Answer:
the answer for the first question is $166667.
the answer for the second question is $210526
the answer for the third question is An inverse.
Explanation:
given information that i will invest in a $10000 scholarship that will pay forever.
the interest rate charged is 6.00% per annum therefore this is a perpetuity present value problem where there is streams of income forever therefore we use the formula :
Pv of perpetuity= Cf/r
where Cr is the cash flows payed by the single investment forever in this case $10000 then r is the interest rate of the investment amount which is 6% in this case.
Pv of Perpetuity= $10000/6%
=$166667 therefore i must invest this amount to get the scholarship running with streams of $10000 forever.
in the second problem if now the interest rate is changed from 6% to 4.75% then the amount to be invested would be :
Pv of perpetuity = $10000/4.75%
=$210526 therefore this is the amount to be invested for a forever $10000 stream of incomes for a scholarship.
the relationship is indirect cause as the interest rate decreases the present value of the perpetuity that must be invested increases.
Answer:
strength
Explanation:
When you are performing a SWOT analysis, you must analyze both internal and external factors. Internal factors include strengths and weaknesses, while external factors include opportunities and threats:
- strengths: analyses what does your company do well and distinguish it from the competition.
- weaknesses: analyses what are your company's weak spots and what does your competition do better than you.
- opportunities: new situations that can favor your company.
- threats: situations that can negatively affect your company.
Answer:
Option (a) is correct.
Explanation:
Pretax income = Contribution - Fixed cost
Contribution = Pretax income + Fixed cost
= $1,824,000 + $1,444,000
= $3,268,000
Sales - Variable Cost = Contribution
Variable Cost = Sales - Contribution
= (380,000 electric screwdrivers × $20.40 each) - $3,268,000
= $7,752,000 - $3,268,000
= $4,484,000
