Answer:
$3,438,289
Explanation:
First we need to calculate the future value of investment after 10 years.
A fix payment for indefinite period of time is a perpetuity payment. It will be value using perpetuity formula
Value of investment after 10 years = Yearly cash flow / interest rate
Value of investment after 10 years = $230,000 / 4.5% = $5,111,111
Now we need to discount this value to calculate the amount of deposit required today.
Present value = Future value x ( 1 + r )^-n
Today's value = $5,111,111 x ( 1 + 4.5% )^-9 = $3,438,289
<span>While a familiar benchmark, the number of people who know of Big Macs are not comparable to those who buy them regularly. Thus, comparing a not-as-commonly purchased product with living essentials (such as staple foods and toiletries) provides a level of disconnect that hinders the very comparison it is intended to support.</span>
Within a ________________________ economy, we often see both producers and consumers responding to the incentive of price changes.
Answer:
market economy
Answer:
3.95 %
Explanation:
This can be calculated mathematically as follows;
The current rate on two year T Security = ((1 + R1) * (1 + R2))^0.5 -1
In the question, R1 = 3.75 and R2 = 4.15
We plug both in the equation above;
((1+3.75%) * (1+4.15%))^0.5 - 1
(1.0375 * 1.0415)^0.5 - 1 = 1.0395 - 1 = 0.0395 or simply 3.95%
Answer:
C. $16 of overhead cost should be assigned to each standard handbag and $40 of overhead cost should be assigned to each deluxe bag.
Explanation:
Given that
Total indirect manufacturing expected = $52000
And,
Total hours required to manufacture handbags is
= (2,000 standard handbags × 2 hours) + (500 deluxe handbags × 5 hours)
= 4,000 + 2,500
= 6,500
So,
Indirect cost per hour is
= $52000 ÷ 6500
= $8 per hour
Now
Cost allocated to standard handbags is
= $8 × 2
= $16
And, for deluxe handbag it is
= $8 × 5
= $40