The theory of Managerial capitalism states that the primary obligation of business leaders is to serve the interests of stockholders by maximizing profits.
What is Managerial capitalism?Managerial Capitalism is known to be a system that brought a new way or system of getting to know of the changing structure of a given economy via the introduction and behavior of a new class which are the managers.
Note that based on the above, The theory of Managerial capitalism states that the primary obligation of business leaders is to serve the interests of stockholders by maximizing profits.
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Managerial capitalism theory states that the primary obligation of business leaders is to serve the interests of stockholders by maximizing profits.
Managerial Capitalism introduces a new way of understanding the changing structure of the economy through the emergence and behavior of a new class that is, managers.
In the past years, managers tended to form compromises with workers. However, under neoliberalism, allegiances have shifted.
This therefore draws us to an understanding that, the theory of managerial capitalism states that the primary obligation of business leaders is to serve the interests of stockholders by maximizing profits.
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Assume+you+sold+short+100+shares+of+common+stock+at+$70+per+share.+the+initial+margin+is+50%.+what+would+be+the+maintenance+margin+if+a+margin+call+is+made+at+a+stock+price+of+$85?
Assume you sell short 100 shares of common stock at $45 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $40 per share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction.
[tex]22.22%[/tex]
Profit on stock =[tex]($45 - $40) × 100 = $500[/tex]
$500/$2,250 (initial investment) =[tex]22.22%.[/tex]
**Initial Investment: [tex]$45 x 100 x .50 = 2250[/tex]
The term "stock" (also known as "capital stock") in finance refers to the shares into which ownership of a company or corporation is divided. (Especially in American English, the word "stocks" is also used to refer to shares.) One share of the stock represents fractional ownership of the corporation in relation to the total number of shares. This typically confers the shareholder (stockholder) with the right to a certain percentage of the company's earnings, proceeds from the sale of company assets (after all senior claims, such as secured and unsecured debt, have been satisfied), or voting rights, with these rights frequently being distributed in accordance with the amount of money that each stockholder has invested.
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The calendar that is used for secular purposes in the industrial world today is the?
The calendar that is used for secular purposes in the industrial world today is the Gregorian calendar.
A calendar is a gadget of organizing days. this is carried out by using giving names to periods of time, usually days, weeks, months and years. A date is the designation of a single, precise day within this type of system. A calendar is likewise a bodily document of any such device.
A calendar is a chart or tool which shows the date and the day of the week, and frequently the entire of a particular year divided up into months, weeks, and days. there has been a calendar at the wall above, with huge squares around the dates.
A calendar is handy for regulating civil existence and spiritual observances and for historical and scientific purposes.
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Susan, a manager in a local company, became romantically involved with one of her subordi- nates at work. They sent love messages back and forth by using the company’s Internet con- nection. The company regularly monitored its employee’s on-the-job e-mails and had a policy against such personal involvements. As a con- sequence, Susan was fired. She brought suit for invasion of privacy. Will she win?
Since She brought a law suit for invasion of privacy. I believe that she will not win and as such my response is No. This is due to the fact that she was using company tech for her personal purpose and this is wrong. The company has the full right to monitor what is going on in their network and if what they see is against the company ethics, they have right to do anything that they want.
What is the meaning of invasion of privacy?The term is known to be one that connote a situation where a person fails to honor or respect another person's right to keep some parts or areas of their personal information from being exposed.
This will make a person to feel that the there is an invasion of their privacy.
Therefore, based on the above, Since She brought a law suit for invasion of privacy. I believe that she will not win and as such my response is No. This is due to the fact that she was using company tech for her personal purpose and this is wrong. The company has the full right to monitor what is going on in their network and if what they see is against the company ethics, they have right to do anything that they want.
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Tactical forecasts are typically used to estimate demand for the next __________.
Tactical forecasts are typically used to estimate demand for the next few weeks or months.
Tactical forecasting which aids in supply chain management supports the action of planning for inventory, scheduling production as well as the raw material purchase which will be among other functions. It generally refers to particular forecasts which are up to ahead of 12 months.
On the other hand, Traditional forecasting takes into account consisting univariate information that is extrapolating from the past but it cannot anticipate macroeconomic events including steep increases or declines in the economic activity of a nation which is a variant of tactical forecasting.
In general, this is countered by using a managerial expert type of judgment, which is as well known to suffer from various biases, which are too expensive and are not scalable. This paper actually evaluates multiple approaches to improve tactical sales forecasting which takes place by macroeconomic leading indicators.
