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Nutka1998 [239]
1 year ago
8

Maria, age 28, wants to pay no more than $300 a year in life insurance. What is the face value of the largest 20-year term polic

y she can buy without spending more than $300 annually? a. $234,000 b. $158,000 c. $11,000 d. $567,000 Please select the best answer from the choices provided A B C D
Business
1 answer:
VMariaS [17]1 year ago
7 0

Answer:

Explanation:

Net Cost of Life Insurance Premium : Life insurance policy entails Premium to be paid by the insured at a monthly / quarterly interval. insured often gets dividend from the insurance company and in that case, the net cost of premium will be low

The 20 years premium can be calculated with Annual Premium which is not given in the question, therefore i will solve for all the option but please pick the answer that the Annual premium is with you

a)   20 years premium = Annual Premium x Number of years

                                     = 11700 x 20

                                    = 234,000

b)   20 years premium = Annual Premium x Number of years

                                     = 7900 x 20

                                    = 158,000

c)  20 years premium = Annual Premium x Number of years

                                     = 550 x 20

                                    = 11,000

d)  20 years premium = Annual Premium x Number of years

                                     = 28350 x 20

                                    = 567,000

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Given a stock index with a value of $1,200, an anticipated dividend of $45, and a risk-free rate of 6%, what should be the value
kramer

Answer: $1,227

Explanation:

The value of the futures contract should be calculated by the formula;

= Stock Index Value * ( 1 + risk free rate ) - dividends

= 1,200 * ( 1 + 0.06) - 45

= $1,227

8 0
2 years ago
A heat integration project results in saving 5 MM Btu/h of heating utility and 14 MM Btu/h of cooling utility. The prices of hea
guapka [62]

Answer:

9.24 yr

Explanation:

The payback period refers to the amount of time it takes to recover the cost of an investment. In order to find a payback period we need to go through some calculations first  

Annual savings =  5 MM Btu/hr x 8,000 hr/yr x $4/MM Btu x 14 MM Btu/hr x  8,000 hr/yr x $7/MMBtu

Annual savings = $0.944 MM/yr

TCI = \frac{4.0 MM}{0.85}

TCI = $4.7 MM

Depreciation - Annualized fixed cost = \frac{[4.0 - 0] }{10}

Depreciation - Annualized fixed cost = $0.4 MM/yr

Total cost annualized = Annualized fixed cost + Annual operating cost

Total cost annualized = 0.4 + 0.5

Total cost annualized= 0.9 MM/yr

Annual net (after-tax) profit = Annual income - Total cost annualized x (1-Tax rate + Depreciation

Annual net (after-tax) profit = $0.944 MM/yr - $0.9 MM/yr x  1 -0.25 + $0.4 MM/yr

Annual net (after-tax) profit = 0.433MM/yr

Payback period = \frac{4.0}{0.433MM/yr}

Payback period = 9.24 yr

5 0
1 year ago
Polk Products is considering an investment project with the following cash flows:
Andrei [34K]

Answer:

b. 1.86 years

Explanation:

The computation of the project's discounted payback is shown below:-

Year   Cash Flows      Discounted CFs (at 10%)        Cumulative

 

                                                                                Discounted CFs

0        -$100,000           -$100,000                          -$100,000

1          $40,000              $36,363.64                       -$63,636.36

2          $90,000              $74,380.17                        $10,743.80

3          $30,000               $22,539.44                      $33,283.25

4          $60,000               $40,980.81                      $74,264.05

Discounted Payback Period = Years before full recovery +

(Uncovered Cost at start of the year ÷ Cash Flow during the year)

Now we will put the values into the formula

= 1 + ($63,636.36 ÷ $74,380.17)

= 1 + 0.86

= 1.86 years

6 0
2 years ago
Tom is responsible for ordering hardware for a custom home his company is building. The contractor installing the hardware is sc
ICE Princess25 [194]

Answer:

Free slack.

Explanation:

In project management, free slack refers to the amount of time that a certain task can be delayed and not affect the completion time of the general project. Slack time can be considered "just in case" time, because even though delays should be minimized, rarely you can eliminate them completely, and slack time gives you a little extra room for managing projects.

In this case, the free slack time is 10 days, and this delay will consume 9 of them.

3 0
2 years ago
Tee Time Golf Resort plans to use famous Kauri wood from New Zealand for parts of the interior of the magnificent clubhouse at i
Tju [1.3M]

Answer:

correct option is C. it's a good time to buy the wood.

Explanation:

given data

slab = 10 feet

cost Tee Time =  $5,000

$500 US dollars = $738 NZ dollars

solution

If they import timber from New Zealand. Tea Golf Resort pays less than $ 5000 to import Wood from New Zealand at the current exchange rate. This is a good time for them to import forests

we get here current exchange rate of 1 dollar that is as

US $500 = NZ $738

so $1 = \frac{738}{500}  

$1 = NZ  $1.476

current exchange rate is $1 = NZ $1.476

so

10 foot slab costs $5000

so Tee Golf Resort will pay is

Tee Golf Resort pay = \frac{5000}{1.476}  

Tee Golf Resort pay = $3387.53

so correct option is C. it's a good time to buy the wood.

3 0
1 year ago
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