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seropon [69]
2 years ago
11

Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under th

e first option, Julie would receive a lump sum of $150,000 immediately as her full retirement benefit. Under the second option, she would receive $14,000 each year for 20 years plus a lump-sum payment of $60,000 at the end of the 20-year period. Page 553 Required: If she can invest money at 12%, which option would you recommend that she accept? Use present value analysis.
Business
1 answer:
olchik [2.2K]2 years ago
8 0

Answer:

First option will be recommended.

Explanation:

To determine which option to be taken, we calculate the net present value each option generates. The option generating higher NPV should be recommended.

- Net present value of first option = Lump sum receipt = $150,000.

- Net present value of second option will be found by discounting cash flows at investing rate 12% and calculated as followed:

 +  Present value of 20 equal annual payment of $14,000 + Present value of $60,000 paid in 20 years = (14,000/12%) x [ 1 - 1.12^(-20)] + 60,000/1.12^20 = $110,792.

As net present value of the first option is higher than the second option, first option will be recommended.

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The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the fol
Fiesta28 [93]

Answer:

I used an Excel spreadsheet to calculate R² which gives us the least squares trend. See attached image.

y = 360x + 1600

R² = 0,9529

next year's enrollment should be = (360 x 5) + 1600 = 3400

5 0
1 year ago
A person works as a cashier in a major supermarket. She sells vegetables to
igomit [66]
I think the answer is D
6 0
1 year ago
Read 2 more answers
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct m
RSB [31]

Answer:

d. $1,540 F

Explanation:

The formula to compute the variable overhead efficiency variance is shown below:

= (Actual direct labor hours - standard direct labor hours) × variable overhead per hour

where,

Actual direct labor hours is 2,380

And, the standard direct labor hours equal to

= 5,200 units × 0.5

= 2,600 hours

Now put these values to the above formula  

So, the value would equal to

= (2,380 hours - 2,600 hours) × $7

= 1,540 favorable

5 0
1 year ago
U.S.-based companies should turn to the _____ for the most comprehensive source of export information.
Juliette [100K]

Answer:

Department of commerce

Explanation:

U.S.-based companies should turn to the department of commerce for the most comprehensive source of export information.

The department of commerce is a section in the United States government. It creates jobs through good and favorable international trade terms, sustainable development and through access to high technology.

It provides companies with trade informations of which exports is one.

6 0
1 year ago
In your own words, briefly describe the benefit of each type of alert below: a. Low Balance b. Mobile Deposit c. Unusual Activit
pshichka [43]

Answer:

Explanation:

a. Low Balance: You can set up your bank account for this alert on a threshold which you want to make. This alert inform you about the low balance in your bank account when it touches to the threshold you set up that may be any amount for example 50$ or 500$ or 1000$ so that you know that you shouldn't . It facilitate you to safe from the expenses like OD etc.

b. Mobile Deposit. You always receive a text message whenever you used your smartphone to deposit the check with it. It may be act as a receipt for the check submission while using with your smartphone.It also provide you a facilitation when the check is cleared and deposit received in your bank account

c. Unusual Activity. This type of alert message received while bank detects an unusual activity which could be fraud etc.For example the transactions which are made unusual and which may not be your regular activity with your account.It could also occur when your account transaction has been made outside of your normal living etc area

2.

The most important type of alert would be the Unusual Activity as it involves the risk more that other two alerts.

5 0
1 year ago
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