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Iteru [2.4K]
3 years ago
9

After a retiring from a successful business​ career, you would like to make a donation to your university. This donation will go

into the​ school’s endowment pool and the returns generated from the donation will support the salary of a new professor in the business school on a perpetual basis. The university expects to earn returns of​ 5.5% on its endowment pool. You may assume that any distributions to support the salary will be made annually.
Part A) You can make a donation today (t=0) in the amount of $2,500,000. The first cash flow distribution from your donation to cover the professor's salary will take place in one year (at t=1). Which of the following is closest to the annual salary payment that can be made as a result of your donation?

A. $2,500,000
B. $454,545
C. $100,000
D. $137,500

Part B) After further discussions, the university determines that the employment agreement with the new professor will call for annual salary increases of 2%. Given this new requirement, and assuming the first salary distribution will still occur one year from today, what is the starting salary (at t=1) that can be supported with your $2,500,000 donation?

A. $50,000
B. $187,500
C. $140,250
D. $87,500
Business
1 answer:
ICE Princess25 [194]3 years ago
3 0

Answer:

Part A) D. $137,500

Part B) C. $140,250

Explanation:

Part A) The computation of annual salary payment is shown below:-

Annual salary = Donation made × Interest rate

= $2,500,000 × 5.5%

= $137,500

So, for computing the annual salary we simply multiply the donation made with interest rate.

Part B) The computation of starting salary is shown below:-

Starting salary = Annual salary + Increased annual salary

= $137,500 + 2%

= $140,250

Therefore for computing the starting salary we simply added the annual salary with increased annual salary.

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Answer:

51,487.5

Explanation:

Calculation to determine the minimum guaranteed mileage should the manufacturer announce

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InvNorm(100%-4%)

InvNorm(.96) = 1.75

Now let determine the minimum guaranteed mileage

Let x represent the Minimum guaranteed mileage

(2050*1.75)+47,900=x

x=3,587.5+47,900

x = 51,487.5

Therefore the minimum guaranteed mileage that the manufacturer should announce is 51,487

6 0
3 years ago
Three commonly used productivity variables are: quality, external elements, and precise units of measure. labor, capital, and ma
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Answer:

The correct answer is letter "B": labor, capital, and management.

Explanation:

<em>Labor, capital </em>and <em>management</em> are the three variables mostly used to measure productivity. Labor refers to the staff who are responsible for doing all of the physical and mental tasks that keep a company going.

Capital refers to the buildings, machinery, and tools used in the manufacturing process. It also involves talking about intellectual capital, which is the technical expertise that a company acquires over time.

Management is the development factor that connects capital and labor together. Managers incorporate innovation and creativity in using the other factors that help to create a successful company.

8 0
3 years ago
The long-run aggregate supply curve is vertical:
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Answer: Option(c) is correct.

Explanation:

The long run aggregate supply(LRAS) curve is vertical as resource prices eventually rise and fall with product prices.

When there is an increase in the price level of the output, so in the long run this will also result in an increases in the prices of the factors of production.

Hence, aggregate supply curve in the long run is vertical.

Vertical LRAS also shows that whatever change happen in the aggregate demand has a temporary impact on the level of output. Factors such as capital, labor, technology impact the LRAS because it was assumed that everything is used optimally.    

7 0
3 years ago
Milano Company has an average overhead cost per hour of $10.50 at 3,500 machine hours, and at 3,000 hours it is $11.25. The comp
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Answer:

c) VOH/hr = $6 per hour

a) Fixed overhead cost = $ 15,750

Explanation:

Overhead cost is the total of all indirect costs. Indirect costs are those which are not specifically for a particular product. They include indirect material cost, indirect labour cost and indirect expenses.

Variable overhead cost is the portion of the total overhead cost which changes with activity level changes. For example, when more machine hours are worked, more kilowatts of power would be consumed and therefore increase the power cost.

Fixed overhead costs are those which remain on change within a given level of activity.

To separate the fixed overhead from the variable, we use the following relationships below:

VOH/hr = <u>Total [email protected] high activity- Total Overhead @low activity</u>

                                        High activity - Low activity

Fixed Overhead = Total overhead @ high act. - (VOH/hr × High activity)

Note that activity level level is measured in machine hours in this question.

Total overhead = Average cost per hour  × Number of hours

Now we can determine the variable overheads per machine hour (VOH/hr)

VOH/hr =     <u>(3500× $10.50) - (3,000× $11.25)</u>

                       3,500 - 3,000 machine hours

             =          <u>$ (36,750 -  33750)</u>

                              500 hrs

              =        $6 per hour

Fixed overhead cost = ( 3500 ×10.50) - ($6 × 3500)

                                  =$ 15,750

8 0
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Alexus [3.1K]

Answer:

system administrators

Explanation:

System administrators -

It refers to the people , who are incharge to maintain the IT infrastructure of the company , is referred to as system administrators.

The person play an important role in order to maintain the system.

Hence , from the given information of the question,

The correct term is system administrators .

7 0
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