Answer:
Lump sum payment today =$6,659,388.81
Explanation:
The lump sum payment that would make her indifferent is the present value of the annuity discounted at the required rate of return of 5%.
PV = A × (1 - ((1+r)^(-n))/n)
A- $450,000, r- 5%, n = 25-1 = 24
<em>Because , the first payment occurs today, we wil take the number of payment to be 24 (i.e 25 - 1) . And then add the first payment to the Present value the of the 24 year annuity. </em>
<em>This is so because the first payment need not be discounted because it is already in present value.</em>
PV = $450,000 × 1- (1.05)^(-24)/0.05
= 6,209,388.81
Total Present value = $450,000 + 6,209,388.81
= $6,659,388.81
Answer:
Attractive nuisance doctrine
Explanation:
Under attractive nuisance doctrine, a landowner is held responsible for the injuries or death caused to children while playing on the land owned by him. The child or children could have got attracted to the land without knowing the danger or hazards present on the land.
This comes under intentional tort that imposes responsibility on the landowner for ensuring the safety of the trespassers.
Answer:
Growth rate = 6%
Explanation:
Required rate of return = 13%
Stock price = 54.30
D1 = $3.80
P0 = D1 / Ke- g
$54.30 = $3.80 / 13% - g
13% - g(54.30) = 3.80
7.059 - 54.30g = 3.80
- 54.30g = 3.80 - 7.059
- 54.30g = -3.259
g = -3.259 / - 54.30
g = 0.0600184162062615
g = 6%
Thus, the Growth rate = 6%
Answer and Explanation:
The preparation of the cost of goods sold section of a multiple-step income statement is presented below:
<u>Cost of goods section</u>
<u>Multiple-income statement</u>
Opening inventory $37,000
Estimated return inventory $1,000
Purchase $102,000
Less purchase returns -$4,200
Less: Purchase discount -$2,040
Add: Freight in $800
Less: closing inventory -$30,500
Less: estimated return inventory -$1,500
Cost of goods sold $102,560
Answer:
c- a list of items to be discussed at a formal meeting.
a- a period of time equal to sixty seconds or a sixtieth of an hour.
b-a written message in business or diplomacy
d-a message sent by telegraph and then delivered in written or printed form.
e-a pictorial symbol for a word or phrase. Pictographs were used as the earliest known form of writing, examples having been discovered in Egypt and Mesopotamia from before 3000 BC
Explanation: