Answer: $21291.6
Explanation:
The equivalent annual worth of the savings will be calculated thus:
Annual cost savings in year 1 = $15000
Increase in annual cost savings = $3000
Project period = 6 years
Interest rate = 15%
Annual worth of savings = A + G(A/G, 15%, 6)
= 15000 + 3000(15,000/3000, 5%, 6)
= 15000 + 3000(5000, 0.15, 6)
= 15000 + 3000(2.0972)
= 15000 + 6291.6
= 21291.6
Therefore, the annual worth of savings will be $21291.6
Answer:
PV= $40,716,437.34
Explanation:
Giving the following information:
Cash flow= $3,400,000 per year
Number of years= 25
Interest rate= 6.7%
To calculate the present value, first, we will calculate the future value:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {3,400,000*[(1.067^25) - 1]} / 0.067
FV= 206,006,183.4
Now, the present value:
PV= FV/(1+i)^n
PV= 206,006,183.4/ (1.067^25)
PV= $40,716,437.34
Answer:
Compensatory Damages
Explanation:
Based on this scenario it can be said that Donald is entitled to Compensatory Damages. This is a lawsuit that covers the loss that the non-breaching party incurred as a result of the breach of contract. In this scenario, Donald's employer breached the contract by firing Donald before the twelve months. Therefore Donald can sue for compensatory damages which would be the amount of money that he would have made in the rest of the twelve months.
Answer:
Bait and Switch
Explanation:
Bait and switch is a deceptive sales technique that draws customers in with the promise of low prices and then "switches" to say that the promised item is not available. It is actually illegal under <em>some </em>circumstances in the United States.
