His net pay is $328.16.
The first step is to calculate Jerome’s salary.
Regular time - 40 x $7.80 = $312
Overtime - 5 x $7.80 x 1.5 = $58.50
Total Salary = $312 + 58.50 = $370.50
The next step is to calculate the deductions:
Social security = 370.50 x .062 = $22.97
Medicare = 370.50 x .0145 = $5.37
Federal Income Tax = $14
Total Deductions = 22.97 + 5.37 + 14 = $42.34
$370.50 - $42.34 = $328.16
Answer:
2011 = 113
2012 = 119
Explanation:
The computation is shown below:
GDP deflator = (Nominal GDP) ÷ (Real GDP) × 100
For 2011, it would be
= ($13,495 billion) ÷ ($11,919 billion) × 100
= 113
For 2012, it would be
= ($14,241 billion) ÷ ($12,007 billion) × 100
= 119
In order to find out the GDP deflator, we divided the Nominal GDP by the Real GDP
Answer:
USING 0% DISCOUNT RATE
PROJECT E
Year Cashflow [email protected]% PV
$ $
0 (23,000) 1 (23,000)
1 5,000 1 5,000
2 6000 1 6,000
3 7000 1 7,000
4 10,000 1 10,000
NPV 5,000
PROJECT H
Year Cashflow [email protected]% PV
$ $
0 (25,000) 1 (23,000)
1 16,000 1 16,000
2 5,000 1 5,000
3 4,000 1 4,000
NPV 2,000
Project A should be accepted
USING 9% DISCOUNT RATE
Year Cashflow [email protected]% PV
$ $
0 (23,000) 1 (23,000)
1 5,000 0.9174 4,587
2 6000 0.8462 5,077
3 7000 0.7722 5,405
4 10,000 0.7084 7,084
NPV (847)
PROJECT H
Year Cashflow [email protected]% PV
$ $
0 (25,000) 1 (23,000)
1 16,000 0.9714 15,542
2 5,000 0.8462 4,231
3 4,000 0.7722 3,089
NPV (138)
None of the projects should be accepted because they have negative NPV
Explanation:
The question requires the computation of NPV using 0% and 9%.
The cashflows of the two projects will be discounted at 0% and 9%.
The discount factors for each project can be calculated using the formula (1+r)-n. The cashflows of the projects will be multiplied by the discount factors to obtain the present values. NPV is the difference between present values of cash inflows and initial outlay.
The answer is D. 45 to 55%
Personally, I would choose to save that money. The reason why is you never know - maybe something bad is going to happen and you will need that extra cash. So instead of splurging it on material things, it's better to save it for a rainy day, in my opinion. Investing is not safe, given that you may lose a lot more than you invest.
