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Digiron [165]
3 years ago
11

Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $ 398 comma 930 due in 28 y

ears. Toni​ Flanders, the​ company's CEO, is scrambling to discount the liability to the present to assist in valuing the​ firm's stock. If the appropriate discount rate is 7 ​percent, what is the present value of the​ liability?
Business
1 answer:
Sladkaya [172]3 years ago
3 0

Answer:

Present value of Liability is $59,989

Explanation:

Money does not have the same value in future as it has today. The present value calculates the today's value of any that cash flow will be made in future.

Liability = FV = $398,930

Number of years = n = 28 years

Discount rate = r = 7%

Present value = FV / ( 1 + r )^n

Present value = $398,930 / ( 1 + 0.07 )^28

Present value = $398,930 / 6.65

Present value = $59,989.47

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Max chose to operate his production studio as a sole proprietorship even though his attorney cautioned that he was:____________
sergij07 [2.7K]

Answer:

<u>c. exposing himself to unlimited personal liability.</u>

Explanation:

One major characteristic of sole proprietorship being the individual is sole recipient of profits and sole bearer of all risks and liabilities.

A sole proprietor bears unlimited liability in the sense that, in case of bankruptcy, the proprietor's personal assets can be taken away to repay debts owed by him.

Though a proprietor also remains the sole recipient of all gains, similarly the proprietor is also exposed to unlimited risk.

Thus, the correct option is, c. exposing himself to unlimited personal liability   .

8 0
3 years ago
Strike offers to sell Bailey one thousand shirts for a stated price. The offer declares that shipment will be made by Dependable
maks197457 [2]

Answer: A contractual obligation om shipment is not enforceable.

Explanation: A contract is a legally binding agreement. For a contract to be legally binding it needs to have an offer and acceptance. Strike and Bailey are merchants who both agree on the stated quantity and price of shirts to be shipped. However, the declaration or condition of shipment is neither agreed nor accepted by both Strike and Bailey as Strike offered to deliver using 'Dependable Truck Line' while Bailey accepted delivery by 'Yellow Express Truck Line' that was never offered.

For a contract to exist, a complete offer and acceptance must exist on the full terms and conditions of te shipment in this case. However, there is no agreement by either party on the shipment therefore contractual obligation on shipment is not enforceable.

7 0
3 years ago
Assume that there is an improvement in the technology used by firms in a perfectly competitive industry that is initially in lon
Ratling [72]

Answer:

B) An increase in the firm's economic profit.

Explanation:

An increment in the firm's economic gain. Primarily an economic gain or loss exists the contrast betwixt the taxation received from the sale of an output furthermore some expenses of total inputs managed moreover unspecified contingency expenses. In determining financial gain, contingency expenses and specific expenses stay subtracted from taxation received. Because cost equates minimal taxation, an unprecedented acceleration in a specific rate indicates marginal taxation increases. Essentially a conclusion, all firm actuates up its marginal price curve moreover enhances the amount it generates. If a specific firm had continued gaining zero economic gain before significant increment in demand, subsequent these raises the firm acquires an economic profit.

3 0
3 years ago
For Apple Iphone 12 Launch advertisement, answer the below with short answers (Not essay):
kaheart [24]

structure because it's all about how you put it together

4 0
2 years ago
O.J. Juice Company sells bags of oranges and cartons of orange juice. O.J. grades oranges on a scale of 1 (poor) to 10 (excellen
siniylev [52]

Answer:

max z = 0.3x_{1} + 0.45x_{2} + 0.3y_{1} + 0.45y_{2}

Constraints

x_{1} +  x_{2} \leq  100,000 (Grade 9 oranges)

y_{1} +  y_{2} \leq  120,000 (Grade 6 oranges)

2x_{1} - y_{1} \geq   0 (Avg oranges in bags)

x_{2}  - 2y_{2} \geq 0 (Avg oranges in juice)

x_{1}\geq  0, x_{2} \geq  0, y_{1}\geq 0, y_{2} \geq 0

Explanation:

Let the variables used be x and y

x representing oranges of grade 9

y representing oranges of grade 6

Now, let x_{1} be the oranges used in each bag in lbs, and x_{2} be oranges used in juice of grade 9 each.

Similarly let y_{1} will represent oranges of grade 6 in bags, and y_{2} will represent oranges in juice of grade 6

Now total oranges sold in bags

= x_{1} + y_{1}

And their revenue in $ = 0.5 revenue - 0.2 expense = 0.3

Total profit from bag shall be

0.3 (x_{1} + y_{1}) = 0.3 x_{1} + 0.3y_{1}

Similarly total oranges in juice shall be

= x_{2} + y_{2}

Profit shall be

$1.50 - $1.05 = $0.45

Total profit from juice shall be

$0.45 (x_{1} + y_{1}) = 0.45 x_{2} + 0.45 y_{2}

Profit shall maximise as

z = 0.3x_{1} + 0.45x_{2} + 0.3y_{1} + 0.45y_{2}

Further constraint 1 shall be

Total amount of  grade 9  oranges used shall be max 100,000 lb

x_{1} +  x_{2} \leq  100,000

Constraint 2

Total amount of  grade 6  oranges used shall be max 120,000 lb

y_{1} +  y_{2} \leq  120,000

Constraint 3

Average quality of oranges sold in bag shall be 7

\frac{9x_{1} + 6y_{1}  }{x_{1} + y_{1}  } \geq 7

Accordingly,

9x_{1} + 6y_{1} \geq   7x_{1} + 7y_{1}

Simplifying:

2x_{1} - y_{1} \geq   0

Constraint 4

Average quality of oranges sold as juice shall be 8

\frac{9x_{2} + 6y_{2}  }{x_{2} + y_{2}  } \geq  8

Accordingly,

9x_{2} + 6y_{2} \geq   8x_{2} + 8y_{2}

Simplifying:

x_{2}  - 2y_{2} \geq 0

Constraints shall be

x_{1}\geq  0\\x_{2} \geq  0\\y_{1}\geq  0\\y_{2} \geq 0

5 0
3 years ago
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