Loggers, conservation agents, and miners are often outside. What would be good or bad about working outside?

High levels of brand ________, or the extent to which consumers feel they are "in sync" with the fox news brand, and engageme

lawyer [7]

I am definitely sure that correct statement should be completed like this: High levels of brand resonance, or the extent to which consumers feel they are "in sync" with the fox news brand, and engagement in fox news programs often leads to greater recall of the ads fox news runs. Brand resonances is the relationship between consumer and the product. It shows how the consumer can relate to it.

7 0

2 years ago

What is the present value of the future cash flows, if you also could earn $110,000 per year rent on the property? The rent is p

dem82 [27]

Answer:

a. The present value of the sales price is $1.657 million.

b. No. This is because an investment in the property will result in a negative net present value (NPV) of $0.443 million.

c-1. The present value of the future cash flows is $2.122 million.

c-2. Yes. Yes. This is because an investment in the property will result in a positive net present value (NPV) of $0.022 million.

Explanation:

Note: This question is not complete. The complete question is therefore presented before answering the question as follows:

You can buy property today for $2.1 million and sell it in 6 years for $3.1 million. (You earn no rental income on the property.)

a. If the interest rate is 11%, what is the present value of the sales price? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.)

b. Is the property investment attractive to you?

c-1. What is the present value of the future cash flows, if you also could earn $110,000 per year rent on the property? The rent is paid at the end of each year. (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.)

c-2. Is the property investment attractive to you now?

The explanation to the answers is now provided as follows:

a. If the interest rate is 11%, what is the present value of the sales price? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.)

The present value of the sales price can be calculated using the simple present value formula as follows:

PV = FV / (1 + r)^n ……………………….. (1)

Where;

PV = Present value of the sales price = ?

FV = Future value or the sales price in 6 years = $3.1 million

r = interest rate = 11%, or 0.11

n = number of years = 6

Substitute the values into equation (1), we have:

PV = $3.1 / (1 + 0.11)^6

PV = $3.1 / 1.11^6

PV = $3.1 / 1.870414552161

PV = $1.65738659187525 million

Rounding to 3 decimal places, we have:

PV = $1.657 million

Therefore, the present value of the sales price is $1.657 million.

b. Is the property investment attractive to you?

No. This is because an investment in the property will result in a negative net present value (NPV) of $0.443 million.

The negative net present value (NPV) of $0.443 million is determined as follows:

NPV = Present value of the sales price - Acquisition cost = $1.657 million - $2.1 million = -$0.443 million

c-1. What is the present value of the future cash flows, if you also could earn $110,000 per year rent on the property? The rent is paid at the end of each year. (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.)

The present value of the future cash flows can be calculated using the following steps:

Step 1: Calculation of the present value of the $110,000 per year rent

Since the rent is paid at end of each year, this can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PVR = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)

Where;

PVR = Present value of yearly rent = ?

P = Annual rent =$110,000

r = interest rate = 11%, or 0.11

n = number of years = 6

Substitute the values into equation (2) to have:

PVR = $110,000 * ((1 - (1 / (1 + 0.11))^6) / 0.11)

PVR = $110,000 * 4.23053785373826

PVR = $465,359.163911209

Converting to million and rounded to 3 decimal places, we have:

PVR = $0.465 million

Step 2: Calculation of the present value of the future cash flows

Present value of future cash flows = Present value sales price + Present value of annual rent ……. (3)

Where;

Present value sales price = $1.657 million, as already calculate in part a above

Present value of annual rent = PVR = $0.465 million

Substituting the values into equation (3), we have:

Present value of future cash flows = $1.657 million + $0.465 million = $2.122 million

Therefore, the present value of the future cash flows is $2.122 million.

c-2. Is the property investment attractive to you now?

Yes. This is because an investment in the property will result in a positive net present value (NPV) of $0.022 million.

The positive net present value (NPV) of $0.022 million is determined as follows:

NPV = Present value of tof the future cash flows - Acquisition cost = $2.122 million - $2.1 million = 0.0219999999999998 million

Converting to million and rounded to 3 decimal places, we have:

NPV = $0.022 million

6 0

2 years ago

Suppose Maria prefers to buy a bond with a 7% expected return and 2% standard deviation of its expected return, while Jennife

zepelin [54]

Answer: The correct answer is "A.Maria is less risk-averse than Jennifer because Maria is choosing a bond with higher standard deviation.".

Explanation: We can measure the risk according to the standard deviation of its expected return, therefore: Maria is less risk averse because she is willing to take more risk in order to obtain a higher return and Jennifer instead prefers to sacrifice performance in order to be less exposed to risk.

7 0

2 years ago

A company has the following three events in December: 1. December 1 - Pay last month's rent (November), $500. 2. December 15 - P

bearhunter [10]

Answer:

A transformation T: (x, y) (x + 3, y + 1). For the ordered pair (4, 3), enter its preimage point.

(-1, 2)

(1, 2)

(7, 4)

Explanation:

A transformation T: (x, y) (x + 3, y + 1). For the ordered pair (4, 3), enter its preimage point.

(-1, 2)

(1, 2)

(7, 4)

6 0

2 years ago

Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year

SSSSS [86.1K]

Answer:

1. Preparing Contribution Income statement

Sales = 40,000 units X $42.60 = $1,704,000

Less: Variable Costs

Direct Material = $11 X 40,000 = $440,000

Direct Labor = $3 X 40,000 = $120,000

Variable Manufacturing Overhead = $3 X 40,000 = $120,000

Variable Selling Expenses = $4 X 40,000 = $160,000

Total Variable Costs = ($840,000)

Contribution Margin = $864,000

Less: Fixed Costs

Selling & Administrative = $300,000

Manufacturing Overheads = $196,000

Total Fixed Cost = ($496,000)

Net Operating Income = $368,000

2. Now we have net income as per Contribution statement = $368,000 and net income as per Absorption Costing = $404,000

This difference is because of Fixed Manufacturing Overheads

Under Absorption costing Fixed Manufacturing Overheads charged = $196,000 ÷ 49,000 units = $4 per unit X 40,000 units = $160,000 whereas in contribution statement it is charged fully.

Under absorption costing even fixed costs are charged based on the number of units produced, whereas in income statement is it charged completely irrespective of the units produced as that value is fixed and cannot be avoided on per unit basis.

Difference = $404,000 - $368,000 = $36,000

Manufacturing cost for 9,000 units (49,000 - 40,000) = at the rate of $4 = $36,000

In case cost of fixed manufacturing overhead is reduced by $36,000 then profit will be increased to $368,000 + $36,000 = $404,000 same as of absorption costing.

7 0

2 years ago