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AlekseyPX
2 years ago
10

Geraldine was injured in a car accident, and the insurance company has offered her the choice of $25,000 per year for 15 years,

with the first payment being made today, or a lump sum. If a fair return is 7.5%, how large must the lump sum be to leave her as well off financially as with the annuity
Business
1 answer:
erma4kov [3.2K]2 years ago
7 0

Answer:

Explanation:

Present value of annuity due = (1+interest rate)*Annuity[1-(1+interest rate)^ -time period]/rate

=(1+0.075)*25000*[1-(1.075)^-15]/0.075

=$25000*9.489153726  

=$237,228.84

You might be interested in
1) Why is the healthcare industry perceived as being less proactive than other industries in the area of computerized informatio
pishuonlain [190]

Answer:

All the answers to questions are given below:-

Explanation:

Answer1):- Its healthcare sector involves providing quality healthcare services to consumers and patients, invests throughout the production of new tools and innovations that promote medical services and provide opportunities to the community area. It makes computerized information system development to be non-core competency for the healthcare industry. It makes the healthcare industry less proactive in its development, because the quality of healthcare services may not improve. The computerized information system, however, offers transparency, electronic reporting, and data exchange that typically benefits patients or customers rather than service providers. It also makes the industry less competitive but the trend is evolving and it is also being implemented proactively by organizations.

You can shift your view with the following initiatives: -

  • Bypassing a regulation to make computerized information system compulsory for the organizations in the industry within their organization.
  • Establish a centralized information system and make another organization to connect it to the centralized system that the government agencies will monitor with their data.
  • Encouraging the industry to also provide facilities in remote areas that require the computerized information system to process data rapidly.
  • Spreading awareness and convincing organizations about the importance of transparency, ethical behavior, safe and rapid information processing through the information system.

Answer2):- EDI, e-commerce, and e-health definitions are interrelated, as explained below:-

  • Together this electronic information focuses on business transactions.
  • The numerical research can be carried out by means of EDI, e-commerce, and e-health. So that this helps to grasp the analysis of the possibilities.
  • The creation of software can be done which leads the company to save its data and information through EDI, e-commerce, and e-health.
  • Technology and innovation could well impact through to the achievement of EDI, e-commerce, and e-health integration.

Answer3):-  Increased use of computerized health-care protocols is:-

  • Precision and accuracy:-The computer-based protocol is better than human and manual work because it does the work with the necessary accuracy (the right solution) and consistency (the same result every time). This means that the treatments for every patient seeking treatment are the same. The facility will begin work on six sigma levels early.
  • Doing the right thing at right time, every time:- Since devices that are backed up by computers and associated protocol have an attached server, they can produce a lot of customer-related data, thereby helping to have the best solution at all times.
  • No human error:- Computer-based systems can function without human interference hence the human error is not involved. Since this idiosyncratic risk is now minimized the process waste will be reduced and the efficiency will be increased.
  • Continuous control mechanism:- The computer-based protocols can track the patient's progress in a better way and can intimate the caregiver to take appropriate action if and when necessary. This ensures that quality treatment is provided.
  • The lower cost involved:- Initially, computer-based protocols have to be installed and thus have a fixed one-time cost, unlike monthly care costs such as carers' salaries.

Answer4):- It's the public key infrastructure that is a structure used only to create, store, and distribute certificate authority to confirm that a particular biometric system belongs to a specific entity.

Healthcare providers often need medicine and direct information about health. Medical conditions among patients and families are often a cause of pride anxiety. To provide outstanding patient service, medical service professionals must always see their clients as individual beings.

Answer5):- Information systems are important in today's world for any organization. This makes the work quick, unified, and straightforward, allowing efficient execution of the tasks and achieving the goals. Similarly, there are many roles in a health-care organization that require the help of a framework for string information systems.  

Failure to have an IS plan can result in errors or complete implementation failure of an IS network. The IS forum is useless unless properly understood and implemented. Therefore the tasks performed by the healthcare environment information system can only be effectively performed if it has a plan based on it.

Answer6):- Strategic Information System is an information system designed to ensure the seamless flow of information between the different entities of an organization. This offers the other companies a profitable Adventure.

The systems development life cycle (SDLC), is used to model or include a technical and non-technical structure for providing a quality program that meets or exceeds market expectations.

3 0
1 year ago
In Lurnee, it takes 10 resources to produce 1 ton of cocoa and 13.5 resources to produce 1 ton of rice. In South Tyberg, it take
Nostrana [21]

Answer: We have assumed constant returns to scale.

Explanation:

Comparative advantage simply stated that an economy should produce the goods whereby the said economy has a lower opportunity cost than its counterpart.

Based on the analysis in the question, the inaccurate assumption is that we have assumed constant returns to scale. This means that an increase in the inputs such as capital and labour which are used in producction will also cause an identical increase in output. In reality, this isn't always true.

5 0
1 year ago
Scenario 13-3 Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As
Murrr4er [49]

Answer:

c. −$80.

Explanation:

The computation of the economic profit is shown below:

Economic profit = Total revenue - Cost of seeds - Earning foregone

where,

Total sales revenue is $300

Cost of seeds is $130

And, the earning foregone is

= 10 hours × $25

= $250

So, the economic profit is

= $300 - $130 - $250

= -$80

We simply applied the above formula to determine the economic profit

5 0
2 years ago
Black and Decker decides to discontinue producing toasters in lieu of more versatile toaster ovens. In the process of discontinu
Andru [333]

Answer:

The correct answer is Gain or loss on the sale of equipment as part of continuing operations.

Explanation:

If a gross profit on sales is generated in the process of selling an item of property, plant and equipment, but additional expenses are also incurred, the only thing that is recognized in the income statement is the net profit.

Among the accounts of the income statement, only one record is made with the net profit that occurred in the process of the sale of the asset. Although the final effect on the income statement is the same as it had under the old regulatory framework, it can be said that with that single record among the income statements, what is sought is that high gross income and expenses are not shown high, as this could distort the different financial analyzes that will be carried out at the end of the year.

6 0
1 year ago
Peter's Audio has a yield to maturity on its debt of 7.8 percent, a cost of equity of 12.4 percent, and a cost of preferred stoc
nadezda [96]

Answer:

WACC = 9.22%

Explanation:

after tax cost of debt = 7.8% x (1 - 34%) = 5.148%

Re = 12.4%

cost of preferred stock = 8%

total value:

105,000 common stocks x $22 = $2,310,000

25,000 preferred stocks x $45 = $1,125,00

$1,500,000 bonds x 0.98 = $1,470,000

total value = $4,905,000

capital structure:

common stocks = $2,310 / $4,905 = 47.09%

preferred stocks = $1,125,00 / $4,905 = 22.94%

debt = $1,470,00 / $4,905 = 29.97%

WACC = (47.09% x 0.124) + (22.94% x 0.08) + (29.97% x 0.05148) = 9.22%

8 0
2 years ago
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