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Anettt [7]
2 years ago
4

Suppose you just won the state lottery, and you have a choice between receiving $2,550,000 today or a 20-year annuity of $250,00

0, with the first payment coming one year from today. What rate of return is built into the annuity

Business
1 answer:
vlabodo [156]2 years ago
5 0

Answer:

7.50%

Explanation:

The computation of the rate of return is shown below:-

Present\ value = Payment\times \frac{1 - (1 + r)^{-n}}{i}

Where

Number of year = 20

Present value = -$2,550,000

PMT = $250,000

Future value = $0

interest rate = 7.4929%

or

= 7.50%

For more clarification please find the attachment to reach out to the rate of return in which proper formula is to be shown for finding out the rate of return

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A manager wishes to improve the job performance of a group of clerical workers. based on herzberg's theory, ________ would be an
Licemer1 [7]

Answer and Explanation:

From the given case/scenario we can state that the manager would choose offering the employees opportunity for the achievement and also recognition . Two factor theory which is also referred to as the Herzberg's hygiene-motivation theory and the dual factor theory, under this there are few certain factors in a workplace which tends to cause the job satisfaction while on the other hand the separate set of another factors tends to cause dissatisfaction, these factors act independently.

4 0
2 years ago
A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best-performers i
Bogdan [553]

Answer:

A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best-performers in the industry if the company's management team fails to:_______.

5. establish production facilities in all 4 geographic regions, produce and market branded footwear with a 5-star or higher S/Q rating, and achieve global market share leadership in both private-label and branded footwear.

Explanation:

The U.S. market is an important market with global reach and image which a U.S. based company cannot neglect.  So, establishing production facilities in all 4 geographic regions will help the company to achieve higher U.S. market share and enhance its domestic and global image.  

Market branded footwear companies like Nike, Adidas, Jordan, Reebok, etc., are already competing with about 5 others in the global market for footwear.  For a company to belong to their class, it must achieve what they have already achieved, especially 5-star or higher S/Q rating.

The Business Strategy Gaming (BSG) is a rating consumer group that "rates the styling and quality of the footwear of all competitors and assigns a styling-quality or S/Q rating of 0 to 10 stars to each company's branded footwear offerings."  According to medium.com, to improve BSG rating, "it is important for each to aim for at least 20% market share in each and every segment. This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company."

5 0
2 years ago
LO 3.5Macom Manufacturing has total contribution margin of $61,250 and net income of $24,500 for the month of June. Marcus expec
densk [106]

Answer:

2.5 and 25%

Explanation:

Given that,

Total contribution margin = $61,250

Net income = $24,500

Expected increase in sales volume = 10%

Degree of operating leverage:

= Total contribution margin ÷ Net income

= $61,250 ÷ $24,500

= 2.5

Percent change in income for Macom Manufacturing:

= Percentage change in sales × Degree of operating leverage

= 10% × 2.5

= 25%

4 0
2 years ago
How would a user know if a particular ratio demonstrates that a company is doing well or doing poorly? As an example to help exp
Aleks04 [339]

Answer: This can be explained as follows.

Explanation: A particular ratio can demonstrate the position of a company. For evaluating the position and position of a company the analyst should first compare the company with the industry average. The comparison with industry will imply whether company is in a surviving position or not.

Industry average may not give suitable results therefore comparison with core competitors should also be done.

A company having current ratio of 2.67 shows that such company have a sound financial condition as they have more than double of current ratios for paying their current liabilities .

6 0
2 years ago
Tustin Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 68 Manuf
riadik2000 [5.3K]

Answer:

The net operating income under variable costing is $139,000

Explanation:

                                 Tustin Corporation

            Contribution Margin Income Statement for 1st year

                                                                         Amount

Revenue                                                    $680,000

(10,000 * $68)

Less: Variable Expense

Direct Material =                                             $100,000

(10,000 * $10)

Direct Labor=                                               $60,000

(10,000 * $6)

Variable manufacturing overhead                     $40,000

(10,000 * $4)

Variable selling and administrative                   <u>$60,000</u>  

expense (10,000 * $6)

Contribution                                                       $420,000

Less: Fixed Costs

Fixed Manufacturing overhead                       $220,000

Fixed selling and administrative                         $61,000

overhead  

Net Income                                                           $139,000

5 0
2 years ago
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