Generally, for estimating demands for the next few weeks or months tactical forecasts are used.
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Whole food inc. uses statistical process control to ensure its protein bars have the proper weight. based on an in control process using 3 sigma limits, the control limits were found to be:__________
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What are financial markets, where debt securities with maturities of one year or less are issued and traded, called? secondary markets
Financial markets, where debt securities with maturities of one year or less are issued and traded, are called money markets.
The Financial market is a prepared alternate marketplace in which individuals can lend and borrow short-time period, exquisite debt securities with common maturities of twelve months or less. It allows governments, banks, and different massive establishments to promote short-time period securities to fund their short-time period coins waft needs.
A Financial market is a marketplace wherein human beings alternate economic securities and derivatives at low transaction costs. Some of the securities consist of shares and bonds, uncooked substances, and treasured metals, which might be recognized withinside the economic markets as commodities.
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Contribution margin is ______. all revenues minus all costs sales revenue minus variable costs sales revenue minus cost of goods sold sales revenue minus fixed costs
Contribution margin is sales revenue minus fixed costs
The contribution margin can be expressed in either gross or per-unit terms. After subtracting the variable portion of the company's costs, it represents the additional revenue raised for each product/unit sold.
The contribution margin is calculated by subtracting the selling price per unit from the variable cost per unit. The measure, also referred to as dollar contribution per unit, indicates how a specific product contributes to the total profit of the company.
It shows the percentage of sales that assist to cover the company's fixed costs and provides one manner to show the profit potential of a specific product offered by a company. Profit is defined as any remaining revenue after covering fixed costs.
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Answer: sales revenue minus variable costs
Explanation:
A bond issued on june 1, 20x5, has interest payment dates of april 1 and october 1. the bond interest expense for the year ended december 31, 20x5, is for a period of?
April 1 and October 1 are the due dates for interest payments on a bond issued on June 1, 20x5. The bond interest expense for the fiscal year that concluded on December 31, 20x5, is spread over a six-month period.
From June 1, year 1, to December 31, year 1, or seven months, interest expense would be incurred. Using the period from the bond's issuance date to the year's conclusion, the amount of interest expense for a given year is calculated.
The bondholders do not actually get a full interest payment on October 1; the net amount represents interest accumulated from the purchase date. This is because purchasers would have paid the issuer for any accrued interest at the time of purchase (June 1). As a result, the length of time the bonds are outstanding rather than the interest payment dates determine how much is spent on interest.
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The company whose chief executive officer was indicted for copyright infringement of allegedly stealing technology from d-link, which was one of its own customers, was _________.
The company whose chief executive officer was indicted for copyright infringement of allegedly stealing technology from D-Link, which was one of its own customers, was Interactive Television Technologies, Inc.
ARPANET, in full advanced research initiatives business enterprise network, an experimental computer network that become the forerunner of the net. The advanced research tasks Agency (ARPA), an arm of the U.S. protection department, funded the improvement of the superior studies initiatives employer network (ARPANET) inside the past due 1960s.
Encryption is a way of scrambling records so that best-authorized parties can understand the statistics. In technology terms, it's miles the technique of converting human-readable plaintext to incomprehensible textual content, additionally referred to as ciphertext.
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The redistribution of purchasing power due to unexpected inflation benefits which group of people?
The redistribution of purchasing power due to unexpected inflation benefits students with fixed-rate educational loans.
What is a fixed-rate student loan?An interest rate that won't alter throughout the course of the loan's life, a fixed-rate student loan delivers predictable monthly payments. In contrast, a variable-rate student loan's interest rate may change, rising or falling in comparison to a comparable fixed-rate loan, depending on the state of the market.Due to the state of the financial markets, floating rates can alter. RBI bases its base rate determination on a number of economic variables.Fixed-rate loans, whose costs won't vary, are typically preferred by borrowers who value predictable payments. Because the cost of a variable rate loan will either rise or fall over time, borrowers who anticipate a decline in interest rates are more likely to opt for them.The redistribution of purchasing power due to unexpected inflation benefits students with fixed-rate educational loans.
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Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.
Features such as ease of formation, flexibility, and diversity of management are advantages of the partnership form of business ownership.
What is a partnership ownership?It refers to a formal arrangement by two or more parties to manage and operate a business and share its profits. In other words, it is essentially the arrangement between two or more people to oversee business operations and share its profits and liabilities.
