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xxTIMURxx [149]
3 years ago
13

Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10 years. You require a 7% retur

n. The present value annuity factor at 7% for 10 years is 7.0236. What is the most you should pay for this investment?
Business
1 answer:
baherus [9]3 years ago
6 0

Answer:

$175,590

Explanation:

Data provided in the question

Per year amount = $25,000

Present value annuity factor for 10 years at 7% = 7.0236

So by considering the above information

Paying amount for the investment

= Per year amount × Present value annuity factor for 10 years at 7%

= $25,000 × 7.0236

= $175,590

We simply multiplied the amount per year with the present value annuity factor so that the correct amount could arrive

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. Materials are added at the beginning of a process in a process costing system. The beginning Work-in-Process Inventory was 30%
natita [175]

Answer:

B. units started this period in this process

Explanation:

The equivalent units is the metric to account cost for the period cost.

With stared during the period, the formula will be:

Started during the period - incomplete ending + incomplete beginning

Because the materials are added entirely at the beginning, the beginning WIP has all the materials already added. Those unit do not recieve any material therefore, none are incomplete.

Also, the ending is complete as well, so there is no incomplete portion

leaving the formula with:

started during the period - 0 + 0 = started during the period

3 0
3 years ago
makes and sells tasty burritos for $8 per unit with a unit variable cost of $6. All sales are for cash and the variable costs ar
serg [7]

Answer:

$36,160

Explanation:

expected cash flow for March

Beginning cash balance    $34,000

Sales                                   $177,280

Variable costs                   -$132,960

S&A costs                           -$48,000      

without depreciation                        

ending cash balance          $30,320

desired ending cash         -$66,480

cash deficit to be                $36,160

covered by bank loan

6 0
3 years ago
Partly because of professional loyalty to their clients, pr professionals have many of the same ___________ that advertising pro
aliina [53]

The answer in the space provided is conflicts of interest. Conflicts of interest occurs when a company or a person has multiple interest or financial in which it has been interfered because of a presence of corruption in terms with the decision making or even the motivation that they once had.

3 0
3 years ago
The formula for the cross-price elasticity of demand is percentage change in rev: Multiple Choice quantity demanded of B/percent
seropon [69]

Answer:

Quantity demanded of B/percentage change in price of A.

Explanation:

Cross price elasticity of demand is calculated as follows:

= Percentage change in quantity demanded for Good B ÷ Percentage change in price of good A

Cross price elasticity of demand is positive for the substitute goods and negative for the complimentary goods.

For Substitute goods:

It states that there is a positive relationship between the price of a good and the quantity demanded for its substitute goods.

For complimentary goods:

It states that there is an inverse or negative relationship between the price of a good and the quantity demanded for its complimentary goods.

3 0
4 years ago
Your father is about to retire, and he wants to buy an annuity that will provide him with $91,000 of income a year for 25 years,
Elena L [17]

Answer:

Present Value of Annuity is $1,263,487

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where

P = Annual payment = $91,000

r = rate of return = 5.15%

n = number of years = 25 years

PV of annuity = $91,000 x [ ( 1- ( 1+ 0.0515 )^-25 ) / 0.0515 ]

PV of Annuity = $1,263,487

4 0
3 years ago
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