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lys-0071 [83]
3 years ago
5

You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $28,000, $32,000, $66,000,

and $99,000 to you each year over the next four years, respectively. All payments will be made at the end of the year. If the appropriate interest rate is 3.6 percent, what is the value of the settlement offer today
Business
1 answer:
larisa86 [58]3 years ago
6 0

Answer:

$202,137.90  

Explanation:

Year Annual payment Discount factor  Present value  

1 $28,000          0.965250965 $27,027.03  

2 $32,000          0.931709426         $29,814.70  

3 $66,000          0.899333423         $59,356.01  

4 $99,000          0.868082454 $85,940.16

Total present value                                         $202,137.90  

The discount factor should be computed by  

= 1 ÷ (1 + interest rate)^years  

where,  

rate is 3.6%  

Year = 0,1,2,3,4 and so on  

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Dmitriy789 [7]

Marginal productivity theory assumes that a worker’s income is a function of the contribution of that worker to the value of the output. in business, this is called the "value-added" approach.

There is a correct theory called marginal productivity theory. Wages are paid at a level equal to the marginal revenue product of labor, the MRP (value of the marginal product of labor). MRP is the increase in income caused by the increase in output produced by the last employed worker.

The marginal productivity theory of income distribution proposes that each individual should receive income based on their contribution to total output. The marginal productivity theory of income distribution has been criticized for the following reasons. Income from inheritance is inconsistent with the theory.

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7 0
2 years ago
For Gundy Company, units to be produced are 5,280 in quarter 1 and 6,400 in quarter 2. It takes 2.0 hours to make a finished uni
Lorico [155]

Answer:

Total cost= $350,400

Explanation:

Giving the following information:

For Gundy Company, units to be produced are 5,280 in quarter 1 and 6,400 in quarter 2. It takes 2.0 hours to make a finished unit, and the expected hourly wage rate is $15 per hour.

Quarter 1:

Direct labor cost= 5,280*2= 10,560 hours

Quarter 2:

Direct labor cost= 6,400*2= 12,800 hours

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7 0
3 years ago
The processes a firm uses to turn inputs into outputs of goods and services is called
Troyanec [42]

The correct answer is technology.

The processes that a firm uses in order to turn inputs into outputs of goods and services is called technology.

6 0
3 years ago
How do organizations calculate various costs, and what do these calculations mean to business?
QveST [7]

Answer:

See the explanation section

Explanation:

Organizations calculate various costs with the help of the weighted average cost of capital. It is a significant cost measurement system through which organizations can calculate the cost of debt after tax, cost of new equities, cost of existing equities, and cost of preferred shares. WACC can be a benchmark for the organization. A firm needs to know those costs because it can make sure that whether those projects are running smoothly to continue or running worse to reject.

Another significant cost measurement method is the net present value. With the help of NPV, a business can make sure about a project to accept it or reject it.

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2 years ago
A perfectly competitive firm, with MC=q operates in a market character,zed by the following market demand and supply conditions:
PolarNik [594]

Answer:

Since a perfectly competitive firm must accept the price for its output as determined by the product’s market demand and supply, it cannot choose the price it charges. Rather, the perfectly competitive firm can choose to sell any quantity of output at exactly the same price. This implies that the firm faces a perfectly elastic demand curve for its product: buyers are willing to buy any number of units of output from the firm at the market price. When the perfectly competitive firm chooses what quantity to produce, then this quantity—along with the prices prevailing in the market for output and inputs—will determine the firm’s total revenue, total costs, and ultimately, level of profits.

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3 years ago
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