Answer:
Multisegment approach
Explanation:
Multi segment approach refers to a marketing strategy where a firm provides distinct offerings to different segments of it's target market. Every of the market segment is treated differently with regards to it's offerings and benefits to each market segment.
An attractive industry is one that is characterized by high entry barriers, suppliers and buyers with strong bargaining power, low threats from substitute products, and low rivalry among firms.?
Explanation:
An attractive industry should be characterized by
high entry barrierssuppliers and buyers with less bargaining power low threats from substitute productslow rivalry among firmsOnly the above listed characteristics can provide the best profit and make the industry attractive.
If the suppliers and buyers have strong bargaining power, then the industry will have only very less profit, since the bargaining power is more. Even if either a buyer or a supplier is strong enough to bargain it will lead to less profit only or in simple terms a loss to the industry.Test marketing _____.
A. identifies two or more segments within the market for a particular company's products.
B. provides information for decisions on product improvements and new-product introductions.
C. includes choosing and evaluating locations, channels, and distribution partners.
D. focuses on database development through optical scanning at the point of purchase.
E. involves understanding how one's target consumers behave as shoppers, in different channels and formats, and leveraging this intelligence to the benefit of all stakeholders.
Answer:
B. provides information for decisions on product improvements and new-product introductions is the correct answer.
Explanation:
Test marketing is used in businesses to test and to provide infotrmation about the viability of the new product and the marketing campaign.
Before the launching of the new product in the market test marketing is done.
The test marketing proposes is to collect sufficient information regarding the product, price, parts of the marketing mix, distribution channels and media spend.
The advantage of test marketing is it minimizes the risk of product failure and it can produce a promotional buzzing that promotes the product launch.
International experience is valuable for mid-career individuals who aspire to higher positions and greater responsibility, but not for students seeking their first job beyond university.
a. true
b. false
Answer:
FALSE
Explanation:
In a way unlike ever before, international experience brings you closer to other cultures, thoughts, ideals, beliefs and religions. This creates opportunities for tension, development and growth and for a global community that is more collaborative.
Building a successful experience in international work requires adjusting to various languages and traditions. The ability to work throughout cultures will become incredibly important as many companies and organisations are opening up to international markets and working to address global issues.
Thus, from the above we can conclude that the given statement is false.
Choose the correct statement(s) below regarding A. the direct write-off method for calculating bad debt expense. B. It is not normally consistent with GAAP and accrual accounting. C. Its use tends to result in an overstatement of accounts receivable on the balance sheet. D. Under this method, bad debt expense is recognized when a specific account is determined to be uncollectible.
Answer: The correct answer is "B, C, and D".
Explanation: All of these are corrects statements regarding the direct write-off method for calculating bad debt expense.
This method is generally not consistent with GAAP and accrual accounting.Using this method generally causes an over estimate of accounts receivable in the company's balance sheet.One of the peculiarities of this method is that it only recognizes the expense for bad debts when a specific account is determined uncollectible.In a SWOT Analysis, the primary objective of managers participating in this exercise is to:a. identify strategies that exploit external opportunities, counter threats, build on strengths, and eradicate weaknesses. b. utilize a consultant group to gain an outside perspective on how the company's strategies can be improved. c. impress the CEO and other leaders in the organization with their knowledge and strategic decision making. d. define at least two future states of the company and build strategies that address those specific scenarios.
Answer:
a. identify strategies that exploit external opportunities, counter threats, build on strengths, and eradicate weaknesses.
Explanation:
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats.
It is used to assess an organization's competitive strength and to devise strategies accordingly.
Strengths relate to an organization's specialization which provides a competitive edge to it.
Weaknesses refer to shortcomings or limitations of an organization. Weaknesses could be inherent.
Opportunities refer to favorable situations available at the disposal of the organization which it must seize immediately.
Threats relate to dangers arising out of changes in the business environment.
The aim of SWOT analysis activity is to come up with those strategies which make the most out of available opportunities, overcome threats, further build up strengths and eliminate weaknesses.
