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Maru [420]
3 years ago
6

he local botanical society wants to ensure that the gardens in the town park are properly cared for. The group recently spent $1

00,000 to plant the gardens. The members want to set up a perpetual fund to provide $100,000 for future replantings every 10 years. a) If interest is 5%, how much money is needed for the fund?b) If the last replanting is in year 100, how much
Business
1 answer:
Gennadij [26K]3 years ago
7 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The members want to set up a perpetual fund to provide $100,000 for future replantings every 10 years. The interest rate is 5%.

I will assume that the money is deposited as a lump sum:

FV= PV* (1 + i)^n

PV= FV/ (1+i)^10

PV= 100,000 / 1.05^10= $61,391.33

Now, if n is 100 years:

PV= 100,000/ 1.05^100= $760.45

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Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the com
spin [16.1K]

Answer: 7.48%

Explanation:

Weighted Average Cost of capital is simply the weighted average of the costs of equity and debt.

Cost of Equity

= \frac{Next dividend}{Stock Price ( 1 - flotation Costs)} + growth rate

= \frac{0.65}{19(1 -0.1)} + 0.06

= 9.80%

Cost of debt

= Interest ( 1 - Tax)

= 0.075 (1 - 0.40)

= 4.65%

WACC = 9.80% * 0.55 + 4.65% * 0.45

= 7.48%

6 0
3 years ago
​Brown's, a local​ bakery, is worried about increased costs particularly energy. Last​ year's records can provide a fairly good
Luba_88 [7]

Answer: a. 12.5%

b. -16.67%

c. 5.88%

Explanation:

a. Energy Change will be:

(Production x 12)/Energy

Last year : (1500 × 12)/3200

= 5.625loaves/BTU

Now : (1500 × 12)/2800

= 6.42857 loaves/BTU

Percent Change will be:

= [6.42857 - 5.625]/6.42857 × 100

= 12.5%

b. Capital productivity increase will be:

= Production x 12)/Capital investment

Last year : (1500 × 12)/15000

= 1.2loaves/BTU

Now : (1500 × 12)/18000

= 1 loaves/BTU

Percent Change will be:

= (1-1.2)/1.2 × 100

= -16.67%

b. Labor Change:

Last year : (1500 × 12)/340

= 52.94 loaves/labor hour

Now : (1500 × 12)/320

= 56.25 loaves/labor hour

Percent Change:

= (56.25 - 52.94/56.25) × 100

= 5.88%

6 0
3 years ago
To give something in return for something else
Akimi4 [234]
What do you mean if it’s the definition of a word is it Exchange ?
5 0
4 years ago
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Last year, while an economy was in a recession, government spending was $595 billion and government revenue was $505 billion. Ec
Nadya [2.5K]

Answer:

The correct answer is option b and option e.

Explanation:

In recession, the government spending was $595 billion and government revenue was $505 billion.

In recession the budget was in deficit as the spending was greater than revenue.

Budget deficit

= $595 billion - $505 billion

= $90 billion

At full employment the government spending was $555 billion and the government revenue was $550 billion.

Budget deficit

= $555 billion - $550 billion

= $5 billion

So, the government has a non–cyclically adjusted budget deficit of $90 billion and a cyclically adjusted budget deficit of $5 billion.

5 0
3 years ago
A company requires $1700000 in sales to meet its net income target. Its contribution margin is 40%, and fixed costs are $300000.
Zina [86]

Answer:

the correct answer is 380,000

Explanation:

1,700,000 × 40% =680,000

680,000-300,000=380,000

3 0
3 years ago
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