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rosijanka [135]
3 years ago
15

A magazine subscription is running out and you can renew it by sending $10 a year (the regular rate) or get a lifetime subscript

ion to the magazine for $100. Your cost of capital is 7%. How many years would you have to live to make the lifetime subscription the better buy
Business
1 answer:
dlinn [17]3 years ago
8 0

Answer:

15.7 years

Explanation:

We employ a mathematical approach to solve this;

Present value (PV) of $10 per year at start of year, for n years = $100 (lifetime subscription, life = n years)

Now, we need to get the equivalent amount at the end of each year. This is obtainable from the cost of capital. Which is 7% and that is same as 0.07.

Therefore, we are expecting a value of 1+0.07 = 1.07 and this brings the equivalent amount at the end of each year = 10*1.07

Now, this equivalent amount at the end of each year will give;

(10*1.07)(1.07^n - 1)/(0.07*1.07^n) = 100

Where n is the number of years

n = 15.7 years

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Solomon Services Company has 69 employees, 29 of whom are assigned to Division A and 40 to Division B. Solomon incurred $413,310
Nitella [24]

Answer:

  • Division A - $173,710
  • Division B - $239,600

Explanation:

First determine the fringe benefits per employee for the whole company;

= 413,310 / 69

= $5,990 per employee

Division A has 29 employees so the fringe benefit cost is;

= 29 * 5,990

= $173,710

Division B has 40 employees so the fringe benefit cost is;

= 40 * 5,990

= $239,600

5 0
3 years ago
​First, compute cost of goods manufactured. Schedule of Cost of Goods Manufactured Beginning Work-in-Process Inventory 38000 Dir
Ganezh [65]

Answer:

Cost of manufactured period=  $221000

Explanation:

We need to calculate the production during the period.

Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress

Beginning work in progress= $38000

Cost of raw materials= beginning inventory + purchase - ending inventory= 28000 + 70000 - 33000= $65000

Direct labor= 80000

Manufactured overhead=38000

Ending work in progress= 0

Cost of manufactured period= 38000 + 65000 + 80000 + 38000= $221000

6 0
2 years ago
The idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called:
olganol [36]

The idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called optimal-wage theory.

<h3>What is optimal-wage theory?</h3>

Optimal efficiency wage is one that that do occur when marginal cost of an increase in wages can be attributed to the marginal benefit associated to productivity.

Hence, idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called optimal-wage theory.

Learn more about optimal-wage theory at:

brainly.com/question/11555274

#SPJ1

8 0
1 year ago
What is a tort? A. A breach of contract B. A legally-binding contract between two parties that includes consideration C. An agen
ElenaW [278]
I am positive it is D

Good luck!
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3 years ago
Who decides whether a suspect will be tried for an alleged crime
Nadusha1986 [10]
District attorney decides if a suspect will be tried for a crime.
5 0
3 years ago
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