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butalik [34]
3 years ago
6

Your grandparents would like to establish a trust fund that will pay you and your heirs $225,000 per year forever with the first

payment one year from today. If the trust fund earns an annual return of 4.4 percent, how much must your grandparents deposit today?
Business
1 answer:
xz_007 [3.2K]3 years ago
3 0

Answer:

They must deposit $5,113,636.36.

Explanation:

Giving the following information:

Cash flow= $225,000

Interest rate= 4.4 percent

To determine the amount to be deposited today, we need to use the perpetual annuity formula:

PV= Cf/i

Cf= cash flow

PV= 225,000/0.044

PV= $5,113,636.36

They must deposit $5,113,636.36.

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Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021. During 2021, equipment wit
suter [353]

Answer:

C. New equipment was purchased for $145,000 cash. d. A $29,000 note was paid at maturity on January 1 e. On January 1, 2021, bonds were sold at their $58,000 face value. f. Common stock ($45,000 par) was sold for $65,000. 9. Net Income was $90,000 and cash dividends of $50,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (.e., 10,000 should be entered as 10).) WRIGHT COMPANY Statement of Cash Flows For the year ended December 31, 2021 (s in thousands) Cash flows from operating activities Cash inflows Cash outflows Net cash flows from operating activities Cash flows from investing activities

Explanation:

8 0
3 years ago
Suppose that the annual rate of returns on dollar deposits equals 2% and the rate of return on euro deposits is 1%. Furthermore,
Oliga [24]

Answer:

I should invest in dollar deposits.

Explanation:

Current exchange rate is 1 euro = $1.08

Assuming I have y euro, the equivalent in dollar is $1.08y

Rate of return on dollar deposit = 2% = 0.02

Return on investment = $1.08y + (0.02 × $1.08y) = $1.08y + $0.0216y = $1.1016y

Rate of return on euro deposit = 1% = 0.01

Return on investment = y euro + (0.01 × y euro) = y euro + 0.01 y euro = 1.01y euro = 1.01y × $1.08 = $1.0908y

I should invest in dollar deposits because the return on investment is greater than euro deposits.

5 0
3 years ago
Find the Houston's average monthly expenditure.
Fofino [41]

Answer:

2918.25

Explanation:

8 0
2 years ago
having an arena with bandwidth that is stronger than the average event venue is one way that the atlanta hawks have ____________
IgorC [24]

Based on the product differentiation strategy, the Atlanta Hawks have "differentiated" their market offering specifically.

Atlanta Hawks ensured that they had an arena with a stronger bandwidth than the average event venue.

Atlanta Hawks is known for renovating their home arena by targeting the Millenials as their customer group.

Atlanta Hawks is an American professional basketball team that has its home in Atlanta.

Hence, in this case, it is concluded that Atlanta Hawks is one of the prominent basketball teams that employ marketing strategies to entice fans and customers.

Learn more here: brainly.com/question/22719652

8 0
2 years ago
The tendency of employees in a functionally organized company to become fixated on their own concerns and work assignments to th
lawyer [7]

Answer:

d. Siloing.

Explanation:

Siloing is the present participle of the word silo which means isolated.

The tendency of employees in a functionally organized company to become fixated on their own concerns and work assignments to the exclusion of the needs of other departments is known as siloing because that particular employee is being isolated from other departments. This might include an IT system.

4 0
3 years ago
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