The correct option is: a) identify strategies that exploit external opportunities, counter threats, build on strengths, and eradicate weaknesses. The primary objective of managers conducting a SWOT Analysis is to identify strategies that utilize the company's internal strengths and weaknesses while responding to external opportunities and threats to enhance performance and ensure future success.
The primary objective of managers participating in a SWOT Analysis is to identify strategies that exploit external opportunities, counter threats, build on strengths, and eradicate weaknesses. This is because the components of SWOT—strengths, weaknesses, opportunities, and threats—are essential for understanding both the internal and external factors that can impact a company's performance. Strengths and weaknesses are internal factors within the organization's control, such as resources and capabilities, whereas opportunities and threats are external factors beyond the company's control that arise from the market or environment. In practical application, when a manager utilizes a SWOT Analysis, they often focus on a specific aspect that is deemed most critical for the company's success. For instance, if a company like Hewden is facing significant external economic threats, a manager might prioritize those threats in the analysis and develop strategies to mitigate them indirectly, for example, by cutting costs or leveraging brand strength. The goal is not just to impress leadership with knowledge but to create actionable insights that could secure the firm's future. In the context of coursework, students need to first comprehend and then apply SWOT analysis on a specific company, like Company X, in order to make persuasive arguments about the priorities the company should focus on.
You are working to improve the quality score of a Google Search ad by increasing your eCTR. Your goal is to have more users click on the ad and ultimately visit your website. What might increase the number of clicks your ad receives?
1. Decreasing the bid for the ad.
2. Adding more specifics to the ad.
3. Tweaking the speed of your website.
4. Cloning the ad multiple times.
Answer:
Adding more specifics to the ad.
Explanation:
You are working to improve the quality score of a Google Search ad by increasing your eCTR. Your goal is to have more users click on the ad and ultimately visit your website. Adding more specifics to the ad will increase the number of clicks your ad receives
Answer:
I think it’s B adding more specific to the ad.
Explanation:
Adding more specifics to the ad will increase the number of clicks your ad receive.
Why is the yield on 30-year Treasury bonds important? a. It indicates how much the Treasury has borrowed b. It indicates whether the US government has a balanced budget c. It represents the base-level cost of capital in the US d. It reflects Federal Reserve fiscal policy e. It is the fear index for the US markets
Answer:
c. It represents the base-level cost of capital in the US
Explanation:
Cost of capital is the minimum return that is needed to carry out capital projects such as building homes, road construction. It is the return that will make government projects viable.
So the United States government depend on the Treasury bonds 30 year yield to fund spending on various capital projects.
Amazon, the largest online retailer, has experimented with physical stores and recently bought Whole Foods. Whole Foods has almost 500 stores and gives Amazon facilities for rapid physical expansion. The general insight here is that
Answer:
to survive today, organizations need to be present in both the online and physical markets
Explanation:
So far Amazon has dominated the online space when it comes to buying products and services. But the scenario in the question makes it clear that having only one channel open to customers (online) is not sufficient.
It is necessary to diversify by having physical stores in addition to online stores.
Some consumers for example will want to examine what they are buying before paying, others will not have the patience to wait for delivery of goods. So the physical store will serve these segments of customer's.
Final answer:
Amazon's move into physical retail through the acquisition of Whole Foods and the opening of physical stores represents a blend of online and direct customer interaction, leveraging economies of scale for expanded growth.
Explanation:
The general insight regarding Amazon's acquisition of Whole Foods and their expansion into physical retail stores demonstrates a strategic move of blending online dominance with brick-and-mortar presence. While Amazon had traditionally been an online retailer, holding inventory in computerized warehouses, it is now leveraging Whole Foods' nearly 500 stores for rapid physical expansion, thereby gaining the benefits of direct customer interaction and potentially faster delivery options.
By moving into physical spaces in various states including California, Oregon, and Washington, with future plans for Illinois, Massachusetts, New Jersey, and New York, Amazon showcases the economies of scale it can harness. These economies are possible through its highly automated warehouses located in low-rent areas that contribute to lower average costs per sale, highlighting Amazon's continuous exploration of growth opportunities by diversifying its sales approach.
