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Helen [10]
3 years ago
6

A pension plan is obligated to make disbursements of $2.5 million, $3.5 million, and $2.5 million at the end of each of the next

three years, respectively. The annual interest rate is 8%. If the plan wants to fully fund and immunize its position, how much of its portfolio should it allocate to one-year zero-coupon bonds and perpetuities, respectively, if these are the only two assets funding the plan? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Business
1 answer:
Anit [1.1K]3 years ago
5 0

Answer:

Please see attachment

Explanation:

Please see attachment

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The u.s. economy constantly cycles through periods of expansion and contraction based on financial, political, and geopolitical
astraxan [27]
Does it it give you answer choices ?
6 0
3 years ago
Fairweather Corporation purchases merchandise on terms of 2/15, net 40, and its gross purchases (i.e., purchases before taking o
Kobotan [32]

Answer:

The answer is $53,699

Explanation:

Discount = 2%

Discount days = 15 days

Net days = 40 days

Gross purchase is $800,000 per year

Discount on the purchase is $16,000(2% of $800,000)

Therefore net purchase is $784,000($800,000 - $16,000).

Net per day is:

Net purchase ÷ 365 days

$784,000 ÷ 365 days

= $2,147.95

Total trade credit = Net per day x Net days

$2,147.95 x 40 days = $85,918

Free credit = Net per day ×Discount days

=$2,147.95 x 15= $32,219

Therefore, Costly trade credit = Total credit −Free credit

$85,918 - $32,219

= $53,699

9 0
3 years ago
Rienzi Farms grows sugar cane and soybeans on its 600 acres of land. An acre of soybeans requires 3 hours to plant and brings in
mezya [45]

Answer:

133 acres of sugar cane

and 300 of soybean provide a profit of $ 733,000

Explanation:

We setup the fromulas and use excel solver:

labor hours:  3 x sugar acres + 4 x soybean <= 1,600

profit  = 1,000 x sugar acres + 2,000 soybean

with the restriction soybean <= 300

                 SOLVER  

              acres          hours             PROFIT

sugar cane 133  x 3 = 399       x 1,000 =    133,000

soybeans 300  x 4 = 1,200           x 2,000 =<u>  600,000  </u>

                                                  TOTAL           733,000

6 0
3 years ago
Which of the following statements about torts is correct?
swat32

Hello There!

Your answer would be <u>C). A tortious act may also be a criminal act.</u>

The reason why C would be your answer is because a tortious act is something that harms someone in any way. The reason why it "may" be a criminal act is because determine if the tortious act is a criminal act really depends on the scenario that is occurring. For example, someone could cause a tortious act in a way of self defense, this scenario would be debatable because the person that committed the tortious act had a valid reason in doing so, and that was protecting themselves. But, if a person was to cause a tortious act by  hurting someone to steal from them, then that would definitely be a criminal act because they are performing dangerous things to someone else, and the person could file a lawsuit against it.

Let's dive into why the other answer choices are incorrect. We can use the old fashion process of elimination:

Answer choice "A). A tortious act is always a criminal act" is incorrect because it is not always a criminal act, it depends on the scenario it's in. This is the reason why this answer choice would be eliminated.

Answer choice "B). A criminal act is always a tortious act" is incorrect because there are MANY criminal acts that doesn't harm anyone, for example, tax evasion (not paying taxes) is a criminal act, but does not cause any harm to anyone. This is the reason why this answer choice would be eliminated.

Answer choice "D). A tortious act is the same as a contract dispute" is incorrect because harming someone is not the same as not doing what a contract says. A contact dispute is when someone that's part of a contract did not do a duty that the contract says that they're suppose to do, and that usually doesn't have to be any harm to anyone. That would not be the same as a tortious act, harming someone. This is the reason why this answer choice would be eliminated.

6 0
3 years ago
Madole Corporation has two production departments,Forming and Customizing.The company uses a job-order costing system and comput
Ludmilka [50]

Complete Question:

Madole Corporation has two production departments,Forming and Customizing.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Forming Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours.At the beginning of the current year,the company had made the following estimates:

Machining Customizing Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 20,000 2,000 $90,000 $88,000 18,000 1,000 $ 2.00 $ 4.00 During the current month the company started and finished Job K973. The following data were recorded for this job: Job K973 Machine-hours Direct labor-hours Machining Customizing 70 40 40 60.

a. Calculate the estimated total manufacturing overhead for the Forming Department.

b. Calculate the predetermined overhead rate for the Customizing Department.

c. Calculate the total overhead applied to Job K973 in both departments.

Answer:

Madole Corporation

a. Calculation of the Estimated total manufacturing overhead:

                                                                    Machining  Customizing Total

Total fixed manufacturing overhead cost   $90,000    $88,000  $178,000

Variable manufacturing overhead cost         36,000      80,000     116,000

Total overhead cost                                    $126,000  $168,000 $294,000

Estimated total manufacturing overhead cost for the Forming Department = $126,000

b. Calculation of the predetermined overate rate for the Customizing Department = Overhead cost/Direct labor hours

= $168,000/2,000

= $84 per direct labor hour

For Forming department = $126,000/18,000 = $7 per machine hour

c. Total overhead applied to Job K973:

Machining = 70 * $7 =           $490

Customizing = 60 * $84 = $5,040

Total overhead applied = $5,530

Explanation:

a) Data and Calculations:

                                                                            Machining     Customizing

Machine-hours                                                       18,000        20,000

Direct labor-hours                                                   1,000           2,000

Total fixed manufacturing overhead cost           $90,000     $88,000

Variable manufacturing overhead per machine-hour $2.00

Variable manufacturing overhead per direct labor-hour        $ 4.00

Data for Job K973

                                           Machining     Customizing

Machine-hours                     70                     40

Direct labor-hours               40                     60

4 0
3 years ago
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