Mustard's inc. sold the rights to use one of its patented processes that will result in cash receipts of $3,600 at the end of each of the next three years and a lump sum receipt of $5,100 at the end of the fourth year. the total present value of these payments if interest is at 9% is:

Total present value of the payments=$11,263.96

Explanation:

Step 1: Determine the total future value of all the payments

For the next 3 year;

Total future value=3,600×3=$10,800

For the fourth year;

Total future value=$5,100

At the end of 4 years, Mustard's Inc will have a future value of;

5,100+10,800=$15,900

Step 2: Determine the present value of all the payments

Using the formula;

F.V=P.V(1+r)^n

where;

F.V=future value

P.V=present value

r=interest rate

n=number of years

In our case;

F.V=$15,900

P.V=unknown

r=9%=9/100=0.09

n=4 years

replacing;

15,900=P.V(1+0.09)^4

15,900=1.4116 P.V

P.V=15,900/1.4116

P.V=11,263.96

Total present value of the payments=$11,263.96

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.