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poizon [28]
1 year ago
13

You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $27,000, $31,000, $64,000,

and $96,000 to you each year over the next four years, respectively. All payments will be made at the end of the year. If the appropriate interest rate is 4.9 percent, what is the value of the settlement offer today
Business
1 answer:
Citrus2011 [14]1 year ago
5 0

Answer:

$188,625.23

Explanation:

Data provided in the question:

Annual payments made : $27,000, $31,000, $64,000, and $96,000

Now,

Present value = ( Cash flow ) ÷ ( 1 + r )ⁿ

Here,

r is the interest rate = 4.9% = 0.049

n = year

thus,

Year         Cash flow           Present value

  1             $27,000              $25,738.79

  2            $31,000              $28171.55

  3            $64,000             $55443.86

  4            $96,000             $79281.03

======================================

Value of settlement today = $188,625.23

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For product W, a firm has an annual holding cost percentage of 20%, an ordering cost of $110 per order, and annual demand of 15,
Rudiy27

Answer:

812.40 units

Explanation:

Given that,

Annual holding cost percentage = 20%

Ordering cost = $110 per order

Annual demand = 15,000 units

Units Ordered - Price Per Unit

1-250 - $30.00

251-500 - $28.00

501-750 - $26.00

751 and up - $25.00

Optimal order quantity:

= \sqrt{\frac{2\times Annual\ demand\times Cost\ per\ order}{Holding\ cost} }

= \sqrt{\frac{2\times 15,000\times 110}{25\times0.2} }

= \sqrt{\frac{3,300,000}{5} }

= 812.40

Therefore, the optimal order quantity is 812.40 units.

3 0
1 year ago
The following stock transactions were completed by the executive vice president of Vinco, Inc., a publicly traded corporation: J
kirza4 [7]

Answer:

d- EVP has a short-term swing profit is $3000

Explanation:

Lets first understand what short-term swing profit is. Short-term swing profit is profit dependent upon a rule normally set by the securities & exchange commission which states that  any profits made by company insiders through the purchase and sale of share/stocks within six months must be returned to the company. Company insiders are people/employees working within the entity mostly having more than 10% of company's shares or employees such as executives, directors and managers.

Now It's not clear from the question what the purchase price of the shares was when EVP sold them on January 12 2016, assuming these shares were purchased at $20, then the short-term swing profit would be $2000 as at January. Then EVP purchases 100 shares at $20 and sells them at $30 per share as at june. The additional short-term swing profit would be $1000 (i.e $30-$20=$10 per share).

Therefore the total short-term swing profit is $3000

4 0
2 years ago
E&J Auto Body Shop estimated overhead cost for the coming year will be $15,000 and 5,000 direct labor hours will be worked.
kondor19780726 [428]

Answer:

correct option is b. $ 30

Explanation:

given data

overhead cost = $15,000

direct labor hours = 5,000

required direct labors hours = 10

solution

we get here Fixed Overhead Rate that is

Fixed Overhead Rate = estimated overhead cost ÷ direct labor hours ........1

Fixed Overhead Rate = \frac{15000}{5000}  

Fixed Overhead Rate = $3 per labor hour

and

Job overhead applied express as

overhead = Fixed Overhead Rate  × required direct labors hours  ..........2

overhead  = $3 × 10

overhead = $30

so correct option is b. $ 30

8 0
2 years ago
On July 1 of the current year, the assets and liabilities of John Wong, DVM, are as follows: Cash, $10,970; Accounts Receivable,
irinina [24]

Answer:

$40,732

Explanation:

The computation of the amount of stockholders' equity is shown below:-

Amount of stockholders' equity = Cash + Accounts Receivable + Supplies Land - Accounts Payable

= $10,970 + $8,795 + $1,803 + $24,968 - $5,804

= $46,536 - $5,804

= $40,732

Therefore we have applied the above formula to reach out the amount of stockholders' equity.

3 0
1 year ago
After assessing the market growth potential and market competitiveness in Mexico for his company's baby products, Harold wanted
Arturiano [62]

Answer:

After assessing the market growth potential and market competitiveness in Mexico for his company's baby products, Harold wanted to evaluate market access. To do this, Harold would consider ease of assessing or developing distribution channels and brand familiarity

<u>Explanation: </u>

Harold would, first of all, find out the ease in accessing the market. If he finds that it is easy to access the market or target the consumers than he will develop distribution channels. Distribution channels take lots of time and effort.

Than Harold will determine the brand familiarity which means he will make the consumers familiar with his company's baby products. Brand familiarity affects the consumer's information about the product.

5 0
2 years ago
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