Jennifer is a salesperson for a business insurance company. Recently she told several of her customers about new legislation that may adversely affect their businesses. Jennifer is earning trust because her customers will perceive her as ____.
a. Likeable
b. Candid
c. Dependable
d. Customer-Oriented
e. Concerned
Answer: Customer oriented.
Explanation:
The customers would see Jennifer as a customer oriented salesperson, who has the best motives for her customers. A customer oriented salesperson is very interested in making sure their customers succeed in achieving their goals.
Carlota has opened a small business. She is selling a bottled hot sauce made from locally grown peppers using a formula passed down in her family. The product is sold via eBay and Amazon and is delivered by FedEx. So far, no promotion other than word-of-mouth on social media has been needed. For only $9.95, you can buy a quart bottle. The preceding describes the _________ for Samantha’s company.a. Marketing mix
b. Perfect strategy
c. Organizational strategy
d. Strategic objective
e. Strategic tactic
Answer:
a. Marketing mix
Explanation:
Marketing mix describes the place, promotion, price, and product that is unique to a particular business. Each of these is selected in such a way that iteets the business goals and objectives.
For Carlota's business the product is bottled hot sauce, the place the product is sold is via eBay, the price is $9.95, and promotion is by word of mouth.
Answer:
A) Marketing mix
Explanation:
Carlota or Samantha are following a very short marketing mix strategy, she is basically focusing on the product (hot sauce + family recipe + locally grown peppers), the place (Ebay and Amazon + FedEx), and the price 8(she probably just decided to sell it at $9.95).
But she is lacking promotion or real marketing efforts like advertisement, publicity, sales promotions, etc. Word of mouth is probably the most effective tool in marketing, but it is also a very limited tool. The advantage of online sales is that you don't need a huge office with tens of people working besides you, you only need google ads for online advertising.
In the year, 2005 Janice Quinn sells a five-year-old car to Used Car, Inc. for $3,000. In the same year, Used Car, Inc. resells the car to Ima Goner for $3,500. What is the contribution of this transaction to GDP in the year 2005?
A. $0
B. $500
C. $3,000
D. $6,500
Tara is using Search Audiences to reach her most valuable customers. Which direct benefit might she obtain by using Search Audience?
A. Receiving automatically-generated keyword and ad content suggestions
B. Delivering a customized message to the right user at the correct bid
C. Learning granular insights regarding her search network performance
D. Getting suggestions on the best automated bid strategies for her campaigns
Answer:
option B
Explanation:
Whenever a customer examines online sites and content, signals are produced that can be captured and understood while preserving the identity of the user. These regular web-wide experiences, including searching, reading material, watching videos, and engaging with social media, help one understand and categories audiences.
Our Audience Solutions will bring your content to the right people at the moments that matter, taking into account details such as age and gender or specific passions and interests. And we can offer these targeted advertisements across networks — search, display, web, and video — to your audience.
Thus from the above we can conclude that the correct option is B .
What is the best way to promote fusion between two related populations of mosquitofish, one of which lives in a predator-rich pond, and the other of which lives in a predator-poor pond?
Final answer:
To promote fusion between mosquitofish populations from different ponds, interbreeding can be facilitated by creating shared habitats or increasing connectivity, allowing gene exchange and selection of advantageous traits. Pollution-related color recognition issues and selective fishing may also affect the genetic makeup and fusion of populations.
Explanation:
The best way to promote fusion between the two related populations of mosquitofish from predator-rich and predator-poor ponds is to encourage interbreeding that would lead to the sharing of genetic material and traits beneficial for survival in both environments. Selective pressures such as predation, competition for resources, and environmental factors would naturally select traits that are advantageous for both populations. To initiate this process, researchers could artificially create shared habitats or increase the connectivity between the separate environments, thus enabling the dispersal of mosquitofish from both populations.
