(Q-2) (A)

Present Value – Present value of income is the measurement

of cash that money which you would like to invested today to earn more money or

particular amount for a set a particular age. With the help of the interest

rate, your requirement total amount and total number of installment. In simple

words present value is like decide how much you would like to invest today if

you want to regular weekly payments of $400 for the next particular 5 years.

Future Value – Future value of your income speaks to the

measurement of cash that will be gathered by making fix assumption over a

particular age, in simple words future values is like calculate the correct of

an assumption account, including investment development, subsequent to making

month to month $1,000 commitments for a long time. The formula for future value

is it will give you an approximation amount on the basis of how much you will expansion

on the base of interest percentage.

(B) Here,

(Q-3)

(A) Total revenue = Total price * total

Quantity

20*5000 = 1,00,000

(B) Accounting Profits = total number of

revenue – total accounting costs

1,00,000

– 25,000 = 75000

(C) Economic Profits = Total number of revenue

– (Total Accounting costs + total opportunity costs)

= 1,00,000 – (25,000 + 60,000)

= 1,00,000 – 85,000

= 15,000

(D) According

to me correct worth replicated by the economic profits therefore economic

profits reflect the best use of her time.