Suppose you buy clothes at Mimi's Clothing Shop. Your spending is Mimi's ____

You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. You curre

Fynjy0 [20]

Answer:

The correct answer is $7,056.46

Explanation:

Giving the following information:

You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. How much do you need to save each year if you can earn 7.5 percent on your savings?

Final value= 55,000*25= 1,375,000

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,375,000*0.075)/[(1.075^38)-1]= $7,056.46

5 0

2 years ago

For the past year, Momsen, Ltd., had sales of $46,382, interest expense of $3,854, cost of goods sold of $16,659, selling and ad

Ivenika [448]

Answer:

Net income= $11,412.2

Explanation:

Giving the following information:

sales of $46,382

interest expense of $3,854

cost of goods sold of $16,659

selling and administrative expense of $11,766

depreciation of $6,415

t=0.35

We need to use the following formula:

Net income= (sales - COGS - selling and administrative expense - interest expense - depreciation) - tax + depreciation

First, we deduct Depreciation to decrease the tax base, but because it is not an actual payment, we have to sum it after tax.

Sales= 46,382

COGS= (16,659)

Gross profit= 29,723

Selling and administrative expense= (11,766)

Interest=(3,854)

Depreciation= (6,415)

EBT= 7,688

Tax= (7,688*0.35)= (2,690.8)

Depreciation= 6,415

Net income= $11,412.2

6 0

3 years ago

Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Pro

Sever21 [200]

Answer:

c) $28,200

Explanation:

Calculation for What is the company's net operating income (loss)

Governmental products division's divisional margin segment $41,300

Add Export Products Division's divisional segment margin $93,700

Total divisional segment margin $135,000

($41,300+$93,700)

Less Common fixed expenses not traceable to the individual divisions ($106,800)

Company's net operating income $28,200

($135,000-$106,800)

Therefore the company's net operating income is $28,200

6 0

2 years ago

A researcher is conducting an experiment in which one group of people is exposed to an advertisementand another group is exposed

katen-ka-za [31]

Answer:

d. subjects

Explanation:

"Experimental research, often considered to be the “gold standard” in research designs, is one of the most rigorous of all research designs. In this design, one or more independent variables are manipulated by the researcher (as treatments), subjects are randomly assigned to different treatment levels (random assignment), and the results of the treatments on outcomes (dependent variables) are observed."

Reference: Pelz, Bill, and Herkimer County Community College. “Research Methods for the Social Sciences.” Lumen, 2019

8 0

2 years ago

Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment

cestrela7 [59]

Answer:

C3 should be chosen

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

For project C1:

Cash flow in year 0 = $-252,000

Cash flow in year 1 =$20,000

Cash flow in year 2 =116,000

Cash flow in year 3 =176,000

I = 10%

NPV = $5,719

For project C2

Cash flow in year 0 = $-252,000

Cash flow in year 1 = $104,000

Cash flow in year 2 = $104,000

Cash flow in year 3 = $104,000

I = 10%

NPV = $6,633

For project C3

Cash flow in year 0 = $-252,000

Cash flow in year 1 = $188,000

Cash flow in year 2 =68,000

Cash flow in year 3 =56,000

I = 10%

NPV = $17,181

C3 should he accepted because it has the highest NPV

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0

3 years ago

Suppose you buy clothes at Mimi's Clothing Shop. Your spending is Mimi's _____.