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kompoz [17]
3 years ago
9

Beacon Industries disclosed the following minimum rental commitments under non-cancelable operating leases in its 2017 annual re

port: Minimum operating lease payments Amount (in millions) 2018 $ 89 2019 58 2020 42 2021 32 2022 25 Total $246 What is the present value of these operating lease payments, assuming a 6% discount rate?
A. $246 million
B. $215 million
C. $ 70 million
D. $225 million
E. None of the above
Business
1 answer:
eduard3 years ago
3 0

Answer:

B. $215 million 

Explanation:

The present value of the payment can be found by discounting each cash inflow by the 6% discount rate.

The present value can be found using a financial calculator:

The cash flow for year one = $89

The cash flow for year two = $58

The cash flow for year three = $42

The cash flow for year four = $32

The cash flow for year five = $25

All cash flows are in millions

I = 6%

NPV = $214.87 Million

I hope my answer helps you

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Choose the correct statement. A. Income tax creates a deadweight loss in the markets for capital and labor. B. Income tax is a t
mixer [17]

Answer:

The correct answer is option A.

Explanation:

Income tax is a tax imposed by the government on the income earned by the individuals. This income can be from capital and labor. It creates a deadweight loss in the market for labor and capital.

Deadweight loss is the loss to economic efficiency and production caused by a tax. The imposition of a tax creates a tax wedge, this tax wedge leads to a deadweight loss. Deadweight loss due to income tax is the loss of purchasing power or reductions standard of living due to tax.  

The inefficiency or tax burden depends upon the elasticities of demand and supply. Whoever has the least elasticity will share most of the tax burden.

7 0
3 years ago
You have two options for how to spend the afternoon. you can either go see a movie with your roommate or work as a tutor for the
erma4kov [3.2K]

Answer: Economic Surplus : $12

Explanation: Economic surplus is the difference between benefit and cost.

In this case, since he is working as a math tutor, he will get $45, there is no other cost. But if he goes for a movie, he will have to spend $12 on movie, which is the cost he needs to bear. The economic surplus is $12 which is not spent on the movie and worked as a math tutor.

5 0
3 years ago
A company has a $36 million portfolio with a beta of 1.2. The futures price for a contract on the S&P index is 900. Futures
Blizzard [7]

Answer:

Explanation:

A:

Number of contracts required:

= (0-1.2)×36,000,000÷(900×$250)

= -192

Since negative value, short 192 contracts.

B:

= (0.9 - 1.2)×36,000,000÷(900×$250)

= -48

Since negative value, short 48 contracts.

C:

= (1.8 - 1.2)×36,000,000÷(900×$250)

= 96

Since positive value, long 48 contracts.

7 0
3 years ago
The money paid to corporate investors in return for their investment is called _______.
Andrej [43]
It's called dividend. It's their share of the profit
8 0
3 years ago
As Vince described his firm's landscape maintenance program to the buyer for Allentown Medical Center, Alex (the buyer) interrup
sasho [114]

Answer:

Direct denial

Explanation:

In responding to obejections one can use various methods that suits the particular situation. A person can provide a logical argument when the objection is valid in a bid to convince the other party that their product is suitable for their needs.

In this instance Vince's firm has been in operation for over 15 years. The objection that start-up landscaping firms go in and out of business in just a few months can be answered with a direct denial.

Vince told them the business is not a startup but has been in business for 15 years.

8 0
3 years ago
Read 2 more answers
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