In the example of sympatric speciation, if the females are unable to identify males of their own species due to pollution in the lake which makes it hard to distinguish colors, interbreeding may occur, leading to gene flow between the two species. This phenomenon could eventually lead to the fusion of the populations. The introduction of new predators or selective fishing practices, as seen with the example of colorful fish being selected by fishermen, could also alter the genetic makeup of the populations, potentially breaking down reproductive barriers and leading to fusion.
6. Calculating a country's population growth rate takes into account all of the
following except
A the number of births in a given year
B the number of people who marry in a given year
OC the number of people who move to a country in a given year
D the number of deaths in a given year
Answer:
The answer is B. the number of people who marry in a given year
Explanation:
Population growth rate is an important indicator that is required when it comes to long term political and economic strategies of a nation. These could be in areas such as employment, elections and taxation.
Total births, deaths and the migration and immigration are considered when calculating this amount yet the number of marriages in a country has no effect on this.
Which of the following BEST embodies the qualities of a scientific theory?
1. Squirrels in central Illinois prefer to build their nests in oak trees instead of hickory trees.
2. All gases, liquids, and solids consist of atoms.
3. Prairies that have larges herds of bison show greater plant diversity than prairies without bison.
4. Dangerous wildfires in California could be avoided by better fire prevention strategies.
5. Students who study for their environmental science exams will perform better on those exams than those who do not.
Answer and Explanation:
3. Prairies that have larges herds of bison show greater plant diversity than prairies without bison.
Final answer:
The best example of a scientific theory from the choices given is the statement that all gases, liquids, and solids consist of atoms, as it is falsifiable, logically consistent, predictively powerful, and offers a superior explanation compared to alternatives.
Explanation:
The statement that BEST embodies the qualities of a scientific theory among the provided options is number 2: All gases, liquids, and solids consist of atoms. This statement is a fundamental component of the atomic theory, which is a well-established scientific theory describing the nature of matter. It illustrates several key characteristics that a theory must possess to be scientific.
A scientific theory must be falsifiable—it must be possible to conceive an observation or an experiment that could prove it wrong. Additionally, a theory must be logically consistent, provide adequate predictive ability, and offer a better explanation than alternative hypotheses. The statement about matter being composed of atoms fulfills these requirements because it has undergone repeated testing, has consistently agreed with observations, has been used to predict the behavior of various substances, and integrates many hypotheses about matter. Other examples of strong scientific theories include the theory of evolution, the theory of relativity, and the germ theory of disease.
Chris has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned because the commissions she is earning on her sales are lower than she had hoped. Her colleague Pete, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Pete's approach is based on:A. transaction-oriented marketing.B. premium pricing.C. his seniority at the firm.D. special incentives from tour operators.E.value co-creation.
Answer:
Option E
Explanation:
Co-creation of value refers to the business strategy, one that facilitates and supports the active involvement of the consumer in the creation of goods on demand and made to order. Consumers get just what they want with co-creation, and have a hand in making it happen.
Co-creation grants total freedom for customers to operate with assets provided by the company to produce their own significance products. The continued involvement of engaged customers in the manufacturing in their own use as well as exchange value inverts the company's longstanding marketing ideology as the value arbiter.
Heating & cooling installs and services commercial heating and cooling systems. elklandelkland uses job costing to calculate the cost of its jobs. overhead is allocated to each job based on the number of direct labor hours spent on that job. at the beginning of the current year, elklandelkland estimated that its overhead for the coming year would be $ 61 comma 500$61,500. it also anticipated using 4 comma 1004,100 direct labor hours for the year.
Answer:
The predetermined overhead rate is calculated by dividing total estimated overhead costs by total estimated direct labor hours = $61,500 / 4,100 labor hours = $15 per direct labor hourstotal overhead rate for job 102 = 72 direct labor hours x $15 per direct labor hours = $1,080total overhead rate for job 101 = 155 direct labor hours x $15 per direct labor hours = $2,325.XYZ Company was considering moving its operations to a less-developed country. As part of the decision-making process, the executive managers of the company stood in the shoes of the current employees and asked themselves how it might feel to lose their jobs as a result of the proposed action. The executive managers of XYZ Company were demonstrating?
