Answer:
We can use the present value of an annuity formula to determine the annual distribution. I'm assuming that your distributions will be made in a similar manner to an annuity due (the first payment happens when you retire).
annual distribution = principal balance / PV annuity factor
- principal balance = $2,000,000
- PV factor annuity due, 8%, 15 periods = 9.24424
annual distribution = $2,000,000 / 9.24424 = $216,350.94
if instead, the first distribution is received at the end of the first year of retirement, then the annual distribution will be:
annual distribution = principal balance / PV annuity factor
- principal balance = $2,000,000
- PV factor ordinary annuity, 8%, 15 periods = 8.55948
annual distribution = $2,000,000 / 8.55948 = $233,659.05
Answer:
Correct option $170,803
Explanation:
Consider the following calculation
NPV = -168000 - 24000 + ((640000 - 466000 - 42000)*(1 - .35)+42000)*PVAF(12%, 4 years) - 55000*PVF(12%, 3 year) + 24000*PVF (12%, 4 year)
= -192000 + 127800*3.03735 - 55000*.71178 + 24000*.6355
= 172.277
Answer:
None of the following answer choices is correct.
Explanation:
In pursuing its own best interest Firm A will in no case concede that cigarette smoking causes lung cancer. Cigarette smoking is injurious to health and mostly firm print this warning on the cigarette labels but since it is an addiction people do not care to read this.
Answer:
- Inventory
- Current Liabilities
Explanation:
The journal to record the given transaction is shown below:
Inventory A/c Dr $50,000
To Accounts payable $50,000
(Being the purchase of inventory is recorded)
Since the inventory is a purchase which increases the inventory so the respective account is debited and the account payable is credited as its increases in current liabilities
So, no impact on total stockholders
A command economy is one in which a centralized government controls the means of production. The government determines what is produced, how it is produced and how it is distributed. Private enterprise does not exist in a command economy. The government employs all workers and unilaterally determines their wages and job duties. There are advantages and disadvantages of command economy structures. Command economy advantages include low levels of inequality and unemployment and the common good replacing profit as the primary incentive of production. Command economy disadvantages include lack of competition and lack of efficiency.
Because the government controls the means of production in a command economy, it determines who works where and for how much pay. This power structure contrasts sharply with a free market economy, in which private companies control the means of production and hire workers based on business needs, paying them wages set by invisible market forces. In a free market economy, the law of supply and demand dictates that workers who have unique skills in high-demand fields receive high wages for their services, while low-skill individuals in fields that are saturated with workers settle for meager wages, if they can find work at all.
<span>
Read more: What are the advantages and disadvantages of a command economy? | Investopedia http://www.investopedia.com/ask/answers/032515/what-are-advantages-and-disadvantages-command-economy...
Follow us: <span>Investopedia on Facebook</span></span>
