Answer:
$5,346.98
Explanation:
Initial cash flow = 76,000
Discount rate = 5%
Suppose the C.F. in the 7th year is x which will flow till perpetuity
Present value of annual cash flow till perpetuity = Annual cash flow / Discount rate
PV at the 7th year = x/0.05
Discount factor = (1 + r)^n
Discount rate = 5%
Years D. factor Cash flows
0 0 76,000
1 0.952381 -
2 0.907029 -
3 0.863838 -
4 0.822702 -
5 0.783526 -
6 0.746215 -
7 0.710681 x/0.05
So, 76000 = 0.710681 *(x/0.05)
76000 / 0.710681 = x / 0.05
x = 76000 / 0.710681 * 0.05
x = 5346.98408990813
x = 5346.98
Hence, if the interest rate is 5%, $5346.98 will be received annually from the 7th year
Answer:
When the new processes are developed for manufacturing it results in interest rate fluctuations. However, operational costs would become uncertain which would further affect the total production costs. Thus the value of an investment would be impacted. Automobile demand from the customers will also get affected. thus, fall in interest rate will have a significant and positive affect on the sale of automobiles as well as revenue.
Answer:
depreciable value = $72,000 - $6,000 = $66.000
depreciation expense per unit produced = $66,000 / 500,000 units = $0.132 per unit
depreciation expense year 1 = 90,000 x $0.132 = $11,880
depreciation expense year 2 = 82,000 x $0.132 = $10,824
depreciation expense year 3 = 94,000 x $0.132 = $12,408
Year Depreciation expense Book value
0 $0 $72,000
1 $11,880 $60,120
2 $10,824 $49,296
3 $12,408 $36,888
<h2>The company is expressing its key corporate value with a slogan. (Option A)</h2>
Explanation:
The slogan is self explanatory that ladies and gentlemen taking care of ladies and gentlemen.
About the slogan:
- So it adds values both to employees as well as the customer.
- Slogan is more of customer-friendly
- The slogan is always the right aspect to express the motto, culture of the organization and hotel chain Ritz-Carlton has smartly framed it.
Justification about the other options:
- If the slogan is adding value to the employees alone, then it means that company is valuing the customer who is the king for business.
- Even the last option stands invalid because, the focus of customer is lost, it feels like self-appraising the company itself.
Answer:
The most likely result at trial is that the landowner's claim for specific performance will be successful, and she will be awarded the entire price of contract.
Explanation:
When there isn't a statute, the buyer bears the risk of loss when property subject to a contract for sale is destroyed without fault of any party prior to the date specified for closing. Unless the contract specifies otherwise, the buyer must pay the contract price even if the property is damaged by fire.
The inn was burned down in this case after the landowner and the buyer signed a contract for the sale of the property, but before the closing date. The contract appears to be silent on the risk of loss, and no appropriate statute exists. As a result of the common law rule, the buyer bears the risk of loss. Therefore, the landowner has the right to particular execution of the contract, which implies that the entire stipulated contract price must be paid by the buyer.
Regardless of the property's drop in worth owing to the fire, the $1 million contract price must be paid by the buyer because he bears the risk of loss.
Therefore, the most likely result at trial is that the landowner's claim for specific performance will be successful, and she will be awarded the entire price of contract.