Most time, in most partnership business, all the partners share liabilities and profits equally, while in others, partners may have limited liability. However, there is a "silent partner," in which one party is not involved in the day-to-day operations of the business.
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A firm produces pencils or pens. Three workers can produce a total of 10 pens per hour, four workers produce a total of 14 pens per hour, and 5 workers can produce a total of 16 pens per hour. Likewise, three workers can produce a total of 10 pencils per hour, four workers produce a total of 14 pencils per hour, and five workers can produce a total of 16 pencils per hour. The firm has a total of eight workers. Three workers are producing pens and five workers are producing pencils. What is the marginal cost of increasing the production of pens from 10 pens per hour to 14 pens per hour?.
A firm produces pencils or pens. three people can produce a complete of 10 pens according to an hour, four employees produce a total of 14 pens in keeping with the hour, and 5 workers can produce a total of sixteen pens in keeping with the hour. Likewise, 3 employees can produce a total of 10 pencils consistent with the hour, four employees produce a complete of 14 pencils per hour, and five employees can produce a complete of 16 pencils in keeping with the hour. The firm has a complete of eight people. 3 people are generating pens and 5 workers are producing pencils. what's the marginal fee of increasing the production of pens from 10 pens in step per hour to fourteen pens per hour and a pair of pencils in keeping with the hour?
worker. The time period 'employee' does have a wonderful felony that means. A worker is someone who plays in my opinion any work or service for a quit-person who is not a client or patron, whether beneath a contract of employment or any other contract. It does now not be counted if the settlement is express or implied, verbal or in writing.
A worker is a person who works. This generally way someone who does manual labor, like production items. In economics, there are three factors of production.
Worker kind: A described employee class is assigned to every function in Workday. worker Sub-type: A defined sub-class that falls under the excessive-stage employee type and is assigned to every employee. for instance, a worker can fall beneath a worker employee kind with a Variable employee sub-kind.
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What annual rate of return is earned on a $4,000 investment made in year 2 when it grows to $8,000 by the end of year 8?
A $4,000 investment that increases to $8,000 by the end of year 8 earns an annual rate of return of 18.92%.
The term annual percentage rate (APR) describes the annual rate that is produced by a payment that is owed to investors or levied to borrowers. The annual percentage rate
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
Hence,
$ 8,000 = $ 4,000 * ( 1+r/100) ^ 4
$ 8,000 /$ 4,000= ( 1+r/100) ^ 4
[2 ^ ( 1/4) ] -1 *100 = r
or r =18.92%
Annual rate , is a measure of the real cost of borrowing money over the course of a loan or the income generated by an investment. This includes any fees or other expenditures related to the transaction, but does not account for compounding. Consumers may compare lenders, credit cards, and investment goods using the annual rate , which gives them a concrete number to work with.
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What kind(s) of poor disclosure most concerns financial statement users and preparers?
The requirements for disclosing the alteration, falsification, or manipulation of accounting records or other supporting material used to prepare financial statement should be carefully considered during the preparation of the financial statements.
Financial statements are written records that outline a company's operations as well as its financial success. Government organisations, accounting firms, and other entities frequently audit financial statements to assure their accuracy and for reasons related to taxes, financing, or investment. The balance sheet, income statement, cash flow statement, and statement of changes in equity are the four basic financial statements used by for-profit organisations. Nonprofit organisations employ a comparable but distinct set of financial statements. The cash flow statement (CFS) gauges a company's ability to generate enough cash to cover its debt payments as well as operating costs and investments. The statement of changes in equity documents how profits are transferred to third parties or reinvested in the business for future growth.
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A+property+sold+for+$200,000.+there+was+a+$20,000+down+payment+and+the+rest+was+in+the+form+of+a+30-year+mortgage+at+6%+interest.+the+seller+paid+3+points+at+the+closing.+how+much+was+that?
The net payment for the down payment is $5,400
Points. $200,000 - $20,000 = $180,000. $180,000 X .03 = $5,400.
What is down payment?When a buyer is first considering investing in a pricey good or service, they typically pay a down payment. A loan will frequently be taken out by the buyer to cover the remaining balance after the down payment, which is only a portion of the total purchase price.
In fractional reserve banking systems, a down payment is primarily used to protect the lending institution's capital and to recover some of the loan balance due in the event that the borrower defaults.
In order to qualify for financing, you must pay the seller a down payment.
