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denis-greek [22]
3 years ago
14

A one-time gift to your college will provide $25,000 in scholarship funds next year with that amount increasing by 2 percent ann

ually thereafter. If the discount rate is 5.5 percent, what is the current value of this perpetual gift? a) $748,602.49 b) $726,849.29c) $714,285,71
Business
1 answer:
kherson [118]3 years ago
6 0

Answer:

c) $714,285.71

Explanation:

The computation of the current value of this perpetual gift is shown below:

= (Scholarship fund provided next year) ÷ (discount rate - growth rate)

= ($25,000) ÷ (5.5% - 2%)

= ($25,000) ÷ (3.5%)

= $714,285.71

In order to find out the current value, we considered all the given information that are mentioned in the question

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Joe has just moved to a small town with only one golf​ course, the Northlands Golf Club. His inverse demand function is pequals
Crazy boy [7]

Answer:

Club membership fee of $60 would maximize profit.

If the club charges tow part pricing the maximum revenue can be $3500.

Explanation:

Joe has entered into a monopoly because he is owner of single golf course in the Northlands.

Demand function for Joe's golf course is:

P = 160 - 2q

P = $20 , q = 50

160 - 2 (50) = 60

Consumer surplus = 0.5 * equilibrium quantity

Consumer Surplus for Joe is ; 0.5 * 50 (160 - 20) = $3500  

If MR = MC then demand function will become :

160 - 4q

If q = 25 then

160 - 4 * 25 = 60

6 0
2 years ago
Joslyn Company manufactures metal brackets. The estimated number of metal bracket sales for the first three months of the curren
Alexus [3.1K]

Answer:

Production= 1,240 units

Explanation:

Giving the following information:

Sales:

February= 1,250

March= 1,200

Desired ending finished goods inventory is equal to 20 percent of the next month's sales.

To determine the production required for February, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 1,250 + (1,200*0.2) - (1,250*0.2)

Production= 1,240 units

7 0
3 years ago
A(n) _____ is central to individuals and organizations of all sizes and ensures that information can be shared across all busine
Ann [662]

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3 0
3 years ago
Select all the choices that decision makers could use marginal analysis for to make effective decisions.
mylen [45]
<span>Adding a machine to the factory and producing another car would be the choices that decision makers could use marginal analysis to make effective decisions.</span>
7 0
2 years ago
Read 2 more answers
Kater Company manufactures shelving units. The company receives pre-cut wood, drills holes in the wood so that movable shelves m
MArishka [77]

Answer: Please see below for answers.

Explanation:

Variable costs are referred to as  costs  incurred to a company which change  as the  volume of production by the company or business changes   that is  when the volume of production increases, the costs increases , and decreases with decreased production.

Fixed costs  are expenses incurred to a company which do not change in relation to the volume of production by the company or business that is  when the volume of production increases or decreases, the  costs remains the same.

a. Supervisor of the Drilling Department----- Fixed cost

b.Oil used to lubricate drill press machines---- Variable cost

c.Propane for forklift trucks used to move the material from the Drilling      Department to the Assembly Department---- Variable cost

e.Natural gas used to heat the plant----- Variable cost

f.Security guard---- fixed cost s

g.Insurance on factory building----- Fixed costs

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4 0
3 years ago
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