Answer:
c) $714,285.71
Explanation:
The computation of the current value of this perpetual gift is shown below:
= (Scholarship fund provided next year) ÷ (discount rate - growth rate)
= ($25,000) ÷ (5.5% - 2%)
= ($25,000) ÷ (3.5%)
= $714,285.71
In order to find out the current value, we considered all the given information that are mentioned in the question
Answer:
Given:
Implicit Cost = $65,000
Total revenue = $150,000
Explicit cost = $85,000
Here, we'll compute the economic profit for the first year as :
<em>Economic profit = Total revenue - (Explicit cost + Implicit Cost)</em>
<em>Economic profit = </em>$150,000 - ($85,000 + $65,000)
<em>Economic profit = $0 </em>
<em></em>
<em>∴ </em><u><em>Tom’s economic profit for his first year in business will be $0</em></u>
<u><em>The correct option is (a).</em></u>
Answer:
In the context of types of rating errors, Jonathan commits the contrast error.
Explanation:
Contrast error is a concept which involves the rating of an employee according to any other employee. This is an error in which a person is compared with the other and not to any certain standard. In this concept, an individual sets a standard on which the others' work is evaluated. This type of error majorly occurs during interviews and while evaluating the performances for appraisals.
Answer:The increase in the supply of crops had decreased price by a greater percentage than the percentage increase in the quantity of sales.
Explanation:
An increase in supply leads to a fall in price due to large volume of goods supply compare to non increasing demand and when the rate of fall is greater than sales this will not lead to a rise in revenue despite the increase in effective supply to the market.
Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. The document which is applicable here is an A. <u>insurance certificate.</u>
<u />
Explanation:
- A certificate of insurance is a document used to provide information on specific insurance coverage.
- The certificate provides verification of the insurance and usually contains information on types and limits of coverage, insurance company, policy number, named insured, and the policies' effective periods
- Certificate of Insurance is a summary document usually issued by an agent on behalf of an insurer that says a policy has been issued to an insured for a general type of risk.
- The Certificate is usually issued to a third party who wants some evidence or assurance that a policy has been issued.
- A certificate of insurance is requested when liability and large losses are a concern.
- Most commercial leases require the tenant to provide certificates of insurance or other evidence of insurance. Certificates of insurance are typically issued by an agent or broker for the named insured and set forth the coverages written for the insured
