__________ separating lanes mean changing lanes is illegal.

Environmental recovery company RexChem Part- ners plans to finance a site reclamation project that will require a 4-year cleanup

kvv77 [185]

Complete question Text:

Environmental recovery company RexChem Partners plans to finance a site reclamation project that will require a 4-year cleanup period. The company will borrow $1.8 million now to finance the project. How much will the company have to receive in annual payments for 4 years, provided it will also receive a final lump sum payment after 4 years in the amount of $800,000? The MARR is 10% per year on its investment

Answer:

We are going to receive annual payment of $395,471

Explanation:

We solve for the present value of the lump-sum today:

PRESENT VALUE OF LUMP SUM

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 800,000.00

time 4.00

rate 0.1

$\frac{800000}{(1 + 0.1)^{4} } = PV$

PV 546,410.76

Now, we deduct this fromthe 1,800,000 loan:

1,800,000 - 546,410.76 = 1,253,589.24

this value will be the amount the yearly installment will ghave to pay.

Installment of a present annuity

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 1,253,589.24 €

time 4

rate 0.1

$1253589.24 \div \frac{1-(1+0.1)^{-4} }{0.1} = C\\$

C $ 395,470.805

8 0

2 years ago

Sparks Fireworks manufactures and sells fireworks. Their raw materials used is $71,500. Their beginning raw materials inventory

algol13

Answer:

The correct answer would be, $70500

Explanation:

Raw Material Turnover means what amount of raw materials is used within a specific period of time. So the raw material turnover would be calculated by adding the beginning inventory with the amount of material used within the period, and then the remaining material will be deducted. So the whole calculations are shown as follows:

Beginning Raw Material Inventory: $5000

Raw Material Used: $71500

Ending Raw Material Inventory: $6000

Raw Material Inventory Turnover:

Beginning Inventory + Raw Material Used - Ending Raw Material

= 5000+71500-6000= $70500

7 0

2 years ago

2. A specialty chemical company is considering expanding its operations into Brazil, where five companies dominate the consumpti

krek1111 [17]

Answer:

Indirect Distribution Sales Channel

Explanation:

The specialty chemical company has five companies that are the consumers of the specialty chemicals. Therefore, it is a Business to Business transaction between the specialty chemical company and their target business customers.

The company should utilize an indirect distribution network. It can be sales operations only where the chemical is manufactured and being supplied to companies in Brazil. There should be carefully selected distributors who have their locations near the five companies. This network, will reduce lagging time of order delivery and sales efficiency will increase.

4 0

2 years ago

Imagine that you are holding 7,000 shares of stock, currently selling at $70 per share. You are ready to sell the shares but wou

Readme [11.4K]

Answer:

Consider the following calculations

Explanation:

Number of Shares held = 7000

Current Price = $ 70

Portfolio Value = 7000 * 70 = 490,000

If continued to hold the shares

Portfolio value at $ 57 = 7000 * 57 = 399,000

Portfolio Value at $ 77 = 7000 * 77 = 539,000

If implemented collar strategy - Selling a call option and buying a put option

Call option

Strike Price = 75

Price of the option = $ 2

Put Option

Strike Price = 65

Price of the option = $ 4

Amount received on sale of Call option = 7000 * 2 = 14,000

Amount paid on buying a put option = 7000 * 4 = 28,000

Value of the Portfolio = 7000 * 70 + 14000 – 28000 = 490,000 +14000 – 28000 = 476,000

If the stock price in January is 57

As the strike price 75 is higher than the current market price of 57, the call option buyer will allow the option to expire

As the strike price of 65 is higher than the current price of 57, the investor will utilise the put option

Profit from Put option can be obtained by buying shares from market and selling the same under the put option

Profit from put option =7000 * (65-57) = 7000 * 8 = 56000

Value of the portfolio = Holding Value at current price + premium received – premium paid+ profit from put option

= 7000 * 57 + 14000 – 28000 + 56000

= 399000 + 14000 – 28000 + 56000

= 441,000

If the stock price in January is 70

As the strike price 75 is higher than the market price of 70, the call option buyer will allow the option to expire

As the strike price of 65 is lower than market price of 70, the invest will allow the put option to expire

Portfolio Value = Holding value at current market price + premium received – premium paid

= 7000 * 70 + 14000 – 28000

= 490000 + 14000 – 28000 = 476,000

If the market price in January is 77

As the strike price of 75 is lower than market price of 77, the buyer of call option will enforce the call option

Loss from call option = 7000 * (77-75) = 7000 * 2 = 14000

As the strike price of 65 is lower than market price of 77, the investor will allow the put option to expire

Portfolio Value = Holding value at current market price + premium received – premium paid – loss on call option

Portfolio value = 7000 * 77 + 14000 – 28000 – 14000

= 539000 + 14000 – 28000 – 14000

= 511,000

Download xlsx

4 0

2 years ago

In the construction of a new housing development, which factor of production can be categorized as land?

Aliun [14]

The question above is not complete, the alternatives attached to the question are as follow:

A) The people working to develop the community
B) Bike paths and stores
C) Solar power
D) The idea to develop the housing community

ANSWER
The correct option is B.
Land as a factor of production refers to all the natural resources that are free gifts of nature. According to this definition, land as a factor of production include the following: forests, oceans, rivers, mountains, climate, light, heat of the sun and natural resources such as crude oil, copper, gold, silver, coal,etc. The characteristics of land include the following: it is a free gift of nature, fixed in quantity, permanent in nature, immovable, differs in fertility, etc.

8 0

2 years ago