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Tcecarenko [31]
4 years ago
15

The amount of money deposited 25 years ago at 5% interest that would now provide a perpetual payment of $15,000 per year is clos

est to
Business
1 answer:
Mademuasel [1]4 years ago
6 0
The amount of money needed now to begin the perpetual payments is
P = A/I =15,000÷0.05=300,000

The amount that would need to have been deposited 25 years ago is
P=A÷(1+r)^t
P=300,000÷(1+0.05)^(25)
P=88,590.83
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If a payment is directly deducted from your account, which type of card are you using?
Mekhanik [1.2K]
This is a debit card

It's a simple card where you just use it to pay with money directly from your account. If you don't have money on your account, you can't pay. There's no credits or anything similar.
8 0
3 years ago
Johnson Company has the following overhead costs: machine setup $25,000; factory maintenance $10,000; heating and lighting $15,0
kvv77 [185]

Answer:

Total overhead = $50,000

Explanation:

Activity based costing is a method of allocating production cost to various activities, from example to accounting, sales, operations and son on. A given standard amount is multiplied by the units of an activity.

In this instance the overhead includes machine setup, factory maintenance, heating and lighting.

Total overhead= machine setup + factory maintenance + heating and lighting

Total overhead= 25,000+ 10,000+ 15,000

Total overhead = $50,000

Sales expense is a direct expense so is not included.

5 0
3 years ago
Charlie manages a Holiday Inn. He knows from experience that last-minute customers will call after 9 p.m. each evening looking f
AVprozaik [17]

Charlie knows his service is <u>perishable,</u> meaning that if no one stays in the room, it generates no revenue that evening.

<h3><u>Perishable services are what?</u></h3>

While not imperishable, services can be thought of as perishable. A perishable service is simply one that is transient. Such a service is best used right away when it is created. The service, unlike products, cannot be saved for later use.

Transportation by planes, auto maintenance, entertainment at theatres, and manicures are examples of perishable services. If a person buys a plane ticket for a certain day, but then gets sick and can't fly, the ticket expires. It is challenging to maintain a balance between supply and demand when a service is perishable.

Learn more about perishable services with the help of the given link:

brainly.com/question/14029678?referrer=searchResults

#SPJ4

6 0
2 years ago
Heavy Metal Corporation is expected to generate the following free cash flows over the next three years. Thereafter, the free ca
Lisa [10]

Answer:

c. $386.7 million

Explanation:

The enterprise value of the firm is the present value of its future free cash flows discounted at the weighted average cost of capital as well as the present value of  free cash flow terminal value beyond year 3  as shown thus:

Year 1 FCF=$10 million

Year 2 FCF=$20 million

Year 3 FCF=$30 million

terminal value=Year 3 FCF*(1+terminal growth rate)/(WACC-terminal growth rate)

terminal growth rate=2%

WACC=9%

terminal value=$30*(1+2%)/(9%-2%)

terminal value=$437.14 million( $437.1 million  is wrong as it is the terminal value, not the enterprise value)

present value of FCF=FCF/(1+WACC)^n

n is the year in which the free cash flow is expected, it is 1 for year 1 FCF, 2 for year 2 FCF , 3 for year 3 FCF as well as the terminal (the terminal value is also stated  in year 3 terms)

enterprise value=$10/(1+9%)^1+$20/(1+9%)^2+$30/(1+9%)^3+$437.14 /(1+9%)^3

enterprise value= $386.7 milion

7 0
3 years ago
A firm expects to sell 26,000 units of its product at $12.00 per unit and to incur variable costs per unit of $7.00. Total fixed
Sedaia [141]

Explanation:

Given that

Number of sales units = $26,000

Sale price = $12 per unit

Variable cost per unit = $7

Fixed cost = $80,000

So, the contribution margin per unit is

= Selling price per unit - variable cost per unit

= $12 - $7

= $5

And, the contribution margin in dollars is

= Number of sales unit × sale price - number of sales unit × sale price

= 26,000 units × $12 - $26,000 × $7

= $312,000 - $182,000

= $130,000

3 0
3 years ago
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