Answer:
Moral imagination.
Explanation:
Moral imagination is an act of exploring the various likely impact of a new decision in order address potential ethical issues.It assists an individual to see beyond a laid down rule and standards and ethical values will not be violated.
It entails being initiative to develop new morally upright ideas , knowledge and actions outside the regular ethical principles.
Every human being posses moral imagination to a certain degree but its has to be developed before it can be of ethical contribution.
Ingente Corp. and Ventruni Corp. will be combining their resources to build the largest railway system in the world. Both companies will equally share costs and profits from this venture. This form of global business is an example of a _____.
Answer:
Strategic Alliance.
Explanation:
Strategic alliances are agreements between two or more independent companies to cooperate in the manufacturing, development, or sale of products and services or other business objectives.
Casper was asked to run a customer survey and analyze its results for his company. After presenting the results to the marketing team, they struck upon a marketing solution to an identified customer problem. Casper and his marketing team have just completed what marketing process?
Answer:
marketing research
Explanation:
Marketing research -
It refers to the method of collecting , interpreting and analyzing the information about the goods and services in the market , is referred to as the marketing research .
All information about the past of the products is considered , the target of the company is also considered along .
The method helps for the prediction of the future of the company .
Hence , from the given scenario of the question ,
The correct term is marketing research .
Casper and his team performed the marketing research process, which started with the preparation and execution of a customer survey. The data collected led to the analysis and identification of a marketing solution for a customer problem, representing the three stages of this process: strategy, solution, and significance.
Explanation:Casper and his marketing team have just completed a process known as Marketing Research. This is an organized effort to gather and interpret information about a customer problem. In this scenario, the initial step was running a customer survey. To further understand the subject, one exemplification can be a marketing manager for an electronics chain store seeking customer data. They collected information from randomly selected customers with questionnaires asking for variables of interest like age.
After data acquisition, the analysis was conducted and presented to the marketing team. Upon analysis, they found a solution to a particular customer problem, thus completing a three-stage process which can be broken down into strategy (formulating a plan to collect data), solution (analyzing the data and coming to a conclusion), and significance (applying the conclusion to solve a problem).
Learn more about Marketing Research here:https://brainly.com/question/30651551
#SPJ3
Consider a production possibilities boundary showing the quantity of military goods and the qumdity of civlian goods on the two axes. A movement along the production possibilities boundary could be caused by A) the employment of previously idle resources. B) the reallocation of resources between military and civilian goods. C) the growth of productive capacity. D) an increase in the labour supply E) technological progress.
Answer:
B) the reallocation of resources between military and civilian goods.
Explanation:
PPC is the graphical representation of product combinations that an economy can produce, given resources & technology.
Given same resources & technology, the two goods are inversely related - one good's quantity can be increased by decreasing the quantity of other good.
PPC is based on the assumption that resources are efficiently utilised & all points on PPC denote product combinations efficiently utilising resources.
So, movement along the PPC boundary means production level intact at full efficiency level & just reallocation of resources between good 1 to good 2, i.e here b/w military & civilian goods.
anufacturers consider selling and administrative costs to be A. prime costs. B. conversion costs. C. inventoriable costs. D. period costs.
Answer:
D. period costs.
Explanation:
The period cost is the cost which is incurred during the passage of time. It includes the major part of the ling and administrative expenses of the income statement. This cost is not capitalized. It is to be allocated based on the expenses that are against the revenue.
Example - Depreciation on delivery trucks, advertising expense, etc
Correctly complete the following sentence. Concurrent engineering is
A. a sequential attempt among functional disciplines to design new products.
B. a cross-functional approach to introduce new products to market.
C. an approach to new product introduction that requires participation of one single functional discipline at a time, thereby reducing new product development costs.
