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Yuki888 [10]
3 years ago
9

Your company has been bought out by another company. In the acquisition, you have been asked to leave the company and as severan

ce pay may take either $100,000 per year for the next ten years or a lump settlement today. If 10% is a reasonable discount rate, what would be the minimum amount you would accept today
Business
1 answer:
expeople1 [14]3 years ago
8 0

Answer:

$614,457

Explanation:

The present value of the annual cash inflow of $100,000 for ten years can be found by the following formula:

Present Value  = Annual Cash Inflow * Annuity Factor (Step 1)

Here

annuity Factor at 10% for 10 years time is

By putting values we have:

Present Value = $100,000 × 6.14457 = $614,457

Step 1 : Annuity Factor

Annuity Factor = (1 - (1 + r)^-n) / r

Here r is 10% and n is 10 years.

So by putting values, we have:

Annuity Factor = (1 - (1 + 10%)^-10) / 10%   =  6.14457

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As the company prepares to sell and open more stores in the Indian and Chinese markets, which type of strategy would you recomme
aleksandr82 [10.1K]

Answer:

Business Environment Research

Explanation:

Very intensive 'business environment research' strategy is important for any company trying to open more stores in any new market. Business Environment refers to external factors that affect a business.

All the aspects of market environment

  • Economic (Growth, Income, Monetary Policy, Interest etc)
  • Political (Political stability, business community trust)
  • Legal  (Laws, Rules & Regulations, Mandates etc)
  • Social (Customs, Beliefs, Lifestyles, Values etc)
  • Technological (Ongoing scientific & technical upgradations)

It is important to understand all these aspects to be able to understand a market better, & sell (expand) their successfully.

7 0
3 years ago
3. You run a construction firm. You have just won a contract to construct a government office building. It will take one year to
Gre4nikov [31]

Answer:

NPV= $1,983,471.1

Explanation:

Giving the following information:

To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

The formula is:

NPV= -Io + ∑[Rt/(1+i)^t]

where:

R t​     =Net cash inflow-outflows during a single period t

i=Discount rate of return that could be earned in alternative investments

t=Number of timer periods

NPV= -10,000,000 - 5,000,000/1.10 + (20,000,000/1.10^2)

NPV= $1,983,471.1

3 0
3 years ago
Central City was awarded two state grants during its fiscal year ending September 30, 2020: a $2 million block grant that can be
Monica [59]

Answer:

$1 million

Explanation:

The computation of the grant revenue recognized in the fund financial statement is presented below;

Given that

The $2 million could be used for covering up the operating expense and $1 million could be used for purchasing an equipment

So as per the given situation, the $1 million should be recognized

Therefore the same should be considered

3 0
3 years ago
Red Roofs, Inc. has current liabilities of $24,300 and accounts receivable of $7,800. The firm has total assets of $43,100 and n
Bezzdna [24]

The amount of the net working capital is -$4,900

Net working capital = $43,100 - $23,700 - $24,300 = -$4,900

What is the meaning of net working capital '?

The net working capital of a corporation is the difference between short-term assets and short-term liabilities (NWC). Positive net working capital indicates that a business has paid its debts and has funds left over to invest in other operational needs, which is fantastic.

Why is net working capital important?

Net working capital is significant because it provides insight into a company's liquidity and determines if it has sufficient funds to meet its immediate obligations. If the net working capital number is zero or higher, the company can meet its immediate obligations.

Learn more about net working capital: brainly.com/question/21852402

#SPJ4

8 0
2 years ago
Which is an example of a safety or healthy resource that you would find outside of your workplace
Licemer1 [7]
Occupational Safety and Health Administration (OSHA) is an example of a safety or healthy resource that you would find outside of your workplace. OSHA is responsible for enforcing <span>workplace health and safety standards,</span> and providing training, outreach, education and assistance.It provide information to employees in order to keep <span>their workplace free of  hazards.</span>
6 0
3 years ago
Read 2 more answers
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