Difference between present value and future value of asset

Assignment Help Operation Management

Reference no: EM132212741

Question 1.

Twin Donuts restaurant introduces a new promotional advertisement “Buy three donuts for $2.50; regularly costs $450.00 and get the four one free. This Ad will end will end September 30, 2018.

Explain what does each of the following situation best represents and then choose your best answer?

Producer-producer rivalry.

Consumer-consumer rivalry.

Producer-consumer rivalry.

Question 2.

What is the difference between Present Value and the future value of an asset?

Offer an example

What is meant by the opportunity cost of an item or activity? Give an example in support of your answers

What is the maximum amount you would pay for an asset that generates an income of $ 1,000 at the end of each of the two years when the opportunity cost of using funds is 5 percent?

Instructions:Show your work and define all steps

Reference no: EM132212741

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