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MakcuM [25]
3 years ago
9

You are thinking of building a new machine that will save you $ 2 comma 000 in the first year. The machine will then begin to we

ar out so that the savings decline at a rate of 4 % per year forever. What is the present value of the savings if the interest rate is 7 % per​ year?
Business
1 answer:
Serga [27]3 years ago
4 0

Answer:

Present Value= $18,181.82

Explanation:

Giving the following information:

Savings= $2,000

The machine will then begin to wear out so that the savings decline at a rate of 4 % per year forever.

Interest rate= 7%

To determine the present value of the savings, we need to use the perpetual annuity formula with the decline rate.

PV= Cf/ (i + g)

Cf= cash flow

PV= 2,000/ (0.07 + 0.04)

PV= $18,181.82

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uranmaximum [27]

If the inflation rate is  15 percent. The real interest rate on this bond is:22%.

<h3>Real interest rate </h3>

Using this formula

Real interest rat=Expected inflation rate+ One year yield to  maturity

Let plug in the formula

Real interest rate=15%+7%

Real interest rate=22%

Therefore the inflation rate is  15 percent. The real interest rate on this bond is:22%.

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pshichka [43]

In this instance, Xavier and Shawn are general partners. In this arrangement, all partners are equally responsible for the business, meaning they are both liable for any financial loss. LLC would protect their personal assets from this type of claim. Obviously, this isn't a sole proprietorship because there is more than one owner.

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3 years ago
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Horner Construction Co. uses the percentage-of-completion method. In 2014, Horner began work on a contract for $16,500,000; it w
Leno4ka [110]

Answer:

2014 =  zero

2015 = $6,450

Explanation:

2014

Under the completed-contract method of accounting, revenue, expenses, and gross profit is deferred until the completion of the contract.  If at the end of the business fiscal year of a company work on a contract remains incomplete, no revenue, expenses, and profit on that contract is recognized in the current year on the income statement; all costs and billings are accumulated in respective balance sheet accounts.

2015

This year, the construction is completed so Horner Construction Co. will now recognize its Revenue and gross profit in relation to the project.

            Contract price          $16,500,000

Less:     constructions costs   <u>10,050,000</u>

             Gross profit             $6,450,000

* construction cost    =    ($5,850,000 + $4,200,000)  

8 0
3 years ago
Reasons for the high cost of many application packages​
sdas [7]

Answer:

Poorly designed materials storage and packaging lines. Long packaging process times. Paying for box dimensions rather than product dimensions. Ineffective packaging materials that allow damage. Inefficient manufacturing models. Failing to optimize packaging.

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