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wlad13 [49]
2 years ago
6

Tom Adams has received a job offer from a large investment bank as a clerk to an associate banker. His base salary will be $59,0

00. He will receive his first annual salary payment one year from the day he begins to work. In addition, he will get an immediate $15,000 bonus for joining the company. His salary will grow at 3.9 percent each year. Each year he will receive a bonus equal to 10 percent of his salary. Mr. Adams is expected to work for 20 years. What is the present value of the offer if the discount rate is 10 percent?
Business
1 answer:
Aloiza [94]2 years ago
3 0

Answer:

Present value of the offer = $739,018.03

Explanation:

The cash flows described in the question from end of year 1 to end of year 20 represent a growing annuity for  20 years. The present value of a growing annuity is calculated as follows:

PV= \frac{P}{i-g}*[1-[\frac{1+g}{1+i}]^n]

where P = the annuity payment in the first period

          i = interest rate per period that would be compounded for each period

         g = growth rate

         n = number of payment periods

P in the 1st year = the base salary of $59,000 + the 10% bonus of $5,900 = $64,900; g is 3.9% ;i=0.1 and n = 20

Present value of the offer = 15,000 received immediately + PV of the growing annuity

= 15,000+\frac{64,900}{0.1-0.039}*[1-[\frac{1+0.039}{1+0.1}]^2^0]=739,018.03

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slamgirl [31]

Answer:

A falling interest rate will lead to a movement along the demand curve for loanable funds

Explanation:

A movement along the demand curve for a good or service is caused by a change in the price of the good or service.

Because the interest rate is the price of the loanable funds, a falling interest rate will cause a movement along the demand curve for loanable funds. More specifically, a falling interest rate, in other words, a lower price, will increase the demand for the loanable funds, so the movement will be upwards.

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The following is TRUE about Inventory:________.A. Firms decrease inventory because there is a risk of significant and unpredicta
Aleks [24]

Answer:

The correct answer is option (c).

Explanation:

Solution

From the question sated above the answer is, Firms or organisation decrease inventory because the more we spend on inventory, the more we will need to spend on the other related inventory expenditures.

The reason is because if the inventory is kept full or complete, then the cost related or connected with the maintenance of the inventory increases or goes up and it is not beneficial for the company itself.

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. ________ refers to a marketing strategy in which the firm develops both the product and its marketing to evoke a distinct impr
777dan777 [17]

Answer:

D. Positioning.

Explanation:

Positioning is a market strategy that tries to create a product with similar features to that of its competitors and tries to drive the image through marketing.



This ịs a very powerful marketing concept because it builds a product's reputation and makes it distinguishable from the products of other competitors. This is done to try to occupy the mind of its intended customers and get them to see the difference between their product and that of rival companies. This type of advertising has become very common.

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2 years ago
Which loan created a habit where the borrower kept coming back to request an extension?
Anna35 [415]

Answer:

Extension proposals are not rare because of the buyer's perspective of bridging finance as well as the explanations for both the requirements can indeed be broad. The much more common explanations are.  

Explanation:

  • It has required longer than planned to secure planning approvals.
  • When a transaction has been negotiated, the borrower awaits an exchange of contracts.
  • Additional resources as well as time are needed by the creditor to accomplish his project.
  • Refurbishment analysis was suddenly postponed.
  • Before actually refinancing the debt, the creditor waits for something like a new lender to conclude his thorough research.
  • Throughout the final moment, the buyer of the creditor's property backs out, causing the borrower to bring the estate back into the marketplace.
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2 years ago
Pharoah Company assembled the following information in completing its March bank reconciliation: Balance per bank $23700 Outstan
Natasha2012 [34]

Answer:

Pharaoh will reduce its cash balance by $1,130

None of the answer options was correct, maybe something was missing in the question like notes collected or other NSF checks.

Explanation:

Pharaoh Company's bank reconciliation:

balance per bank account   $23,700

- outstanding checks            ($4,800)

+ deposits in transit                 $7,750

<u>- NSF checks                            ($500) </u>

total                                        $26,150

<u>- cash balance per books    ($27,280)</u>

difference                               ($1,130)

In order to reconcile the bank account, we do not consider any bank service fees because they are already included in the bank balance. What we must consider are the NSF checks that we deposited and thought were good checks, but instead they bounced.

3 0
2 years ago
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