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3 years ago

The present value of an ordinary annuity is:

Business

1 answer:

Colt1911 [192]3 years ago

3 0

Answer:

B) The amount that would be paid today in order to receive a series of equal payments in the future

Explanation:

Present value of a cashflow by itself is its dollar value today. An Ordinary annuity is a series of recurring equal cashflows ; they occur at the end of each period like at the end of the year, end of the month, end of each quarter etc. This is unlike an Annuity due whose recurring payments occur at the beginning of each period like beginning of the year, beginning of the month, beginning of each quarter etc.

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Bubba's Custom Shrimp Catering uses activity-based costing to determine the cost of its catering events. The firm has two activi

Svetach [21]

Answer:

The best option would be option d since it provides the least cost and therefor a higher possibility of being the most profitable.

a. Total cost for option a=$37,000

b. Total cost for option b=$36,250

c. Total cost for option c=$33,750

d. Total cost for option d=$30,625

Explanation:

Step 1: Determine the formula total cost

Total cost=direct costs+cooking cost+serving cost+improvement costs

Consider option a

where;

direct costs=$400×25=$10,000

cooking costs=cooking cost per catering event×number of catering events

cooking costs per year=500×25=$12,500

serving cost=serving cost per plate×number of events×number of plates per event

serving cost per plate=$12

number of events=25

number of plates per event=(80/100)×50=40

serving cost=12×25×40=$12,000

Improvement costs=$2,500

replacing;

Total cost=10,000+12,500+12,000+2,500=$37,000

Consider option b

where;

direct costs=$10,000

cooking costs=cooking cost per catering event×number of catering events

cooking costs per year=500×25=$12,500

serving cost=serving cost per plate×number of events×number of plates per event

serving cost per plate=$12×0.75=$9

number of events=25

number of plates per event=50

serving cost=9×25×50=$11,250

Improvement costs=$2,500

replacing;

Total cost=10,000+12,500+11,250+2,500=$36,250

Consider option c

where;

direct costs=$10,000×0.75=$7,500

cooking costs=cooking cost per catering event×number of catering events

cooking costs per year=500×25=$12,500

serving cost=serving cost per plate×number of events×number of plates per event

serving cost per plate=$12×0.75=$9

number of events=25

number of plates per event=50

serving cost=9×25×50=$11,250

Improvement costs=$2,500

replacing;

Total cost=7,500+12,500+11,250+2,500=$33,750

Consider option d

where;

direct costs=$10,000×0.75=$7,500

cooking costs=cooking cost per catering event×number of catering events

cooking costs per year=500×25×0.75=$9,375

serving cost=serving cost per plate×number of events×number of plates per event

serving cost per plate=$12×0.75=$9

number of events=25

number of plates per event=50

serving cost=9×25×50=$11,250

Improvement costs=$2,500

replacing;

Total cost=7,500+9,375+11,250+2,500=$30,625

7 0

3 years ago

The sign on the shoe store door said: "Ninety-nine percent of our clients are satisfied customers!" They based this on the comme

Makovka662 [10]

Answer:

Option A

Explanation:

A biased sample is the one in which only that part of a lot is chosen as sample which works with the decision desired. As for in the given case, the store chooses to receive a review from the customers who are happy.

A smiling face confirms that the person is happy with the store service.

Thus, when we provide them the comment card maximum feasibility is that they shall write back a positive comment about the store service.

In this manner if comment card is not provided to unhappy customers, the opinion formed is a biased opinion.

Final Answer

Only customers with happy faces are given an option to fill the comment card.

8 0

3 years ago

Why should small business owners understand the concept of contract modification and settlement of disputed and undisputed debts

nekit [7.7K]

They should understand when they need professional advice, they need to get it. Let the small business owner hire a tax accountant, lawyer, and subscribe to a debt collection service. (Kevin k)

6 0

3 years ago

How would you expect each of the following to affect the economy-wide demand for U.S. money (currency)? a. Competition among bro

Anna007 [38]

Answer:

Market interest rate is also known as nominal interest rate. The nominal interest rate is sum of real interest rate and inflation rate. Fed try to control the monetary condition and real interest rates by manipulating money supply. These interest rates also affect the demand of money in market.

Part (a)

When commission of brokers decreases then buying and selling of stocks becomes easier and cheaper and people would transact in more and more stocks which will decrease the demand of money as liquidity of stock has increased.

Part (b)

When grocery store starts accepting credit cards then people would need to carry less cash and demand of money will decrease.

Part (c)

As financial investors are now worried about riskiness of stocks so they will decrease their investment in stocks and prefer holding more money so demand of money will increase.

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3 years ago

Lloyd is chronically-ill and received tax-qualified long-term care insurance benefits in 2018 amounting to $8,000 to cover a 30-

Pepsi [2]

Answer:

A) $0

Explanation:

as per IRC section 101g, if the payment exceeds the greater of per actual cost then the excess payment amount will be taxable.

total tax free payment = 360*30

= $10,800

Therefore, The taxable amount is $0

4 0

3 years ago