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valentinak56 [21]
3 years ago
6

Doris's Fashions has just signed a $2.2 million contract. The contract calls for a payment of $0.6 million today, $0.8 million o

ne year from today, and $0.8 million two years from today. What is this contract worth today if the firm can earn 8.2 percent on its money
Business
1 answer:
Pavlova-9 [17]3 years ago
4 0

Answer:

$2.02 million

Explanation:

We need to calculate the present value of Doris's contract given the following three cash flows:

Year 0 $0.6 million

Year 1 $0.8 million

Year 2 $0.8 million

interest rate = 8.2%

present value (in million) = $0.06 + ($0.8 / 1.082) + ($0.8 / 1.082²) = $0.6 + $0.74 + $0.68 = $2.02 million

*present value formula = future value / (1 + r)ⁿ

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Naylor Company had $154,200 of net income in 2016 when the selling price per unit was $155, the variable costs per unit were $95
mihalych1998 [28]

Answer:

Units sold in 2016 = 12118.33

Explanation:

Given that

Net income = 154200

Fixed inputs = 572900

Selling price per unit = 155

Variable cost per unit = 95

Recall that

Net income = total revenue - total expenses

And that

Net income = (selling price - variable cost) × number of goods sold - fixed cost

Thus

154200 = (155 - 95)x - 572900

572900 + 154200 = 60x

727100 = 60x

x = 727100/60

x = 12,118.33 units

4 0
3 years ago
Read 2 more answers
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 6 percent, -14 percent, 12perce
Alexeev081 [22]

Answer:

1.6%

Explanation:

For computing the average nominal risk premium, first we have to determine the average nominal return which is shown below:

= (Stock over past five years) ÷ (number of years)

= (6% - 14% + 12% + 9% + 11%) ÷ (5 years)

= 4.8%

Now the average nominal risk premium would be

= Average nominal return - average T-bill rate

= 4.8% - 3.2%

= 1.6%

3 0
3 years ago
In microeconomics, what term refers to the measurement of responsiveness of the quantity demanded or the quantity supplied to a
Bess [88]
Hello!
The answer to your question is "price elasticity".
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5 0
3 years ago
When targeting customers of the consumer population to market a
Delicious77 [7]

Answer:

The correct answer is A

Explanation:

Demographics information is the term which is described as the statistical data regarding the characteristics of the population like income, age and gender.

When the data assembles regarding the ages of the people and the genders, it would be an example of the information to be assembled regarding demographics.

Therefore, when the company want to target the customers of the consumer population to the market, the kind of the segmentation will help the company is the demographic information.

4 0
4 years ago
Current Attempt in Progress Incorrect answer icon Your answer is incorrect. Carla Willis will invest $34,700 today. She needs $1
Nitella [24]

Answer:

12.18%

Explanation:

Present value = $34,700

Future Value = $173,500

Time (n) = 14 years

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(1 + i)^14 = $173,500/$34,700

(1 + i)^14 = 5

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1 + i = 1.1218284

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So, the annual interest rate she must earn is 12.18%.

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