it for business decisions.
Therefore, she argues that this is one reason why her firm should invest in improved (C) data management.
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Complete question:
Ryleigh knows that it is crucial to ensure that key business decisions are made using high-quality data. She argues that this is one reason why her firm should invest in _____.
(A) A DDL
(B) increased data redundancy
(C) improved data management
(D) A DaaS
Market share can be measured as the ratio of a firm's Blank______ compared to those of the total industry.
Market share can be measured as the ratio of a firm's Blank production compared to those of the total industry.
What is market share?Market share is used to measure the total amount of sales in a company.
The sale's in measured in percentage and the production also can be measured with it.
Therefore, Market share can be measured as the ratio of a firm's Blank production compared to those of the total industry.
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______ are material items or products that customers will buy to satisfy a want or need. Multiple choice question. Outputs Goods Service Inputs
Goods are material items or products that customers will buy to satisfy a want or need.
In economics, goods are those that fulfill human needs and offer usefulness, such as to a customer buying a pleasant product. It is usual practice to distinguish between transferable products and non-transferable services.In order to live our daily lives, we need goods. We cannot survive without them. However, corporations create them to help us more easily meet our needs and desires. They gain money by doing this.The total sum that your company spent on expenses directly associated with the selling of goods is known as the cost of goods sold. Depending on the nature of your firm, this could also include raw materials, packaging, direct labor involved in making or selling the product, and items bought for resale.Thus this is the answer.
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A project with a life of one year has earnings before interest and taxes of $5,750, fixed costs of $50,000, a selling price of $13 a unit, and a sales quantity of 11,500 units. Depreciation is $7,500. What is the variable cost per unit
$7.50 is the variable cost per unit.
Given selling price is $13 a unit, sales quantity 11,500 units, depreciation is $7,500, EBIT $5,750 and fixed cost of $50,000.
Variable cost is to be computed.
The formula to compute the EBIT is given below:
EBIT = [Units * (Selling price - Variable cost per unit)] - Fixed costs - Depreciation
$5,750 = [11,500 * ($13 - Variable cost per unit)] - $50,000 - $7,500
$5,750 = $149,500 - 11,500Variable cost per unit - $50,000 - $7,500
11,500Variable cost per unit = $149,500 - $50,000 - $7,500 - $5,750
11,500 Variable cost per unit = $86,250
= $86,250 / 11,500
= $7.50
Therefore, the variable sot per unit is $7.50.
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In 2015, California voters backed a $2-a-pack increase in the cigarette tax with the revenue being used to fund health care for the poor. Which principle of fairness would California use to justify this tax hike
the principle that is used to justify this tax hike is the principle of benefits.
principle of benefits-
Most of the people who smoke in US are impoverished, hence, in keeping with principle of benefits whoever gets hold of greater advantages, pays for the ones in need. the tax revenue pays for the health care of the needy and maximum people who smoke are poor.The benefit precept is commonly referred to as a conventional reasoning for the responsibility of taxes. It states that the taxpayer ought to make contributions to the authorities in proportion to the advantages received from the government establishments and programs. The benefit principle applies the common sense that authorities spending ought to be compensated through the those who get hold of them. The US tax scheme does not observe this principle. The US tax device is a progressive or ability to pay precept.Learn more about taxation here: https://brainly.com/question/8394262
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At McDonald's, you can get several items together as a meal, for less than purchasing those items separately. This is an example of Blank______.
Value- Pricing
Value pricing is the strategies whose prices are fixed primarily according to the customers needs.Affordable price attracts more and more customers to come or buy.Prices mainly are fixed according to their customers feedback and their needs.It is also known as customers willingness to pay for the particular product.Two main types of value pricing are:Value added pricingGood value pricingDisadvantagesLimited customersHigh charges- Affect your profitAdvantagesMore loyal customersMore need of your serviceslearn more about this here-
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The study of how decisions are made when strategic interaction between firms exists is known as Group of answer choices Game theory. Contestable market theory. Predatory pricing theory. Market power theory.
The study of how decisions are made when strategic interaction between firms exists is known as game theory.
The study of mathematical models of strategic interactions between rational beings is known as game theory. It has uses in computer science, logic, systems science, and all branches of social science.
The field of applied mathematics known as game theory offers methods for examining scenarios in which parties, or players, make interdependent decisions. Each player must consider the potential decisions or strategies of the other players because of their interdependence.
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Marginal revenue is the change in Group of answer choices None of the Answers are Correct. Total revenue when output is changed. Total revenue when price is changed. Average revenue when output is changed. Average revenue when price is changed.
Marginal revenue is the change in total revenue when output is changed.
Marginal revenue refers to the increase in revenue that is a consequence of the sale of an additional unit of output.
When the level of output increases, marginal revenue decreases as the law of diminishing returns operates. Marginal revenue also refers to the gradual increase in income owing to the sale of an additional unit of output. In a perfectly competitive market, companies seek to produce output to the degree where marginal revenue equals marginal cost. Total output change is linked to the change in total revenue that results in marginal revenue. Marginal revenue helps determine the revenue generation from an additional unit of production which is beneficial for companies seeking to increase profits.Therefore, marginal revenue is the change in total revenue when output is changed.
