You are offered Birr 1,000 today, Birr 10,000 in 12 years, or Birr 25,000 in 25 years. Assuming that you can earn 11 percent on your money, which offer should you choose?

Answers

Answer 1

Based on the amounts that you are offered and their present values, the offer you should pick is Birr 10,000 in 12 years.

Which offer should you pick?

You should pick the offer with the highest present value.

Offer 1 present value:

= Birr 1,000

Offer 2 present value:

= 10,000 / (1 + 11%)²

= Birr 2,858

Offer 3 present value:

= 25,000 / (1 + 11%)³

= Birr 1,840

In conclusion, option 2 has the highest present value and so should be picked.

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Related Questions

Why does an excise tax on gasoline exist?

Answers

To fund annual highway construction, maintenance, and mass transit.

Previously, an organization reported that teenagers spent 4.5 hours per week, on average, on the phone. The organization thinks that, currently, the mean is higher. Fifteen randomly chosen teenagers were asked how many hours per week they spend on the phone. The sample mean was 4.75 hours with a sample standard deviation of 2.0. Conduct a hypothesis test.

Answers

The statement is true about that the average time spend by the teenagers spent 4.5 hours per week as it is concluded from the hypothesis test.

What is  hypothesis test?

Hypothesis test is the test evaluation of the assumption test like in the survey parameters,  hypothesis test is different in every case it depends upon the data and the reason of the analysis, it is tested by using the sample data.

Thus, the statement is true.

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When creating a stacked chart to portray the breakdown of the income statement, the following item is not included

Answers

The Net income is the item that will not be included when creating a stacked chart to portray the breakdown of the income statement.

What is a stacked chart?

This refers to a column chart where multiple series of the data representation are stacked over each other.

Because the Net income is an item that is derived at the conclusion of an income statement, its will not be included when creating a stacked chart to portray the breakdown of the income statement.

Missing options "Revenue COGS Salaries 15 Marketing Rent Pr Tax View Marked Questions Net Income"

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Which form of business ownership is an ideal way to test new business ideas?

Answers

Sole proprietorship is a business ownership that ideal way to test new business ideas

What are new business idea?

This are ideas that have not been existing before, which an individual uses to improve on his or her business.

It could be a collective idea or an individual idea.

Therefore,

Sole proprietorship is a business ownership that ideal way to test new business ideas

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explain two strategy that can be used to mitigate against this economic challenge

Answers

Answer:

solo 1 :(

Explanation:Esto depende de las circunstancias de cada país, pero incluyen aplazar el pago de impuestos, otorgar subsidios salariales y transferencias monetarias a los grupos más vulnerables; ampliar el seguro de desempleo y la asistencia social, y ajustar temporalmente las garantías de crédito y las condiciones de los préstamos

If Depressants such as alcohol, ___________and sedatives affect the central nervous system by slowing down or depressing reflexes and coordination.you are experiencing any drug __________, don't drive.

Answers

Answer:

The answers are in the image for the first one

Explanation:

hope this helps!

Consider the following scenario analysis:



Rate of Return
Scenario Probability Stocks Bonds
Recession 0.30 −6 % 15 %
Normal economy 0.60 18 % 8 %
Boom 0.10 26 % 5 %


a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms?



multiple choice
No
Yes


b. Calculate the expected rate of return and standard deviation for each investment. (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.)







c. Which investment would you prefer?

Answers

Based on the scenario analysis on stocks and bonds, we know the following:

Treasury bonds will provide a higher return in a recession than in a boom. The expected return of Bonds is 9.8% and that of stocks is 11.6%. The standard deviation of Bonds is 9.24% and that of stock is 11.76%.

What does the scenario analysis on Bonds and Stocks show?

In a recession, Bond returns will be 15%. This is much higher than Bond returns in a boom of only 5%.

The expected return on bonds will be:

= ∑(Probability of Scenario x Returns in scenario)

= (0.30 x 15%) + (0.60 x 8%) + (0.10 x 5%)

= 9.8%

The expected return on stocks will be:

= (0.30 x -6%) + (0.60 x 18%) + (0.10 x 26%)

= 11.6%

Using a spreadsheet, you can input the expected returns of the stocks and the bonds to find the standard deviation to be 9.24% and 11.76%, respectively.

