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1 year ago

What is the pv of an ordinary annuity with 5 payments of $4,700 if the appropriate interest rate is 4.5%?

1 answer:

7 0

The formula is
pv=pmt [(1-(1+r)^(-n))÷r]
PV present value?
PMT payments 4700
R interest rate 0.045
N number of payments 5

PV=4,700×((1−(1+0.045)^(−5))÷(0.045))
pv=20,632.89

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Suppose investors can earn a return of 2% per 6 months on a Treasury note with 6 months remaining until maturity. The face value

N76 [4]

Answer: Selling Price = $9803.92

Explanation:

Given:

Treasury bill will provide 2% return in every 6 months.

Time = 6 months

Rate of return = 2% per 6 months

Selling Price of Treasury bill = $Face Value / (1 + Rate of Return)^{time period}$

Selling Price = $$10,000 / (1 + 0.02)^{1}$

Hence price we would expect a 6-month maturity Treasury bill to sell for is $9803.92

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2 years ago

In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in ca

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Answer:

Accounting Break-Even

Case 1 = $14,350 Case 2 = $8,485.71 Case 3 = $214.375

Cash Break-Even

Case 1 = $11,766.67 Case 2 = $1342.86 Case 3 = $168.75

Explanation:

According to the scenario, computation of the given data are as follow:-

Accounting Break-Even = (Fixed Cost + Depreciation Cost) ÷ (Price Unit -Variable Unit)

Case 1 - ($7,060,000 + $1,550,000) ÷ ($3075 - $2,475)

= $8,610,000 ÷ $600

= $14,350

Case 2 - ( $47,000 + $250,000) ÷ ($96 - $61)

= $297,000 ÷ 35 = $8,485.71

Case 3 - ($2,700 + $730) ÷ ($21 - $5)

= $3,430 ÷ $16 = $214.375

Cash Break Even = Fixed Cost ÷ (Price Unit - Variable Unit)

Case 1 - $7,060,000 ÷ ($3075 - $2,475)

= $7,060,000 ÷ $600

= $11,766.67

Case 2 - $47,000 ÷ ($96 - $61)

= $47,000 ÷ $35 = $1342.86

Case 3 - $2,700 ÷ ($21 - $5)

= $2,700 ÷ $16 = $168.75

6 0

1 year ago

Ned's Natural Foods sells unshelled peanuts by the pound Historically, Ned has observed that daily demand is normally distribute

labwork [276]

Answer:

a) 749

b) 4.073

Explanation:

Given:

Mean = demand = 80 pounds

Standard deviation of demand = 10 pounds

Lead time = 8 days

Standard deviation of lead time = 1 day

a) What ROP would provide a stock out risk of 10 percent during lead time.

To find this re-order point (ROP) quantity, take the formula:

$ROP = d(LT) + z \sqrt{ LT \sigma_d ^2 + LT^2 \sigma_L_T ^2}$

Here, service level = 100%-10% = 90%,

Thus z at 90% = ±1.28

$ROP = 80(8) + 1.28 \sqrt{8* 10^2 + (8)^2*(1)^2}$

$ROP = 640 + 1.28\sqrt{800 + 64}$

= 640 + 1.28* 84.85

= 748.61

≈ 749 units

b) What is the expected number of units (pounds) short per cycle.

Find the number of units shorts per cycle. Take the formula:

$E(n) = E(z) * \sigma d_L_T$

[

Where E(z) = standardized number of shorts = 0.048

$\sigma d_L_T$ = standard deviation of lead time demand = 84.85

Therefore,

E(n) = 0.048 * 84.85

= 4.073

3 0

1 year ago

Engineers at a tire manufacturing company investigated the effect of a new rubber compound on the tire life of a certain brand o

Naya [18.7K]

64,576 miles.

Explanation:

When the companies advertise their new products they want to present the product in the best possible light as possible. This is due to edging out the competition as in many products small details make a huge difference. The same is the case with the tires and their endurance. The longer way a set of tires takes you the better, since they are expensive product so changing them less often is very beneficial.

In this case, the interval for the mean tire life varies by 2,026 from 62,550, both up and down. The minimum will be 60,524 miles, while the maximum a tire can pass is 64,576. The company will of course go for the maximum value to make the product look as attractive and as good as possible to the customers.

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2 years ago

Omicore Softworks, a software development firm, undertook a project that involved developing a bespoke accounting software for a

kupik [55]

Answer:

J-shaped curve

Explanation:

Project life cycle is the cycle or the phase, where the project goes or dealt with the initiation to its closure. In short, it can be defined and modified as per the aspects and the needs or requirements of the company.

J- shaped curve, is the curve which has the life cycle curve, that is convex to the baseline at the finish or end of the life of the project. And the curves runs or move parallel to the y axis.

Under this situation, the scenario of the project is J-shaped curve.

6 0

1 year ago