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aleksley [76]
3 years ago
7

Monopoly insurance is the only company marketing a certain line of insurance in a state. after complaints from several consumers

, the state insurance department investigated monopoly's rates. the regulators determined that monopoly was taking advantage of being the only insurer offering the line by charging more than double the actuarial cost of the coverage. which regulatory rating objective was monopoly violating?
Business
1 answer:
Rama09 [41]3 years ago
6 0
It makes the biloating rating obecyive monplly to the form of the inverstjgatdd
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During lewin's refreezing stage, managers should __________.
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Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase e
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Solution :

Calculating the (NPV) Net Present value for the following matters to check the feasibility of the replacement of an 8 year old riveting machine with the new one :

Let

A = Year (n)

B = Initial outlay

C = Five-year MACRS depreciation percentage

D = Depreciation with MACRS Method (D)

E = Savings in earnings before depreciation

F = Taxable Income (earnings before depreciation - depreciation

G = Income taxes (Taxable Income *40%)

H = \text{After-Tax Net} cash flow \text{(Taxable income - taxes + depreciation)}

I = PV of \text{Net cash flow} at the rate 12\%= NCF/ (1+WACC\%)^n

A          B          C          D             E            F             G             H              I

0      82,500                                                                        -82,500    -82,500

1                       20%   16500     27000   10500    4200     22800      20357.14

2                      32%   26400    27000    600         240      26760      21332.91

3                       19%   15675      27000  11325      4530      22470      15993.70

4                       12%   9900       27000  17100     6840      20160       12812.04

5                       11%    9075       27000  17925     7170      19830        11252.07

6                        6%   4950       27000   22050   8820     18180        9210.55

7                        0%    0             27000   27000   10800   16200       7328.06

8                        0%    0             27000   27000   10800   16200      6542.91

NPV                                                                                                    $22,329.39

As the NPV, the project is positive ($22,329.39) and so the company should replace the 8 year old riveting machine with the new one.

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This motion enforces the rules of an organization?
NemiM [27]
I believe the answer is D!

Have a Warm and Wonderful Day!!
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