Mike Westfield is analyzing ordinary annuity investment by calculating the sum of the present values of its expected cash flows. Assuming an interest rate greater than 0%, which of the following would decrease the present value of the investment? a. Using a lower interest rate. b. The riskiness of the investment's cash flows decreases. c. Reducing the size of the annual payments by half (e. g., reducing the annual payment from $100 to $50) while doubling the number of annual payments (e. g., doubling the number of annual payments from 10 to 20). d. Doubling the size of the annual payments (e. g., doubling the annual payment from $100 to $200) while reducing the number of annual payments by half (e. g., reducing the number of annual payments from 10 to 5). e. None of the above will decrease the present value of the investment.

The local electronics store is offering a promotion "1-year: same as cash," meaning that you can buy a tv now, and wait a year to pay (with no in

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

When cell phones were first entering the market, they were relatively large and reception was undependable. all cell phones were essentially the same. but as the technology developed, many competitors entered, introducing features unique to their phones. today, cell phones are only a small fraction of the size and weight of their predecessors. consumers can buy cell phones with color screens, cameras, internet access, daily planners, or voice activation (and any combination of these features). the history of the cell phone demonstrates what marketing trend?