D. an approach to new product development that has resulted in a large number of prototype build and testing iterations.
Answer:
B. a cross-functional approach to introduce new products to market.
Explanation:
Concurrent engineering -
It is a long term business strategy .
In this method the products designed and developed in different steps , is referred to as concurrent engineering .
The method is used to reduce the development time of the product and the marketing time of the product , which in turn increases an improves the productivity as well as decreases the cost .
Hence , the correct option is B.
Final answer:
The correct completion for the sentence on concurrent engineering is B. It signifies a cross-functional approach to rapidly introducing new products to market by having multiple disciplinary teams work together in parallel.
Explanation:
Correctly completing the sentence about concurrent engineering, the answer is B. a cross-functional approach to introduce new products to market. Concurrent engineering involves an integrated approach where different functional disciplines work together in parallel to develop a product. This method contrasts with sequential development, where each department works separately and one after another, often leading to delays and increased time to market.
In the context of the engineering design process, concurrent engineering allows for different stages such as design, analysis, and production to be conducted simultaneously. This collaboration aims to speed up the product development process, reduce costs, and improve product quality by identifying issues early. An effective concurrent engineering process benefits from the use of math and science to support decision-making and optimize resources.
In the 1850s the French franc was valued by both gold and silver, under the official French ratio which equated a gold franc to a silver franc 15½ times as heavy. At the same time, the gold from newly discovered mines in California poured into the market, depressing the value of gold. As a result, A. the franc effectively became a silver currency.B. the franc effectively became a gold currency.C. silver became overvalued under the French official ratio.D. answers a) and c) are correct
Answer:
B) the franc effectively became a gold currency.
Explanation:
Before the price of gold plummeted, the French government could rely on bimetallism, but as the price of gold decreased and the value of silver remained the same, all you needed to do to earn some money was change your gold coins into silver coins (arbitrage). So the French government decided that it couldn't rely on the value of two different metals and chose gold.
Final answer:
The influx of gold in the 1850s decreased its value, making the French franc effectively a silver currency and overvaluing silver under the official ratio; hence, answers A and C are both correct.
Explanation:
In the 1850s, as gold became more abundant and therefore less valuable due to the influx from mines in California, it led to changes in the balance between gold and silver as forms of currency. As gold depreciated, it became more profitable to mint silver coins rather than gold, which led to silver becoming the de facto currency despite both being legal tender. The French franc, which had an official ratio of 1 gold franc to 15.5 times as heavy in silver francs, became predominantly a silver currency because silver maintained its value better than gold did.
Therefore, the correct answer to the question of what happened to the French franc in the 1850s when the value of gold decreased is: A. the franc effectively became a silver currency and C. silver became overvalued under the French official ratio. This indicates that D. answers a) and c) are correct.
John Carter, the CEO of Carter Steels, is concerned about the sudden rise in employee attrition in his organization. He asks Walter, the human resources manager, to provide him with the last quarter's report showing the rate of attrition. Walter, however, sends the salary details of the new hires for the last quarter. This report is of no use to Carter as it is ________.
Answer:
irrelevant
Explanation:
From the word "attrition" which refers to employees attrition in this context refers to the process by which employee leaves a company for their own reasons such as resignation or retirement. So therefore the salary report sent is irrelevant to the reason for employee leaving the company.
Because companies spend more than half their revenue on purchases of goods and services, they should strategically manage key sources of supply to reduce the total cost of materials and services. True or false?
Answer:
True.
Explanation:
Purchasing is an important part of a company and it's operating efficiency determines whether a company would be profitable for not. Let's assume, A company sells their goods (250 Pencils) for $500 but to make those $250 they have procured raw materials worth of $5 dollar for each pencil, now due to various other factors their prices were low or anything else we are not going into that, however, the point to understand is the importance of procurement and it's process.
