Answer: $3,338.56.
Explanation:
Given, EAR = 11.4 percent =0.114
Weekly interest rate=
Growth rate of price of flowers = 3.3 % per year
Weekly growth rate=
Star Cost (C)= $6
Time period (t)= 25 years
= 25 x 52 = 1300 weeks
Required formula for growing annuity :
![PV=\dfrac{C}{r-g}[1-(\dfrac{1+g}{1+r})^t]](https://tex.z-dn.net/?f=PV%3D%5Cdfrac%7BC%7D%7Br-g%7D%5B1-%28%5Cdfrac%7B1%2Bg%7D%7B1%2Br%7D%29%5Et%5D)
,
where C = Star cost
r = rate per period
g= growth rate
t = time period
![PV=\dfrac{6}{0.00219-0.00063}[1-(\dfrac{1+0.00063}{1+0.00219})^{1300}]\\\\=\dfrac{6}{0.00156}[1-(0.998443408934)^{1300}]\\\\=(3846.15384615)[1-0.13197471131]\\\\=(3846.15384615)(0.86802528869)\approx\$3338.56](https://tex.z-dn.net/?f=PV%3D%5Cdfrac%7B6%7D%7B0.00219-0.00063%7D%5B1-%28%5Cdfrac%7B1%2B0.00063%7D%7B1%2B0.00219%7D%29%5E%7B1300%7D%5D%5C%5C%5C%5C%3D%5Cdfrac%7B6%7D%7B0.00156%7D%5B1-%280.998443408934%29%5E%7B1300%7D%5D%5C%5C%5C%5C%3D%283846.15384615%29%5B1-0.13197471131%5D%5C%5C%5C%5C%3D%283846.15384615%29%280.86802528869%29%5Capprox%5C%243338.56)
Hence, the present value of this commitment = $3,338.56.
Complete Question:
A sole proprietor with a tentative loss may deduct which of the following for qualified business use of home expenses?
a. depreciation
b. mortgage interest
c. rent
d. Utilities
Answer:
b. mortgage interest
Explanation:
The sole proprietor with a tentative loss may deduct expenses for mortgage interest, mortgage insurance premiums, and real estate taxes under the normal rules. The sole proprietor is not allowed to deduct other expenses that are normally tax-exempt expenses, including depreciation, rent, and utilities. The amount to be deducted for mortgage interest should not exceed the percentage for business use.
Any job that requires you to sell stuff. let's say, as a candy boy, you get trained for a few minutes. then tossed into the sea of people to sell chocolate. your supervisor does not expect you to adapt a robotic tone but instead encourages developing your own charismatic style to help you sell more. if you were to continue with this job you would eventually come up with your own way to captivate an audience and sell as many chocolates as you want.
Answer:
Unitary variable cost= $42
Explanation:
Giving the following information:
Direct Materials $14
Indirect Materials (variable) $4
Direct Labor $8
Indirect Labor (variable) $6
Other Variable Factory Overhead $10
During the period, the company produced and sold 1,000 units.
Under the variable cost method, the product cost is calculated using direct material, direct labor, and variable overhead:
Unitary variable cost= 14 + 8 + (4 + 6 + 10)= $42
This scenario exemplify MARKET CANNIBALIZATION.
Market cannibalization is said to occur in a situation in which a new product created by a company impact a negative influence on the sale performance of the company's existing products. It involves the drastic reduction in the demand and sale of the old product by the new product.
