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Digiron [165]
2 years ago
11

Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $ 398 comma 930 due in 28 y

ears. Toni​ Flanders, the​ company's CEO, is scrambling to discount the liability to the present to assist in valuing the​ firm's stock. If the appropriate discount rate is 7 ​percent, what is the present value of the​ liability?
Business
1 answer:
Sladkaya [172]2 years ago
3 0

Answer:

Present value of Liability is $59,989

Explanation:

Money does not have the same value in future as it has today. The present value calculates the today's value of any that cash flow will be made in future.

Liability = FV = $398,930

Number of years = n = 28 years

Discount rate = r = 7%

Present value = FV / ( 1 + r )^n

Present value = $398,930 / ( 1 + 0.07 )^28

Present value = $398,930 / 6.65

Present value = $59,989.47

You might be interested in
Multi-product branding is:_______.
Elan Coil [88]

Answer:

b. a branding strategy in which a company uses one name for all of its products in a product class.

Explanation:

Multi-product branding is a branding strategy in which a company uses one name for all of its products in a product class.

Multi-product branding is a business strategy widely used by manufacturers, it involves producing and selling multiple products using the same brand name for all.

For instance, Pears may have Pears diapers, clothing lines, lipstick ranges, shoes, body lotions, eye shadow, foundation etc. They are all different products manufactured and all branded as Pears.

The merits and advantages of Multi-product branding is high brand awareness, low promotional and advertising costs, and brand equity return.

8 0
2 years ago
On December 31, 2018, AAA disposed an Equipment (Cost: $50,000, Salvage Value: $10,000, useful life: 4 years), which was purchas
levacccp [35]

Answer:

A Loss of $10,000

Explanation:

To calculate the depreciation using the straight line method.

Depreciation = Cost - Salvage value/ no. of years

   

       $50,000   -   $10,000/ 4 = $10,000

Annual depreciation now is:    $10,000

Net book Value (NBV) for the year of disposal i.e 2018 will be:

Cost - Accumulated Depreciation = NBV

$50,000 - $30,000 = $20,000

NBV is $20,000

but was sold for $10,000 which is a loss of $10,000

3 0
2 years ago
What is business intelligence? 1) Raw facts that describe the characteristics of an event or object. 2) Data converted into a me
Arisa [49]

Answer:

3)

Explanation:

BI is about getting data from different sources and turn it into meaningful business  insights for decision makers.

4 0
2 years ago
There are 713 identical plastic chips numbered 1 through 713 in a box.
melamori03 [73]

Answer:

0.0014

Explanation:

There are 713 chips.

Only one chip is numbered  564.

Finding the probability of picking no. 564 will be

=1/713

=0.0014

6 0
2 years ago
A general motors financial analysts needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his
gladu [14]

Answer:

The real gain is 18.2%

Explanation:

Given

GDP in 2000 = $672 billion

GDP in 2010 = $1,69 billion

Interest rate in 2000 = 6.79%

Interest Rate in 2010 = 3.71%

Deflator in 2000 = 24

Deflator in 2000 = 51

Real gain is calculated as follows;

Division of real GDP gain for both years - 1.

To calculate the real GDP gain in 2000 and 2010.

This is calculated by; Nominal GDP/ deflator

In 2000; real GDP gain = $672b/24

Real GDP gain = $28b

In 2010; real GDP gain = $1690b/51

Real GDP gain = $33.1b

Calculating the real gain

Real gain = Real GDP gain in 2010/Real GDP gain in 2000 - 1

Real Gain = $33.1b/$28b - 1

Real Gain = 1.182 - 1

Real Gain = 0.182

Real Gain = 18.2%

Hence, the real gain is 18.2%

4 0
2 years ago
Read 2 more answers
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