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Westkost [7]
2 years ago
13

You have $12,500 you want to invest for the next 30 years. You are offered an investment plan that will pay you 7 percent per ye

ar for the next 10 years and 9.5 percent per year for the last 20 years. How much will you have at the end of the 45 years
Business
1 answer:
Alchen [17]2 years ago
4 0

Answer:

Future value= $151,018.51

Explanation:

Future value of money measures how much a present amount of money will be in the future at a given interest rate.

The interest gained on money shows the time value of money. One dollar today is less than one dollar in one year's time

The formula for future value is

Future value = Present value * (1 + rate)^time

As we have two periods in this case (10 years and 20 years)

Future value = Present value * {(1 + rate1)^time1} * {(1 + rate2)^time2}

Future value = 12,500 * {(1 + 0.07)^10} * {(1 + 0.095)^20}

Future value= $151,018.51

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Urban’s, which is currently operating at full capacity, has sales of $47,000, current assets of $5,100, current liabilities of $
Nataly_w [17]

Answer:

AE = Increase in Assets - Increase in Liabilities - Profit × (1- payout ratio)

= [($51,500 + $5,100)×0.03 - ($6,200)×0.03 - ($47,000×1.03×0.05)×(1-0)]

= -$908.50

<em>Here, it can be clearly denoted that the firm does not need to raise the additional equity .</em>

Explanation:

Given :

Sales = $47,000

Current assets = $5,100

Current liabilities = $6,200

Net fixed assets = $51,500

Profit margin = 5 %

Sales are expected to increase by 3 percent next year

∴

The additional equity financing(AE) can be computed as follow:

AE = Increase in Assets - Increase in Liabilities - Profit × (1- payout ratio)

= [($51,500 + $5,100)×0.03 - ($6,200)×0.03 - ($47,000×1.03×0.05)×(1-0)]

= -$908.50

Here, it can be clearly denoted that the firm does not need to raise the additional equity .

6 0
2 years ago
Chris has been newly appointed as the head of the HR team at Cuffington Corp. In an attempt to establish a more efficient and re
pentagon [3]

Answer:

KSAOs play a significant role in interviews and selection decisions

Explanation:

According to the given situation, Chris has been hired as an HR team at C Corp. and he took the responsibility of developing job descriptions and specialization for the vacancy of engineers.

Here Chris collects relevant data about the KSAO's so that he can choose a specialized engineer for an organization.

So, in the above case,  the relevant answer is KSAOs play a significant role in interviews and selection decisions.

8 0
2 years ago
ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high pric
ArbitrLikvidat [17]

Answer:

C) competition

Explanation:

ACE's new computer is in the introduction stage of the product life cycle. It is a very new and different product and therefore ACE can charge a high price until the growth stage begins. During the growth stage, the product's demand will increase and it will become a normal available product, that will attract several competitors into the market. Competitors might introduce newer versions of the product which are slightly different, but specially the price will be a decisive factor. As more competitors enter the market, the price will fall.

6 0
2 years ago
Many manufacturers have quality control programs that include inspection of incoming materials for defects. Suppose a computer m
zimovet [89]

Answer:

Explanation:

There are total 5 batches and two boards are selected from each batch for inspection.

Let the boards are numbered from 1 to 5.

If the selected boards are 1 and 2, then it is represented in pair as (1, 2).

If the selected boards are 1 and 3, then it is represented in pair as (1, 3).

Similarly, other pairs can be obtained.

a) Let X be the number of defective boards observed among the two inspected.

If the boards 1 and 2 are the only defective boards in a lot of five, then

(1,2),x=2; (1,3),x=1; (1,4),x=1; (1,5),x=1;

(2,3),x=1; (2,4),x=1; (2,5),x=1;

(3,4),x=0;\ (3,5),x=0;\ (4,5),x=0.(3,4),x=0; (3,5),x=0; (4,5),x=0.

P(X=0)=  3/10 =0.3

P(X=1)={6 \over 10}=0.6P(X=1)=  6/10 =0.6

P(X=2)={1 \over 10}=0.1P(X=2)=  1/10 =0.1

b)

x                  0               1                    2

p(x)            0.3           0.6                0.1

​

​μ  X  =0⋅0.3+1⋅0.6+2⋅0.1=0.8

σ  X ² =(0−0.8)²  ⋅0.3+(1−0.8)²  ⋅0.6+(2−0.8)² ⋅0.1=0.36

μₓ=0.8, σX  =0.6

 

​

5 0
2 years ago
The Clipper Corporation had net operating income of $380,000 and average operating assets of $2,000,000. The corporation require
elixir [45]

Answer:

Company's return on investment (ROI) = Net operating income / Average operating assets

Company's return on investment (ROI) = 380000/2000000

Company's return on investment (ROI) = 19%

Residual income =  Net operating income - Return on investment*Average operating assets

Residual income = 380000 - 18%*2000000

Residual income = $20,000

ROI of new investment = Net operating income/Investment  

ROI of new investment = 12950/70000

ROI of new investment = 18.50%

ROI of overall company if investment taken place = Total net operating income/ Total average operating assets

ROI of overall company if investment taken place = (380000+12950) / (2000000+70000)

ROI of overall company if investment taken place = 18.98%.

8 0
2 years ago
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