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A local newspaper ran a survey by asking, do you support the development of a weapon that could kill millions of innocent people?' determine whether the survey question is biased and why
Yes - It makes use of phrases like "innocent" and "millions" to arouse pity and encourage you to oppose the development of such a weapon.
What is Weapon development?
Military technology is a field that necessitates a significant discussion on engineering ethics due to the scale of expenditures, direct or indirect involvement of engineers, and inventive innovations. Some engineers experience moral problems as a result of their involvement in the production of weapons, such as the realisation that their company's production of weapons would be carried out by someone else if they didn't, and that their actions would not affect the outcome.Even if working in a facility that produces harmful chemicals can make you feel bad, the thought of doing rid of this terrible thing after you take over as CEO of the business gives you the impression that you are doing the right thing—even if you don't actually end up doing it.To know more about Local newspaper visit:
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Which two are benefits of equity funding? (Choose two)
1. Loan payments are predictable; they do not change with the fortunes of the business.
2. Can be used to raise working capital.
3. Investors do not get paid if the business does not make a profit.
4. Loan payments can be set up so they match seasonal sales of the business.
5. Investors have no say in the management or direction of the business.
The benefits of equity funding are it can be used to raise working capital.
Investors do not get paid if the business does not make a profit. Option 2 and option 3 are appropriate response.
What is equity funding?
The practice of raising money through the selling of shares is known as equity funding. Companies raise money to pay expenses in the short term or because they have a long-term objective and need money to invest in their expansion.
A firm effectively sells ownership in their business when it sells equity shares in exchange for money. There are two methods of equity funding: the private placement of stock with investors and public stock offerings.
Equity funding is used when companies, have a short-term need for cash. It is used to raise working capital. It carries no repayment obligation, investors are only paid when the business is profitable.
Hence option 2 and option 3 are correct response.
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Each firm is an integral part of creston's __________, which is a system of formal and informal relationships used to supply its wines.
'Each firm is an integral part of Creston's value network, which is a system of formal and informal relationships used to supply its wines.
A value network is termed as a set of connections which is between organizations and individuals interacting with each other so as to benefit the entire group. A value network can allow members to buy as well as sell products and can share information. These networks can be visualized with the help of a simple mapping tool showing nodes or members and connectors or relationships.
In the field of business and commerce, value networks are being taken as an example of an economic ecosystem. Each member tends to relies on one another which makes to foster growth and will increase the value. Value network members can consist of an external members which may be customers or internal members, development teams and researchers. Creston's value network is a system of formal and informal relationships which is used to supply its wines.
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The ordering and transportation cost c for the components used in manufacturing a product is?
The approximate ordering and shipping cost C for components utilized in a manufacturing process is. Where C is expressed in thousands of dollars and x is the order size in hundreds, C(x)=10(1x+xx+3)
The total cost of transportation includes all fees associated with moving workers, finished goods, and raw materials. Making sure all moving components are where they need to be in order for your consumers to receive their goods or services on time costs money. You should now total up all of your transportation-related expenses. Take a look at the costs associated with hiring drivers, buying or leasing vehicles, leasing specific permits, outsourcing jobs, and any other transportation-related operation. To calculate the overall cost of transportation, add all of them together. Travel expenses, which comprise all costs related to business travel such as taxi fares, fuel, parking fees, hotel, meals, tips, cleaning, shipping, and telephone charges, are a subset of transportation expenses.
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The _____ authorizes the federal trade commission to restrict unfair or deceptive acts.
The Wheeler-Lea Amendment grants the Federal Trade Commission the authority to impose restrictions on unfair or misleading practices.
The enforcement of civil (non-criminal) U.S. antitrust law and the promotion of consumer protection are the main responsibilities of the Federal Trade Commission (FTC), an independent body of the U.S. government. The Department of Justice Antitrust Division and the FTC both have authority over federal civil antitrust enforcement. In Washington, DC, the Federal Trade Commission Building houses the agency's headquarters.
In reaction to the issue of monopolistic trust that arose in the 19th century, the Federal Trade Commission Act of 1914, which formed the FTC, was passed. Since its founding, the FTC has been responsible for enforcing both the provisions of the FTC Act (15 U.S.C. 41 et seq.) and the Clayton Act, a significant antitrust act.
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If the market equilibrium is at price = $2/lb, and the government imposes a price of $1.50/lb, we will have a:__________
If the market equilibrium is at price = $2/lb, and the government imposes a price of $1.50/lb, there will be a shortage of a good .
