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Nutka1998 [239]
3 years ago
8

The cost for manufacturing a component used in intelligent interface converters was $23,000 the first year. The company expects

the cost to increase by 2% each year. Calculate the present worth of this cost over a fiveyear period at an interest rate of 10% per year.
Business
1 answer:
romanna [79]3 years ago
3 0

Answer:

present worth = $7380

Explanation:

given data

initial cash flow = $23,000

geometric gradient = 2%

interest rate i = 10% per year

time period = 5 year

solution

we get here present worth  cost that is

present worth = initial cash flow  × \frac{1-(\frac{1+g}{1+i})^t}{1-g}    ......................1

put here value and we get

present worth =  $23,000  × \frac{1-(\frac{1+0.02}{1+0.10})^5}{1-0.02}    

present worth = $23,000  × 0.32087

present worth = $7380

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In the past, the policy-making relationship between states and the federal government was called ______, since there was clear s
jeka94

In the past, the policy-making relationship between states and the federal government was called Dual federalism, since there was a clear separation of policy responsibility between the two levels.

Dual federalism, also known as hierarchical federalism or shared sovereignty, is a political arrangement in which powers are clearly divided between federal and state governments, with state governments exercising delegated powers without federal interference. .

Even the House and Senate are examples of dual federalism. Both houses may be involved in approving federal laws that affect different states and require state involvement, but issues can only be passed through the senator's desk or state senators. representative.

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7 0
2 years ago
Currently digby is paying a dividend of $19.67 (per share). if this dividend were raised by $3.64, given its current stock price
umka2103 [35]

The dividend yield for Digby is $23.33

<h3>What is Dividend Yield?</h3>
  • A financial ratio (dividend/price) called the dividend yield, which is stated as a percentage, demonstrates how much a firm pays in dividends annually in relation to the price of its stock.
  • Price/Dividend, often known as the dividend yield ratio, is the counterpart of dividend yield.
  • The amount of money a firm pays shareholders for owning a share of its stock divided by its current stock price is known as the dividend yield, which is represented as a percentage.
  • The majority of mature corporations pay dividends.
  • The dividend yields of businesses in the consumer goods and utility sectors are frequently greater than average.
  • The dividends from real estate investment trusts (REITs), master limited partnerships (MLPs), and business development corporations (BDCs) are taxed more heavily than the typical dividend.

Explanation:

Given that

Dividend per share = $19.69

Increase in Dividend = $3.64

Using this formula

Dividend yield = Dividend per share + Increase in Dividend

Dividend yield = $19.69+$3.64

Dividend yield =$23.22

Therefore the Dividend yield will be $23.22

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6 0
2 years ago
How are bonds payable usually classified on the balance sheet?
earnstyle [38]

Bonds payable that are <u>long-term obligations</u> are typically recorded on the balance sheet.

<h3><u>How do long-term liabilities work?</u></h3>

Long-term liabilities are debts owed by a business that won't be paid off for at least a year. To give a clearer picture of a company's present liquidity and its capacity to meet its obligations as they come due, the current part of long-term debt is broken out separately from other debt.

Long-term liabilities are also referred to as noncurrent liabilities or long-term debt. The balance sheet's part that may include debentures, loans, deferred tax liabilities, and pension obligations is where long-term liabilities are stated following more immediate liabilities.

Liabilities that are greater than one year in duration or that are not due within the next 12 months are referred to as long-term liabilities. The time it takes a business to convert its inventory into cash is known as its operational cycle.

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7 0
2 years ago
Fuente, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 950 2 1,180 3 1,400 4 2,140
Anon25 [30]

Answer:

$6,225.08

Explanation:

The computation of the future value of these cash flows in year 4 is shown below:

= Year 1 cash flow × (1 + interest rate)^year + Year 2 cash flow × (1 + interest rate)^year + Year 3 cash flow × (1 + interest rate)^year + Year 4 cash flow × (1 + interest rate)^year

= $950 × 1.08^3 + $1,180 × 1.08^2 + $1,400 × 1.08^1 + $2,140

= $950 × 1.259712  +  $1,180 × 1.1664  + $1,400 × 1.08 + $2,140

= $1,196.7264  + $1,376.352  + $1,512  + $2,140

= $6,225.08

3 0
3 years ago
Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash op
mr_godi [17]

Answer:

a) 17.5%

Explanation:

The computation of the simple rate of return on the investment is shown below:

Simple rate of return = Annual net income  ÷ Initial investment

where,

Annual net income is

= Sales revenue - cash operating expenses - depreciation expenses

= $250,000 - $100,000 - ($400,000 ÷ 5)

= $70,000

And, the initial investment is $400,000

So, the simple rate of return is

= $70,000 ÷ $400,000

= 17.5%

Dividing the annual net income by the initial investment we can get the simple rate of return

8 0
3 years ago
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