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sweet [91]
2 years ago
13

Suppose you win the lottery and have two options: A. Take $1 million now. B. Take $1.2 million to be paid out as 300,000 now and

then $300,000 a year for 3 years. Which is the better deal? Assume that the interest rate is 10%. Please show your work. (4 point)
Business
1 answer:
laila [671]2 years ago
4 0

Answer:

A. Take $1 million now.

Explanation:

A. If we take $1 million now the present value of the money is $1 million.

B. If we choose to take $1.2 million paid out over 3 years then present value will at 10% will be;

$300,000 + $300,000 / 1.2 + $300,000/ 1.44 + $300,000 / 1.728

$300,000 + $250,000 + $208,000+ $173,611 = $931,944

The present value of option B is less than present value of option A. We should select option A and take $1 million now.

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When the first Pizza Hut opened its doors back in 1958, it offered consumers one style of pizza: its Original Thin Crust Pizza.
slega [8]

Answer:

<u>Monopolist competition</u>.

Explanation:

The market structure of monopolistic competition occurs when there are several companies offering similar products, which even though substitute products cannot be considered perfect substitutes. Monopolistic competition is characterized when in the market there are many sellers competing for a higher market position of some product or sector. This type of monopolistic competition is characterized by free entry to other companies, which makes it increasingly competitive in the pursuit of customer preference.

5 0
2 years ago
You own a stock with an average return of 15 percent and a standard deviation of 15 percent. In any one given year, you have a 6
raketka [301]

Answer:

0%

30%

Explanation:

Given:

Average return = 15%

Standard deviation = 15%

Computation:

On assuming 68% chance,

Lowest point  = Average return - Standard deviation  

Lowest point = 15% - 15%

Lowest point = 0%

Highest point  = Average return - Standard deviation

Highest point = 15% + 15%

 Highest point = 30%

Therefore, on 68%, Lowest point is 0% and highest point is 30%.

3 0
2 years ago
Jefferson is interested in starting his own business. He plans to borrow money from the local bank in order to finance the busin
almond37 [142]
They will require him to submit a business plan and a financial plan. The correct option among all the options that are given in the question is option "d" or the last option. The financial plan needs to be perfect for the loan to be passed and also for the business to be successful. The local bank needs to understand the way the company will make profit and pay back the loan.
4 0
2 years ago
Read 2 more answers
The following costs relate to Salad Box Company for a relevant range of up to 10,000 units annually: Variable Costs: Direct mate
Vadim26 [7]

Answer:

Equations best describes the equation to determine total profit for a sales volume: Total profit  = $10.00X – ($4X + $30,000)

Explanation:

Total variable costs to produce 1 units = Direct materials + Direct labor + Manufacturing Overhead + Selling and administrative = $1.25 + $0.75 + $1.00 + $1.00 = $4 per unit

Fixed Costs = Manufacturing overhead + Selling and Administrative = $20,000 + $10,000 = $30,000

Box sells each unit for $10.00. X is the number of units are sold

Total profit = Sales revenue - (Total variable costs + Fixed Costs) = $10.00X – ($4X + $30,000)

3 0
2 years ago
Steve Corp bought a $600,000 apartment building in June of 2014. Of the purchase price, $104,950 is allocated to the value of th
blsea [12.9K]

Answer:

$18,000

Explanation:

According to the Internal revenue service, the useful life of the rental property would be 27.50 years.

The computation of the maximum amount of depreciation is shown below:

= (Purchase cost of building - allocated value of land - salvage value) ÷ useful life

= ($600,000 - $104,950 - $0) ÷ 27.50 years

= $495,050 ÷ 27.50 years

= $18,000

7 0
2 years ago
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