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Problem solving is defined as

Answers

Answer:

Problem solving is the act of defining a problem; determining the cause of the problem; identifying, prioritizing, and selecting alternatives for a solution; and implementing a solution

Explain how scarcity relates to the decision you made as the president of the United States.

Answers

Because scarcity increases negative emotions, it ends up affecting one's decisions. Socioeconomic scarcity can be caused by depression or anxiety.  A president would be making decisions based on the negativity. But in the U.S.A the government deals with scarcity by implementing quotas on how much people can buy.

Hope this helps,

ROR

Question 7 of 10
The Better Business Bureau maintains business profiles weighing:
A. the number of legal actions against the number of positive online
reviews a company receives.
OB. the number of stars and reviews a company receives online.
C. the number of unresolved complaints and legal actions against a
company.
OD. the number of employees and employee compensation in a
company

Answers

The Better Business Bureau maintains business profiles weighing by B. the number of stars and reviews a company receives online.

What is Better Business Bureau?

It should be noted that the Better Business Bureau builds a foundation of trust for the employee and the consumers to count on.

Here, the Better Business Bureau maintains business profiles weighing by reviewing the number of stars and reviews a company receives online.

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Spectrum uses its sales reports broken down by geographic regions as part of its marketing research to determine which markets are most rapidly adopting fiber-optic internet connections. In this example, Spectrum is using

Answers

The fact that Spectrum breaks its sales reports down into geographic regions is an example of internal secondary data.

What is internal secondary data?

When data is said to be secondary, it means that it is derived from data that was compiled for other reasons.

When this secondary data is compiled from reports that only a company has access to, this is internal secondary data. The sales reports of Spectrum were compiled to report sales and are available to Spectrum alone.

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An example of a quantity restriction is
A.
price supports in agriculture.
B.
an import quota.
C.
the minimum wage.
D.
rent controls.

Answers

An example of a quantity restriction is an import quota. (Option B). See explanation for same below.

What is import quota?

Import quotat is a kind of restriction that is used to control the maount of goods that is allowed into a country.

Sometimes it is used to restrict the quality of goods whose consumption the government wants to discourage.

Hence, it is correct to state that an example of a quantity restriction is an import quota. (Option B).

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Pretty lady cosmetic products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers. Assume sales of $1,200,000 and cost of goods sold of $900,000. Determine the average investment in accounts receivable, inventories, and accounts payable. What would be the net financing need considering only these three accounts

Answers

Based on the sales, cost of goods, and days on average, the average investment of Pretty Lady Cosmetics is:

Average Receivables - $115,068.50.Average Inventories - $36,986.30.Average payables - $96,630.14.Net financing needs - $53,424.66.

What are the average investments for Pretty Lady Cosmetic Products?

The Average Receivables are:

40 days = Average AR ÷ (1,200,000/365)

= $115,068.50

The Average Inventories:

15 days =  Average inventory ÷ COGS per day

15 =  Average inventory  ÷ (900,000 / 365)

= $36,986.30

The Average payables:

40 days = Average payables ÷  COGS per day

40 = Average payables ÷  (900,000 / 365)

Average payables = $98,630.14

Net financing needs:

= Average Inventories + Average Receivables -  Average payables

= 115,068.50 + 36,986.30 - 98,630.14

= $53,424.66

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Assume that the traffic to the web site of Smiley’s People, Inc., which sells customized T-shirts, follows a normal distribution, with a mean of 4.54 million visitors per day and a standard deviation of 900,000 visitors per day.
(a) What is the probability that the web site has fewer than 5 million visitors in a single day? If needed, round your answer to four decimal digits.

Answers

The probability of the website of Smiley People Inc. having fewer than 5 million visitors will be 0.7054.

What is probability?

The chances of occurrence in a given condition, where the number of observations and the conditions are predetermined, is known as the probability.

Hence, the significance of probability of Smiley Peoples Inc. is as computed above.

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When the sale of traditional soft drinks declined, many manufacturers realized the demand for sugar-free and sports drinks went up. They responded by creating entirely new categories of healthier drinks to appeal to the marketplace. The soft drink industry then had to create ________ for this new product category.
Question 20 options:

A)

primary demand

B)

par value

C)

secondary demand

D)

utilitarian worth

E)

market value

Answers

The soft drink industry then had to create market value for this new product category. Read below about the concept of market value.