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You permanently assign employees from different functions to product teams in which they report only to the product team supervisor. What type of organizational structure did you adopt
The type of structure adopted is functional in the organizational structure .
Organizational structureOrganization Structure and Design Use your knowledge of organizational structure to select the term that best completes enrichment . If you want to group people with the same types of his into the same departments the marketing department, the accounting department etc.), you would use a organizational structure. Use your knowledge of organizational structure to select the term that best fits each scenario or description You permanently assign employees from different functions to product teams in which they report only to the product team supervisor What type organizational structure did you adopt? A team-based structure A network structure A lattice structure Read the following brief case study and answer the question that follows. You have recently been assigned responsibility for restructuring your organization. Your company has grown considerably over the past five years, and company leaders recognize that change is needed. The company was founded ten years ago and this is the first time any attention has been paid to how employees are grouped. You understand the importance of the decisions that you are about to make and sit down at your desktop reflect on what the company needs going forward. You decide to group employees based on what they know.
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You see the message "secret formula" on an online advertisement for a weight-reduction product. How should you interpret such a message?
Avoid the product only con artists can use such language.
Online advertisement
Other names of online advertisements are Online marketing, internet advertising, digital advertising, web advertising.Online advertising is the most effective way of expand any business, find new new customers, new job opportunities & attract people from worldwide.Advantages:
Easy to updateQuick deliveryTrackingEasy to select target marketAffordable Cost Improved customer interactionOnline advertising methods
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Maya owes the credit card company $20,000, her adjustable rate mortgage has just gone up, and she has been out of work for three months. Her husband of 15 years just told her he is having an affair and wants a divorce. With that news, she collapsed and had to be taken to the emergency department. According to Selye, Maya is in which stage of the general adaptation syndrome
Maya is in the exhaustion stage of the general adaptation syndrome.
What is the exhaustion stage?This stage is caused by long-term or chronic stress.Long durations of stress can deplete your physical, emotional, and mental resources to the point that your body no longer has the strength to combat stress. You may despair or believe your position is hopeless.The exhaustion stage of the General Adaptation Syndrome is characterized by a rise in resting heart rate, often known as tachycardia. Hypertension is defined as an unprovoked increase in heart rate. Hyperglycemia is a spike in blood sugar.As Maya owns a company and running a business is a headache and she has been out of work for three months in addition her husband told her that he had an affair and filing a divorce made her exhausted and collapsed.
Therefore, Maya is in the exhaustion stage of the general adaptation syndrome.
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On January 1, year 1, Roark Corp. purchased equipment for $120,000. The equipment has a residual value of $20,000, and has a life of 1,000,000 hours. Roark uses the activity-based method of depreciation. In year 1, Roark used the machine 30,000 hours, and in year 2, Roark used the machine 50,000 hours. What is the depreciation expense for year 2
The amount of depreciation expense in year 2 is $5,000.
First, we need to calculate the depreciation rate per unit; the calculation will be as below.
Depreciation per Unit = ( Cost- Salvage Value) / Total Estimated Production Unit
Depreciation per Unit = ($120,000 – $20,000) / 1,000,000 Hours
Rate per Unit = $ 0.1 per Hour
Depreciation Expense = Depreciation Rate per Unit × unit Produced in a Particular Year.
Depreciation Expense = 30,000 Hours × 0.1 per Hour
Depreciation Expense (Total Depreciation) For 1 Year = $ 3,000
Value of Asset after Depreciation = ($ 1,000,000-$3,000) = $ 1,97,000
In 2nd year the said equipment used 50,000 hours then the depreciation amount will be –
Depreciation Expense for year 2 = 50,000 hours × 0.1 per Hour
= $ 5000
Value of Asset after Depreciation = ($1,97,000-$5,000) = $1,92,000.
What is Unit of Production ?The unit of production method depreciation begins when an asset begins to produce units. It ends when the cost of the unit is fully recovered or the unit has produced all units within its estimated production capacity, whichever comes first.
Whereas, according to the formula:
Cost: It includes purchased price, installation, delivery charge, incidental expenses
Salvage Value: It is the value that will receive at the end of the life of an asset.
Estimated Unit of Production: It estimates the unit produced by the asset over its useful life.
Thus, The Roark Corp. should report a depreciation expense of $5,000 in Year 2.
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Using a discount rate of 10 percent, the present value of a $2,500 benefit received five years from now is
Using a discount rate of 10 percent, the present value of a $2,500 benefit received 5 years from now is $1,552.79.
Given the discount rate of 10%, the present value(PV) of a $2,500 benefit received five years from now can be calculated using the formula given below:
[tex]PV = \frac{CF}{ (1 + r) n}[/tex]
PV = Present value
CF = Cash flow = $2500
n = Number of years between the time of the future cash flow and the present day.
r = Discount rate = 10% = 0.1
present value(PV) of a $2,500 benefit received five years from now =
[tex]PV = \frac{2500}{ (1 + 0.1) 5}[/tex]
PV = $1,552.79
Hence, The present value of a $2,500 benefit received in five years, at a 10% discount rate, is $1,552.79.
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