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padilas [110]
3 years ago
9

Your mother and father are retired and need income to live on. The local financial advisor offers to sell them a product that wi

ll provide them $75,000 a year for 15 years. Prevailing interest rates are 8%. The cost to purchase the product is $750,000.
They asked you to evaluate the offer. Do you recommend they purchase the product? Why?
If prevailing interest rates were 5%, would it change your recommendation? Why?
Business
1 answer:
klio [65]3 years ago
3 0

Answer:

To evaluate the choice, we have to calculate the present value of future cash flows and compare it with the cost. We use the following formula

    present value    =  C ×  [ \frac{1 - (1 + i)^{-n} }{i} ]​

where

                     C = yearly payments = 75000

                     i =  interest rate  = 8%

                     n = no. of years   = 15

put the given values in above equation, we get

       Present value = 75000 ×8.559478688

                               = 641,961

Since the present value of cash flow 641,961 is less than the cost 750,000, I would not recommend it.

If Interest rate = 5%, then:

Do the same procedure as above but take i=5%

        Present value = 75000 × 10.37965804

                                = 778,474

Since the present value of future cash flows 778,474 is greater than the cost 750,000, I would recommend it.

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delegation is the transfer of responsibility for the performance of an activity to another person quizlet
Lostsunrise [7]

Delegation is the transfer of responsibility for the performance of an activity from one individual to another while retaining accountability.

Maryland Nurse Practice Act: "The nurse may delegate the responsibility to perform a nursing task to an unlicensed individual or a certified nursing assistant.

Definition of delegation. The process of delegating the responsibility and authority to perform a task to another person who takes on that authority and responsibility. The delegator continues to be responsible for the task.

Delegation refers to transferring responsibility for a particular task from one person to another. From an administrative point of view, delegation occurs when a manager assigns a specific task to an employee.

Authority is the ability to perform a job in a particular role. Responsibility pertains to reliability, reliability, and commitment to work performance.

Learn more about accountability here: brainly.com/question/980342

#SPJ4

5 0
2 years ago
What is one strategy that can help a person avoid spending too much money
Rainbow [258]

Explanation:

A. Choosing a loan with a compound rather than

6 0
3 years ago
Read 2 more answers
All of the following are true about marketing except which?
Zina [86]

Answer:

The correct answer would be option C, Successful marketing usually result in one winner and one or more losers.

Explanation:

Marketing is basically the set of activities that promote the buying or selling of a product of the company. Many strategies are used to promote the product of service of a company. Advertisement, selling, promotions, etc are all parts of marketing plans.

When a marketing plan is implemented, the company hopes to get the best out of that plan. A successful marketing plan does not usually result in one winner and one or more losers. A marketing plan is either successful or unsuccessful. It is totally the matter of the company. If the marketing strategies turn out to be great, the marketing plan is considered the Success for the company, and vice versa. So it is always one winner or loser, which will always be the company.

6 0
3 years ago
You are scheduled to receive $34,000 in two years. When you receive it, you will invest it for 7 more years at 7.5 percent per y
hoa [83]

Answer: $65186.16

Explanation:

Since the individual is scheduled to receive $34,000 in two years and will then invest it for 7 more years at 7.5 percent per year. The amount that the person will have in 9 years will be:

FV = PV(1 + rate)^n

where,

PV = present value = $34000

Rate = 7.5% = 0.075

n = number of years = 7

FV = 34000 × (1 + 7.5%)^9

FV = 34000 × (1 + 0.075)^9

FV = 34000 × 1.075^9

FV = 34000 × 1.91724

FV = $65186.16

The amount in 9 years will be $65186.16

3 0
3 years ago
A particular dress manufacturer closes a factory in South Carolina and moves the factory to Malaysia, where labor costs are lowe
mr_godi [17]

Answer:

de-industrialization

Explanation:

De-industrialization is a process in which there is a shift of industries from an economy.

It is not necessary that the industry is then relocated somewhere else.

But it does not work any further in the city it is setup. Here also, the factory is closed in South Carolina. That is de-industrialization in the current city.

Although, the industry is setup in Malaysia, but the company do not work in its earlier location. And it has shifted from original location.

Thus, it is a case of de-industrialization.

8 0
3 years ago
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