What is meant by Market Equilibrium ?
Market supply and demand must be balanced in order for prices to remain steady. This is the state of equilibrium. A surplus of goods or services generally leads to lower pricing, which increases demand, whereas a shortfall or undersupply raises prices, which decreases demand.
An equilibrium is reached as a result of the balanced impact of supply and demand.
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A company is using the aws cli and programmatic access of amazon rds resources from its on-premises network. what is a mandatory requirement in this scenario?
Using an AWS access key and a secret key is a mandatory requirement in this scenario.
An access key offers programmatic get entry to in your sources. which means that you ought to shield the get entry to key as cautiously because the AWS account root user signal-in credentials. it's a satisfactory exercise to do the subsequent: Create an IAM consumer, after which outline that consumer's permissions as narrowly as possible.
In an internet browser, an access key or accesskey lets in a laptop consumer without delay bounce to a selected net web page thru the keyboard. They had been added in 1999 and quick accomplished near-normal browser help.
Access keys supply IAM users the potential to hook up with Amazon EC2 instances. Therefore rotating those often (as an example, each ninety days) is one of the key steps in protecting your assets from unauthorized get right of entry to.
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What would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes fall and macaroni and cheese is an inferior good?
The equilibrium price and quantity of macaroni and cheese if consumers' incomes fall and macaroni and cheese are an inferior good, would increase.
A sort of good whose demand decreases as income increases is known as an inferior good. In other words, consumer income and the demand for subpar goods are inversely related.
Anything that a consumer would purchase less of if they had a better level of real income is considered an inferior good, which is the polar opposite of a normal good. They might also be connected to people who are typically from lower socioeconomic classes. In contrast, when earnings drop or the economy weakens, the demand for subpar goods rises.
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If the nominal rate of interest is 2.5 percent and the inflation rate is 7.5 percent, then the actual real rate of interest is equal to:___.
According to the given information, The actual real rate of interest is 1.833%.
What is the Inflation rate?The Inflation rate refers to the rate of goods and services increase over a particular period of time.
The rate of inflation may be calculated by calculating the percentage of base year prices, which can fluctuate depending on the choices made by the economist.
According to the question, the nominal rate of interest is 2.5% and the inflation rate is 7.5 percent.
The real rate of interest can be calculated with the help of the following formulae:-
=(1+i) = (1+r)(1+p)=(1+r) = (1+i)/(1+p)= r = (1+i)/(1+p) - 1
Where,
r = real interest rate
i = nominal interest rate,
and p = inflation rate
r = (1+7.5)/(1+2)−1=3.5/3 −1=1.833
Thus, the real interest rate is 1.833%.
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How is simple interest different from compound interest?
While compound interest is based on the principal and interest that accumulates over time, simple interest is based solely on the principal of a deposit or loan.
What distinguishes compound interest from simple interest?Simple interest is often a predetermined percentage of the principle amount borrowed or lent paid or received over a specific time period. Borrowers are required to pay interest on interest in addition to principal since compound interest accrues and is added to the accrued interest from prior periods.
What is the complete simple interest formula?The formula for calculating simple interest is SI = P R T, where P stands for principal, R for rate of interest, and T for time period. Here, the rate (r%) is expressed as r/100, where r% is the percentage rate. In the case of simple interest, the principal is the amount of money that does not change over the course of a year.
How is compound interest determined?In order to compute compound interest, multiply the principle of the original loan by the annual interest rate multiplied by the number of compound periods minus one. You will then be left with the principal amount of the loan plus compound interest.
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Cadillac is preparing to build a new assembly plant in the united states. Although it would be slightly cheaper to build cars in michigan, the company decides to place the factory in louisiana, which is closer to the region where the cars are in greater demand. The overall result is faster delivery on average and lower delivery costs. Cadillac is responding to what environmental trend?.
The U.S. population is shifting to the Sunbelt; Lecture page 31. A) One of the geographic demographic trends in the United States has been migration into the Sun Belt. Building a plant in Louisiana, which is in the Sun Belt, would greatly reduce transportation costs, compared to a plant in Michigan. B) The fact that more baby boomers live in the Midwest is irrelevant; the question states that demand is greater in the region close to Louisiana. C) Cultural diversity is not a factor in Cadillac's decision. They are basing their decision on where the demand is greater. D) Just-In-Time inventory is not an environmental trend. It is an inventory delivery process that can be controlled by the company. E) While this is an environmental trend, it has nothing to do with where Cadillac decides to build its new plant.
