1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
OverLord2011 [107]
3 years ago
11

Sally Hamilton has performed well as the chief financial officer of the Maxtech Computer Company and has earned a bonus. She has

a choice among the following three bonus plans: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) A $50,000 cash bonus paid now. A $10,000 annual cash bonus to be paid each year over the next six years, with the first $10,000 paid now. A three-year $22,000 annual cash bonus with the first payment due three years from now. Required: Evaluate the three alternative bonus plans. Sally can earn a 6% annual return on her investments. (Round your answers to nearest whole dollar amount.) What is the present value of the first alternative

Business
1 answer:
alexira [117]3 years ago
7 0

Answer and Explanation:

First alternative Present value;

= $50,000

The $50,000 is to be paid now so this is its present value.

Second alternative;

This is an Annuity due as the first payment is now. The present value is;

= 10,000 * Present Value of Annuity dude factor for 6 years, 6%

= 10,000 * 5.2124

= $52,124

Third alternative;

= 22,000/(1 + 6%)^3 + 22,000/(1 + 6%)^4 + 22,000/(1 + 6%)^5

= $52,337

The third alternative should be chosen as it offers the highest present value.

You might be interested in
In recent years, consumers have protested against starbucks' practice of buying cheap coffee from colombian farmers and then sel
djyliett [7]

It is Raising Awareness.  

It is actually changing people’s perspective towards things they have been thinking to be right or wrong.  

In this scenario, it is generally thought and has been accepted by people that Starbucks Coffee price is too high, because they have the best quality coffee and for that they are charging high.  

But in reality, they get the raw material from farmers of Colombia at a very cheap price. This is what most of the people don’t know about. So the consumers who came to know about it, started to protest against them, thus creating awareness about this to other people.  

4 0
3 years ago
Read 2 more answers
1. What kinds of resources can likely be shared across different brands between an apparel maker and a footwear maker? What kind
shtirl [24]

Explanation:

Apperel maker and footwear maker are industries that use as common resources such as packaging, distribution, marketing and selling operations.

On the other hand, the resources that are unlikely to be shared, we can mention different types of machinery for confection, raw material and specialized professionals.

5 0
4 years ago
Read 2 more answers
Bài tập thực hành kế toán tài chính 1
djverab [1.8K]

Answer:

wut is this

Explanation:

financial acc practice ex 1

8 0
3 years ago
Aisletton, an electronic gadgets manufacturer, organizes its workforce into various departments based on the service the departm
patriot [66]

Answer: Product departmentalization

 

Explanation: In simple words, product departmentalization refers to a process in which an organisation puts all the activities related to a project under a single manager. All the activities relating to that product will be performed in that separate department.

In the given case. the organisation is dividing all their products in separate departments. Hence we can conclude that they most likely follows product departmentalization.

8 0
4 years ago
Strategic leaders use internal and external analyses in tandem to create a customized fit between a company's ______.
sweet-ann [11.9K]

Strategic leaders use internal and external analyses in tandem to create a customized fit between a company's internal resources and external environment.

<h3>Who are Strategic leaders?</h3>

The center of attention for organizational learning is on strategic leaders. They encourage an environment of inquiry and look for lessons in both successful and bad results.

Organizational structure, resource allocation, and strategic vision are all functions of strategic leaders. Strategic leaders deal with extremely complex challenges in an uncertain environment while also being influenced by external events and organizations.

Process simplification, increased strategic productivity, and innovation are all benefits of strategic leadership. Employees may be independent, productive, and push for new ideas under this leadership. Programs for incentives and rewards are essential for strategic leaders. They support staff members in achieving their strategic objectives.

To know more about strategic leaders refer to:brainly.com/question/15171930

#SPJ4

8 0
2 years ago
Other questions:
  • The equity method of accounting for an investment is used when a company purchases:_______. A) More than 20% of the equity secur
    7·1 answer
  • . Willie Company's retained earnings increased $20,000 during 2010. What was Willie's 2010 net income or loss given that Willie
    14·1 answer
  • Delwazic Inc. is a multinational corporation (MNC) that creates products specialized for a few host countries. It manufactures b
    10·1 answer
  • Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on
    8·1 answer
  • Paul sells one parcel of land (basis of $100,000) for its fair market value of $160,000 to a partnership in which he owns a 60%
    11·1 answer
  • Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $90 per unit. Variable exp
    11·1 answer
  • A company's balance sheet shows: cash $26,000, accounts receivable $32,000, equipment $54,000, and equity $74,000. What is the a
    5·1 answer
  • Why should employees review their hiring process
    5·1 answer
  • A company's income statement showed the following: net income, $131,000; depreciation expense, $38,500; and gain on sale of plan
    15·1 answer
  • Discuss the HT forecasting model particularly the encircle balancing supply &amp; demand.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!