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igor_vitrenko [27]
2 years ago
6

Lucky louie just won the lottery!! he has a choice of taking $1,000,000 in cash or receiving $50,000 per year for 30 years begin

ning at the end of this year. the best way to make this choice is to
Business
2 answers:
kipiarov [429]2 years ago
8 0
Given that Lucky won $1000000 and has an option of receiving $50000 p.a for 30 years, the total amount received after 30 years in case he goes for option 2 will be:
amount=(yearly payment)+(number of years)
=(50000)×(30)
=$1,500,000
This implies that the second option is best choice. Given the information, we shall conclude that the best thing to do is to calculate the present value of the annuity payments.
The answer is D]
Ulleksa [173]2 years ago
8 0

Answer

calculate the present value of the annuity payments.

Explanation

The present value of an annuity is the current value of future payments from an annuity, given a specified rate of return or discount rate. The annuity's future cash flows are discounted at the discount rate. Thus, the higher the discount rate, the lower the present value of the annuity. It is calculated based on the amount payments on your specific situation. The manual formula is Annuity Value = Payment Amount x Present Value of an Annuity (PVOA) factor

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EZ Rental Car offers rental cars in an off-airport location near a major tourist destination in Florida Management would like to
trapecia [35]

Answer:

I used an excel spreadsheet to calculate this:

the least squares regression line:

y = a + bx

y = $2,937 + 3.96x

where y = total cash wash costs and x = rental returns

fixed costs = $2,937 per month

variable cost = $3.96 per car washed            

Download pdf
8 0
2 years ago
Nelson’s motto is “Go big, or go home.” Which type of investment would Nelson prefer? A. savings account B. speculative investme
il63 [147K]

Answer:speculative investment

Explanation:

just took the test.

5 0
2 years ago
Delta Lighting has 30,000 shares of common stock outstanding at a market price of $15.00 a share. This stock was originally issu
Oksi-84 [34.3K]

Answer:

Option (B) 10.87%

Explanation:

Data provided in the question:

common stock outstanding = 30,000

Market price = $15.00

Issuing price of share = $31 per share

Total face value = $280,000

Selling price = 86% of par

Cost of equity, ke = 13%

After-tax cost of debt, kd = 6.9%

Beta = 1.48

Tax rate = 30%

Now,

Market value of debt, Md = Total face value × Selling price

= $280,000 × 86%

= $240,800

Market value of equity, Me = Stocks outstanding × Market price

= 30,000 × $15

= 450,000

Thus,

WACC = [ Kd × Md + Ke × Me ] ÷ ( Md + Me )

= [ 0.069 × $240,800 + 0.13 × $450,000 ] ÷ ( $240,800 + $450,000 )

= $75,115.20 ÷ $690,800

= 0.1087

or

= 0.1087 × 100%

= 10.87%

Option (B) 10.87%

5 0
2 years ago
The center of gravity method determines the best x and y coordinates for multiple faclities by finding a central location and th
babymother [125]

Answer:

The answer is True.

Explanation:

The center of gravity method is a concept under <em>Operations Management</em> as it relates to facilities distribution such as warehouses or fulfillment centers.

Center of Gravity Strategy/Method is defined as a concept that seeks to calculate geographic coordinates for a potential single new facility that will minimize costs. Under this approach the main factors considered are:

  • Cost of Shipping
  • Markets
  • Volume of goods shipped

Operations managers prefer to use this approach in siting the location of their facilities because:

  • It minimizes cost.
  • It is simple to compute
  • It takes in to consideration existing facilities

How to use the Center of Gravity Method

Step 1:

  • Place existing facility(ies) such warehouse, fulfillment center, and distribution center locations in a coordinate grid.
  • situate the grid on an ordinary map.
  • The distances between the facilities must be noted.

Step 2:

Then, using the equations below,

   Fx= ∑ dix Vi/ ∑ Vi

   Fy= ∑ diy Vi/ ∑ Vi

Proceed to calculate the X and Y coordinates using these equations where Fx is the X (horizontal axis) coordinate for the new facility, and

Fy is the Y (vertical axis) coordinate for the new facility, dix is the X coordinate of the current location, diy is the Y coordinate of the existing location, and Vi is the volume of goods moved to or from the <em>i</em>th location.

Step 3:

After you have obtained the X and Y coordinates place that location on the map.

This approach allows for point of departure – or, literally, a starting point of where (from the perspective of longitude and latitude) you options are for where to grow your fulfillment or logistics network.

Cheers!

 

8 0
2 years ago
If gasoline taxes were significantly increased in the united states, then select one:
zmey [24]
<span>If gasoline taxes were significantly increased in the united states, then all of the above. I</span><span>t is likely that roads would become safer and the environment would become cleaner, other taxes, such as income taxes, could be lowered and some of the government regulations that require automakers to produce more fuel-efficient cars would become unnecessary.

If the government were to impose higher taxes on gasoline all of these outcomes could happen because they all relate to the use of gasoline and how it hurt our environment. If less people were using the gas, more eco friendly vehicle options would likely be on the market. </span>
4 0
2 years ago
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