Consider investing in a technology that reduces your annual costs by $10,000 into perpetuity. If the annualized discount rate is 4%, then what is the present value of the benefits from investing in the technology?

Answers

Answer 1

Answer:

$250,000

Explanation:

A perpetuity is an indefinite cashflows ; meaning they occur forever.

Formula for the present value of perpetuity  is as follows;

Present value of perpetuity = CF / rate

Recurring cashflow = 10,000

discount rate; r = 4% or 0.04 as a decimal

PV of perpetuity = 10,000/0.04

PV of perpetuity = 250,000

Therefore, the present value of the benefits from investing in the technology would be $250,000


Related Questions

The difference between a divine command view and authoritarian view is that the authority figure is different. true or false?

Answers

The difference between a divine command view and authoritarian view is that the authority figure is different-Yes the statement holds true

Explanation:

In a Divine Command of View

we often come across statement like -"I would do what God or the scriptures say is right'

As per this point of view the  right and wrong are determined by a supernatural supreme being, whose will we discern from sacred texts and divinely inspired messengers.

Authoritarian View

An example of Authoritarian view is sentence like " I would follow the advise of an authority"

According to this view  the  right and wrong is decided by the authorities.The power of taking decision rest in the hands of a particular authority.

Downside of this view is that : authorities do not always reflect wisdom and not all authorities agree.

As you can see that the difference between the two view point is the authority figure.So the answer is True

Final answer:

While both Divine Command and Authoritarian views involve an authority, they differ in the nature and origin of this authority. The Divine Command view regards the authority as a divine figure, such as God, making moral or ethical commands. An Authoritarian view sees the authority as a human or group of humans enforcing obedience.

Explanation:

The sentence you provided is partially correct. The Divine Command view and the Authoritarian view do differ based on the figure of authority; however, the nature of the authority also changes. In the Divine Command theory, the authority comes from a divine or supernatural entity, such as God. Moral or ethical rules are set by this divine entity and obedience is considered virtuous.

In an Authoritarian view, the authority is a human or a group of humans with the power or the right to make decisions and enforce obedience. The authority does not necessarily need to be divine or supernatural. Therefore, it is not just a difference in the figure of authority but also the origin and nature of that authority.

Learn more about Divine Command and Authoritarian Views here:

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4. The men of the Woodland tribes were responsible for farming and building their homes.​

Answers

Answer: Native American order contains patriarchal elements; men were involved in all segments of life.

Explanation:

In addition to being involved in leading and organizing their tribes, the Indians performed other tasks. They often did the work of constructing permanent residences but also cultivating fields where different crops were grown. Some crafts were also developed, and significant were the ones where the jewelry was made. The woman was highly respected in Native American society.

Men and women played different roles but generally had equal rights. In some tribes, the chief was a man but was elected by women. Today, about 25% of Native American tribes recognized by the federal government are women-led.

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