What is a Market Value?

Market value is the amount for which something can be sold on a given market. Market value is also used as interchangeably with open market value, fair value or fair market , although these terms have distinct definitions in different standards, and differ in some circumstances.

Therefore, the correct answer is market value.

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The most common term for marginal utility is

Answers

Answer:

The concept of marginal utility is used by economists to determine how satisfaction levels influence customer decisions. The law of diminishing marginal utility has also been found by economists. It describes how the first unit of an item or service consumed has more utility than subsequent units.

Explanation:

Answer:

law of diminishing marginal utility.

Explanation:

Economists use the idea of marginal utility to gauge how satisfaction levels affect consumer decisions. Economists have also identified a concept known as the law of diminishing marginal utility. It describes how the first unit of consumption of a good or service carries more utility than later units.

Calculating changes in price level

Answers

Based on the given costs at the end of each year, the price index for all given years are:

2006 = 100.2007 = 120.2008 = 132.

What are the price indexes?

This can be found by the formula:

= Total cost in current year / Total cost in base year x 100

2006 is the base year.

Price index in 2006:

= 1,575 / 1,575 x 100

= 100

Price index in 2007:

= 1,890 / 1,575 x 100

= 120

Price index in 2008:

= 2,079 / 1,575 x 100

= 132

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Peace and prosperity will flourish if we can find the one best way to divide existing resources among nations.
True or False

Answers

Peace and prosperity may not flourish if we can find the one best way to divide existing resources among nations. Therefore, it is false.

What is prosperity?

Prosperity is flourishing, thriving, good fortune, and successful social status.

In this case, peace and prosperity may not flourish if we can find the one best way to divide existing resources among nations. It is about the effective utilization of resources.

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Which statement about free on-line translation is true?

A: You are allowed to use free on-line transition software at your discretion

B: You are only allowed to use free on-line translation software if it is for a short, simple project

C: Bon Secours Mercy Health's policy is to never use free on-line translation software

Answers

The statement about free on-line translation that is true is that C. Bon Secours Mercy Health's policy is to never use free on-line translation software.

What is translation?

It should be noted that translation simply means changing the form of a language to another form.

In this case, the statement about free on-line translation that is true is that Bon Secours Mercy Health's policy is to never use free on-line translation software.

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An effective marketing mix for the services industry is the _____.

A. neither

B. seven P's

C. both

D. four P's

Answers

An effective marketing mix, which is suitable for the services industry, is the seven P's.

What is a marketing mix?

A strategy of different mixes of external and internal factors used by a firm for the purpose of achieving its organizational goals, intended to increase the sales, is known as a marketing mix.

Hence, option B holds true regarding a marketing mix.

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Creative and innovative

Answers

A creative innovation is bringing about something unique and different.

What is creativity?

Creativity is the ability to imagine something unique or new that have not been in existence.

It could also be a modification to what have been existing before.

Therefore, A creative innovation is bringing about something unique and different.

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What trigonometric expression can be used to find the value of x? Replace a and b with the correct values.

A triangle with base side labeled 12 and vertical leg labeled x. Angle at top vertex is labeled 25 degrees. Angle at right vertex is marked right angle

Answers

The trigonometric expression that can be used to find the value of x is tan(x) = 12/x

How to determine the trigonometric expression?

From the question, we have the following parameters:

Vertical Leg = xBase length = 12Angle at the vertical side = 25 degrees

The measure of x is then calculated using the following tangent ratio

tan(x) = Base length/Vertical leg

Substitute known values

tan(x) = 12/x

Hence, the trigonometric expression that can be used to find the value of x is tan(x) = 12/x

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Find the sales tax. Total selling price: $2,520. Florida sales tax rate: 6 percent. Gainesville sales tax rate: 1 percent. Find the state tax city and city tax.

Answers

The state tax city and city tax based on the information will be $151.20 and $25.20 respectively.

How to calculate the tax?

