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Ne4ueva [31]
2 years ago
13

Sally has a decision to make about what she will do in the next 2 years. she can go to school or go straight into the workforce.

if sally immediately starts working, she will earn $20,000 in both years 1 and 2. if she goes to school in year 1, she must pay $5,000, but she would earn $47,500 in year 2. if the interest rate is 5%, calculate the present value for sally if she goes to school and if she does not. does the investment in school make sense? does it make sense if the interest rate is 6% or 4%?
Business
1 answer:
Ray Of Light [21]2 years ago
3 0
<span>If she starts work now she will earn $40,000 in two years. Borrowing 5000 dollars in year one times a flat 5% interest rate equals a total of 5250 which she would have to repay. Not caclualting for taxes, but based on her gross income, that would leave her with 42, 250 dollars and she would end up ahead by the end of two years. So yes at 4 percent it would also make sense. At 6 percent her payback amount would be 5300 dolloars and she would still end up ahead. But in real life there are taxes and compound interest.</span>
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The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these go
Talja [164]

Answer:

direct material = $2,000

so correct answer is B. $2,000

Explanation:

given data

total cost = $9,000

consists = 600 units

overhead apply = $3,000

overhead rate = 75% of direct labor

solution

we get here Direct Labor that is

Direct Labor = \frac{3000}{0.75}

Direct Labor = $4000

and we apply here Total Cost that is

Total Cost = direct material + overhead  + Direct Labor   ..........1

put here value

$9,000  = direct material + $3,000 + $4,000

solve it we get

direct material = $2,000

so correct answer is B. $2,000

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At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker Kellogg’s was quoted as saying,
larisa86 [58]

Answer:

for interest rates equal to or lower than 200%, the firms will use trigger strategies to support the collusive level of advertising

Explanation:

Using the below expression to determine the range of interest rates could these firms use trigger strategies to support the collusive level of advertising; we have:

\frac{current \ period's \ profit \ of \ the \ cheating \ firm \ - \  firm's \  profit \  in \ each \ period \ under \ collision  }{ firm's \ profit \ in \  each \ period \ under \ collision \ - \ profit \ in  \ each \ subsequent \ period \ of \ cheating \ firm  } \leq \frac{1}{i}

where;

the \ current \ period's \ profit \ of \ the \ cheating \ firm \ = \ 49

firm's \  profit \  in \ each \ period \ under \ collision  = \  9

\ profit \ in  \ each \ subsequent \ period \ of \ cheating \ firm  } = \ 1

Then :

= \frac{49-9}{9-1} \leq \frac{1}{i}

= \frac{40}{8}  \leq \frac{1}{i}

i \leq \frac{8}{40}

i \leq 200%

Thus; for interest rates equal to or lower than 200%, the firms will use trigger strategies to support the collusive level of advertising

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Answer:

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