Procurement with analysis and strategies can help you save money which you wouldn't have because you never though about it. Why? Because procuring process keeps all seasonal factors, all elements included in purchasing,all costs in mind and than let's you know what quantity from which supplier, for how much should be purchased?The activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large___________________________
Answer and Explanation:
marketing
Edgar is a chef and the kitchen manager in an upscale restaurant. He is very knowledgeable in both the culinary and restaurant management fields. Because he possesses these technical skills, Edgar can be considered a(n) ________ worker.A) cognitive
B) focused
C) top-rated
D) MBO
E) knowledge
Answer:
Edgar is a chef and the kitchen manager in an upscale restaurant. He is very knowledgeable in both the culinary and restaurant management fields. Because he possesses these technical skills, Edgar can be considered an Management by objectives (MBO)
Explanation:
Management by Objectives (MBO) has to do with management of organization in terms of their goals and ensure maximum performance is recorded. Edgar used MBO as a result helps the restaurant to harness their resources and manage it efficiently.
What is the present value of a perpetuity that makes annual payments of $10,000 at 4% compounded annually? (round your answer to the nearest dollar)
Answer:
Present Value of Perpetuity is $25,000
Explanation:
Cash flow = $10,000
Interest rate / Yield = 4%
Present Value of Perpetuity = Cash flows / interest Rate or Yield
Present Value of Perpetuity = $10,000 / 4%
Present Value of Perpetuity = $10,000 / 0.04
Present Value of Perpetuity = $25,000
The present value of a perpetuity making annual payments of $10,000 at a 4% interest rate is $250,000.
Explanation:The present value of a perpetuity can be calculated by the formula: Present Value = Payment / Interest Rate. A perpetuity is an endless series of equal payments at regular intervals, and the interest rate is compounded annually. So, in your case, the payment is $10,000 and the interest rate is 0.04 (or 4%).
To calculate the present value, we simply divide the payment by the interest rate. So, we have: Present Value = $10,000 / 0.04. When we perform this calculation, we find the present value of the perpetuity to be $250,000 when rounded to the nearest dollar.
Learn more about Present Value of Perpetuity here:https://brainly.com/question/33751799
#SPJ3
Phosfranc Inc., is expecting the following cash flows starting at the end of the year—$133,245, $152,709, $161,554, and $200,760. If their opportunity cost of capital is 9.4 percent, find the future value of these cash flows. (Round to the nearest dollar.)
Answer:
$734,730.52
Explanation:
We know that
Future value = Present value × (1 + rate)^number of years
So for first year, the future value is
= $133,245 × (1 + 9.4%)^3
= $133,245 × 1.309338584
= $174,462.82
For second year, the future value is
= $152,709 × (1 + 9.4%)^2
= $152,709 × 1.196836
= $182,767.63
For third year, the future value is
= $161,554 × (1 + 9.4%)^1
= $161,554 × 1.094
= $176,740.08
For fourth year, the future value is
= $200,760 × (1 + 9.4%)^0
= $200,760 × 1
= $200,760
Total value is
= $174,462.82 + $182,767.63 + $176,740.08 + $200,760
= $734,730.52
Final answer:
To calculate the future value of Phosfranc Inc.'s cash flows, the future value formula is applied to each cash flow for the respective year and then summed up to find the total, which is rounded to the nearest dollar.
Explanation:
To calculate the future value of the cash flows for Phosfranc Inc., given an opportunity cost of capital of 9.4%, we will use the future value formula for each cash flow individually and then sum them up. The formula to calculate the future value is Future Value = Cash Flow × (1 + interest rate)number of years.
For the first cash flow of $133,245 at the end of year 1: Future Value = $133,245 × [tex](1 + 0.094)^3[/tex]For the second cash flow of $152,709 at the end of year 2: Future Value = $152,709 × [tex](1 + 0.094)^2[/tex]For the third cash flow of $161,554 at the end of year 3: Future Value = $161,554 × [tex](1 + 0.094)^1[/tex]For the fourth cash flow of $200,760 at the end of year 4: Future Value = $200,760 × [tex](1 + 0.094)^0[/tex]After calculating the future value for each cash flow, we add them up to find the total future value, which is rounded to the nearest dollar as required.