The price of a 5 5-year annuity-immediate with annual level payments of $ 100 $100 is calculated at an annual effective interest rate of 6 % 6%. Estimate the new price of this annuity if the interest rate drops to 5.7 % 5.7% using the first-order Macaulay approximation.

The company is experiencing an increase in competition, and at the same time they are building more production facilities in southeast asia. in this scenario, the top management team is most likely to multiple choice increase the cost of their products. restructure to reflect a more bureaucratic, stable organization. pull decision-making responsibility from low-level management, taking it on themselves. give lower-level managers the authority to make decisions to benefit the firm. rid themselves of all buffering product.