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xenn [34]
3 years ago
14

CII, Inc., invests $630,000 in a project expected to earn a 12% annual rate of return. The earnings will be reinvested in the pr

oject each
Business
1 answer:
Gelneren [198K]3 years ago
8 0

Answer:

$1,956,684

Explanation:

As the project has a expected annual return, we have to calculate future value of this investment to find how much money Cll, Inc. will have after 10 years to reinvest.

We know,

FV = PV × (1 + i)^{n}

Given,

Present Value, PV = $630,000

Annual rate of return, i = 12% = 0.12

Number of period, n = 10 years

Putting the value into the above formula, we can get,

FV = $630,000 × (1 + 0.12)^{10}

FV = $630,000 × 3.105848

FV = $1,956,684

$1,956,684 can be reinvested after the liquidation of 10 years.

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When the relationship between government and interest groups becomes entangled and tight with some groups having formal governme
Talja [164]

Answer: Neo-Corporatism.

Explanation:

Neo- Corporatism emerged in resent times as a successor to State Corporatism. State Corporatism was a system whereby interest and labor groups were supposed to work together for the good of society. These were most prevalent in authoritarian regimes like Nazi Germany and post communist Lithuania.

Recently though, in some Democratic countries, interest groups have chosen to work with the Government to improve the lives of the people and enable the Government reach out deeper. These Peak Associations as they are often called help the Government compete economically and are very prevalent in countries and regions such as, Germany, Switzerland, Austria and Scandinavia.

6 0
3 years ago
Cuba is a command economy that suffered a decline in economic growth because of a cut in the aid provided by the former Soviet U
katen-ka-za [31]

Answer:

Experience an inward shift of its production possiblity curve.

Explanation:

Production possiblity curve is a graphical representation of the maximum number of products that a company can produce, if it produce only two product using all the resources efficiently. The maximum production possiblity of one product is shown on one side graph and another product on other side to compare which product can be produced to reduce cost and wastage while maximizing the profit. This also help the management to know the effecient use of resources or factor of production; Land, labour, capital and entrepreneurship. Therefore, lack of resources to Cuba have lead it´s economy to decline.

4 0
3 years ago
Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual div
Colt1911 [192]

Answer:

There's an error in the numbers for this question; I found the correct one and pasted it below;

"Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $1.30 per share but all future dividends will be decreased by 2.75 percent annually. What is a share of this stock worth today at a required return of 15.5 percent? "

Explanation:

Use dividend discount model (DDM) to calculate the stock price

P0 = \frac{D0(1+g)}{r-g}

whereby,

P0 = Current price

D0 = Last dividend paid = 130

g = growth rate = -275% or -2.75 as a decimal

r = required return = 155% or 1.55 as a decimal

Next, plug in the numbers to the DDM formula above;

P0 = \frac{1.30(1-0.0275)}{0.155 + 0.0275} \\ \\ = \frac{1.2643}{0.1825} \\ \\ =6.9277

Therefore this stock is worth $6.93

6 0
3 years ago
Peachtree Company borrows $30,000 from the local bank at 7% interest. The term of the note is five years, and the annual payment
grandymaker [24]

Answer:

B

Explanation:

Here, in this question, we are asked to determine the decrease in notes payable that peachtree should record in the first year.

To determine this, we proceed as follows;

Interest payment for the first year = 30000*7% i.e 2100

Principal amount paid = Total amount paid - Interest amount

= 7317 -2100 i.e 5217

Notes payable should be reduced by 5217

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8 0
3 years ago
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