Environmental geography is the study of how human beings engage with the bodily environment and what effect each has on the alternative. This look can be described as a combination of human and physical geography, with an emphasis on the connection between those branches of geography.
Environmental geography gives you the gear to develop sustainable answers to environmental issues. For an instance, you will learn about the effect of weather trade on biodiversity, the effect of people on environmental sources, and plenty more.
Geo-ecosystem or honestly atmosphere as examine the unit. The functioning of environments such as flow of strength and depend and environment productivity. Temporal adjustments in atmosphere Spatial ecological modifications international environmental hassle. Environmental dangers failures.
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Edmond, the ceo of hartman manufacturing, said to his new vice president of accounting, "in the past i had resistance to new ideas by employees who felt that our plans threatened their influence or their jobs. So when you tell your collections department that we just hired a collection agency to handle bad debt, you may have to sell your collections manager and his supervisors on using the agency. You also have to emphasize the fact that nobody is going to be laid off. " selling middle and supervisory managers on changes to overcome their resistance is often a necessary part of.
Selling middle and supervisory managers on changes to overcome their resistance is often a necessary part of strategy implementation.
Strategy implementation is the process of turning plans into action to achieve a desired outcome. Essentially, it is the art of getting stuff done. The success of each organization rests employees on its capacity to implement decisions and execute key processes efficiently, effectively, and consistently.
Strategic implementation may be a plan for implementation of a particular objective: as an example, if I've got a chunk of software that I would like installed in three months.” One scenario can be if you would like to integrate CRM software into your organization, you'll have to spot the steps required to execute the mixing.
Strategy implementation is very important because it involves taking action rather than simply brainstorming employees ideas. A strategic implementation plan (SIP) is the document that you just use to define your implementation strategy. All components must be in situ so as to maneuver from creating the decision to activating the plan.
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Tyrrell's small lumber company aims to fulfill the economic foundation of business. what first step must his company take to achieve this goal?
Tyrrell's small lumber company goals to fulfill the economic foundation of business. Earn profits would be his company first step taken to achieve this goal.
Why is economic development important?
Economic development could be define as a critical component that drives economic growth of an economy, making new job opportunities and facilitating an improved and enhanced quality of life that has improved access to opportunities created by economic growth for existing and future residents.
What is the foundation of economic development?
Trust creating are often achieved through actionable steps like enhancing procedures and processes, aligning goals and objectives through facilitated planning, and structuring transparent communication channels. Restoring relationships is the primary step toward rebuilding our economies.
What is the impact of economic development?
Economic development leads to higher levels of education, greater employment opportunities, and much better income levels. Communities are strengthened with economic development as increasing lots of jobs end in higher income levels.
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If the price of a good's complement rises, _____ for the good whose price did not change will decrease.
If the worth of a good's complement rises, Demand for the great whose price did not change will decrease.
What is demand explain?
Demand is that the quantity of consumers who are willing and able to buy products at various prices during a given period of time. Demand for any commodity implies the consumers' desire to accumulate the good, the willingness and skill to pay for it.
What is demand in the market?
Market demand is that the specific quantity of a product that consumers can afford and want to buy at the given price of that product or service. Market demand affects businesses and consumers alike by determining production and helping to guide competition within the marketplace.
What is the basic law of demand?
The law of demand may be a fundamental principle of economics that states that at a higher price, consumers will demand a lower quantity of an honest . Demand springs from the law of diminishing marginal utility, the very fact that consumers use economic goods to satisfy their most urgent needs first.
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Assume the appropriate discount rate for the following cash flows is 10.19 percent per year. year cash flow 1 $2,350 2 2,750 3 4,950 4 5,550 what is the present value of the cash flows?
Present value = cash flows*Present value of discounting factor(rate%,time period)
=2350/1.1019+2750/1.1019^2+4950/1.1019^3+5550/1.1019^4
which is equal to
= $11862.03.
Present value, a concept based on the time value of money, is calculated by dividing the future cash flow by one plus the discount rate, where an amount of money today is worth much more than the same amount in the future for a number of periods.
To evaluate future cash flows, we need to determine the appropriate discount rate. The present value indicates whether an amount of money is worth more today than the same amount of money in the future. Present value shows that the money you receive in the future is not worth the money you receive today. In economics and finance present value PV also known as present value is the value of an expected income stream determined at the date of valuation.
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