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lana66690 [7]
2 years ago
5

An investment of $210 produces a perpetual stream of cash inflows. Next year, the cash inflow will be $10.50, and the cash inflo

w will grow at 5% per year. What is the internal rate of return on this investment?
Business
1 answer:
svetlana [45]2 years ago
8 0

Answer:

The answer is the internal rate of return on this investment is 10%.

Explanation:

The internal rate of return is the discount rate bringing the present value of the perpetual stream of cash inflows equal to its initial investment which is $210.

We apply the formula for calculating the present value of growing perpetuity to find out the internal rate of return, which is denoted as X in the below equation:

10.5/ ( X - 5%) = 210 <=> X - 5% = 10.5 / 210 = 5% <=> X = 5% + 5% = 10%.

So, the internal rate of return on this investment is 10%.

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The idea for "price profit," an app that businesses can use to track their revenue, profit, and payroll, is protected by
egoroff_w [7]

Answer: Copyright law

Copyright is security for tangible aspects of an idea. It is intended to give the creator of something original the ability to use and make money from it, without others being able to use it themselves. There are a number of limitations that do allow for a widespread use, they protect the derivatives of an idea also called intellectual property. Copyright tends to cover literary and artistic work e.g. books, movies. To get a better idea copyright is the reason you just can’t print and sell harry potter books or download pirated movies

Since the "<em>price profit"</em> app is an idea it is protected by the copyright law.


7 0
2 years ago
Read 2 more answers
Which of the following statements is true regarding a work team?A) Work teams are rarely used in organizations today.B) Work tea
Lyrx [107]

Answer:

C) Work teams generate positive synergy through coordinated effort.

Explanation:

<u><em>Work teams is a team formed with number of individuals working for the same goal, who posses different talents and values, and joint together, providing a positive synergy in the team, towards the common goal.</em></u>

Work teams are focused and for reaching the goals, distribute the work among themselves through a facilitator, who is said to lead the work team, in the process of achieving a common goal.

Therefore, correct statement is:

Statement C

3 0
2 years ago
In class, professor miller discussed the reason that the money spent on trade promotions was much higher than the money spent on
miv72 [106K]
The correct answer is D

<span>Consumer promotions negatively impact the value of the brand
</span>
<span><span> Research has traditionally posited that sales promotions erode <span>brand equity. There is traditionally high propensity between brand loyalty and demand, which is influenced </span></span>by  consumer promotions.

</span>
3 0
2 years ago
Owen expects to receive at the end of next year from a trust fund. If a bank loans money at an interest rate of ​, how much mone
Nezavi [6.7K]

Answer: a) $18,605

Explanation:

The amount he can borrow today will be an amount that when grown at a rate of 7.5% per year will equal $20,000 in a year.

20,000 = Amount + ( Amount * rate * time)

20,000 = Amount + (7.5% * Amount)

2,000,000 = 1.075 * Amount

Amount = $18,605

4 0
2 years ago
Suppose that in a month the price of movie rentals decreases from​ $3.25 to​ $3. At the same​ time, the quantity of movie rental
Sergeeva-Olga [200]

Answer:

The correct answer is option a.

Explanation:

The initial price of movie rentals is $3.25.

The initial quantity is 100.

The price falls to $3.

This causes demand to rise to 120.

The price elasticity of demand a ratio of change in quantity demanded to change in price level.

The elasticity is calculated at -2.25, through the process given in images.

The price elasticity of demand here is greater than 1 which means it is elastic.

So, option a is the correct answer.

4 0
2 years ago
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