The sales tax based on the information given will be:

= 6% × $2520

= 0.06 × $2520

= $151.20

The city tax will be:

= 1% × $2520

= $25.20

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The supply and demand curve is a tool used by entrepreneurs.
True or false

Answers

Answer:

TRUE

Explanation:

Free​ Internet?
Everyone should have free Internet access to​ education, news,​ jobs, and more.

The graph plots education and news on the x​-axis and other goods and services on the y​-axis.
Draw the​ economy's PPF before the Internet and label it PPF0.
Draw the PPF after the arrival of the Internet if the effect on education and news is greater than on other goods and services. Label it PPF1.

Answers

Answer:

graph below

PPF shifted rightward, but shift on education and News is higher because effects of Internet is higher in Education and News

Explanation:

With the​ Internet, more education and news and more other goods and services can be produced. The production of other goods and services increases by less than the increase in education and news when all resources are used. The PPF shifts outward.

Most applications will ask you to provide all of the following information except.

A. the date you can start work.

B. days and hours that you are available to work.

C. your desired salary or wage.

D. how long you want to work for the establishment.​

Answers

D most applications only ask whether it is seasonal or part/full time but never exactly how long you plan to work there

what is local business​

Answers

Is a company or organization that sells products or services to a local population of individuals

1. You are offered Birr 1,000 today, Birr 10,000 in 12 years, or Birr 25,000 in 25 years. Assuming that you can earn 11 percent on your money, which offer should you choose?

Answers

Based on the options given of different cashflows, the offer you should accept is Birr 10,000 in 12 year.

Which offer should you accept?

Find the present values of each offer:

Offer 1:

= Birr 1,000

Offer 2:

= 10,000 / 1.11¹²

= Birr 2,858.41

Offer 3:

= 25,000 / 1.11²⁵

= Birr 1,840.20

The offer with the highest present value is the second offer of Birr 10,000 in 12 years.

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After Luke tries to understand Wang-Li’s family situation, Wang-Li shares concerns about his ability to complete his work responsibilities. Then, Luke asks questions and listens carefully to further understand Wang-Li’s worries about the work. Luke learns that Wang-Li is especially worried because his family has invested so much into his career success. Which element of EQ is most displayed in this case?

Answers

Answer:

Empathy

Explanation:

There are two definitions I would use to describe empathy as:

1. The psychological identification with or vicarious experiencing of the feelings, thoughts, or attitudes of one another

2. The imaginative ascribing to an object, as an natural object or work of art, feelings or attitudes present in oneself

Luke was being empathetic when he tried to understand Wang-li's family situation with his work. To explain better, empathy can be shown by listening and understanding.

Tom and Amanda Jackson

Answers

Answer:ikr

Explanation:

Answer:

Question: In 2021, Tom And Amanda Jackson (Married Filing Jointly) Have $200,000 Of Taxable Income Before Considering The Following Events: (Use The Dividends And Capital Gains Tax Rates And Tax Rate Schedules.) On May 12, 2021, They Sold A Painting (Art) For $110,000 That Was Inherited From Grandma On July 23, 2019. The Fair Market Value On The Date Of Grandma’s

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See the answer

In 2021, Tom and Amanda Jackson (married filing jointly) have $200,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.)

On May 12, 2021, they sold a painting (art) for $110,000 that was inherited from Grandma on July 23, 2019. The fair market value on the date of Grandma’s death was $90,000 and Grandma’s adjusted basis of the painting was $25,000.

They applied a long-term capital loss carryover from 2020 of $10,000.

They recognized a $12,000 loss on the 11/1/2021 sale of bonds (acquired on 5/12/2011).

They recognized a $4,000 gain on the 12/12/2021 sale of IBM stock (acquired on 2/5/2021).

They recognized a $17,000 gain on the 10/17/2021 sale of rental property (the only §1231 transaction), of which $8,000 is reportable as gain subject to the 25 percent maximum rate and the remaining $9,000 is subject to the 0/15/20 percent maximum rates (the property was acquired on 8/2/2015).

They recognized a $12,000 loss on the 12/20/2021 sale of bonds (acquired on 1/18/2021).

They recognized a $7,000 gain on the 6/27/2021 sale of BH stock (acquired on 7/30/2012).

They recognized an $11,000 loss on the 6/13/2021 sale of QuikCo stock (acquired on 3/20/2014).

They received $500 of qualified dividends on 7/15/2021.

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