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UNO [17]
3 years ago
12

Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under th

e first option, Julie would receive a lump sum of $150,000 immediately as her full retirement benefit. Under the second option, she would receive $14,000 each year for 20 years plus a lump-sum payment of $60,000 at the end of the 20-year period.Required:1. Calculate the present value for the following assuming that the money can be invested at 11%.2. If she can invest money at 11%, which option would you recommend that she accept?
Business
1 answer:
evablogger [386]3 years ago
6 0

Answer:

1.the present value for the following assuming that the money can be invested at 11% is $1,209,346.73

2.if she can invest money at 11%, I will recommend that she accept the first option of taking a lump sum of $150000

Explanation:

a) using the compound interest formula

A= p[1+r%]^n

P= $150000 n=20 r=11%

A= 150000[ 1+11/100]^20

A=150000[1.11]^20

A=150000 ×8.062311536

A= $1,209,346.73

2. The first option will give her $1,209,346.73 and the second option will give her ($14,000 ×20)+$60,000= $340000

Therefore the first option is better to accept because she will make more money in the first option than in the second option.

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An undergraduate business student has purchased a laptop computer for use during exams. This laptop is perfectly reliable except
g100num [7]

Answer:

probability of a reliable performance = 19/20

Explanation:

If a new battery has just been installed, then the chances of failure are only contributed by the faulty microchip, which has a failure rate of 1 in 20 hours.

Therefore in 1 hour, the probability that the laptop will perform reliably is calculated as follows:

Chances of failure = 1 in 20

20 hours = 1 chance of failure

∴ 1 hour = 1/20 chance of failure

1/20 = 0.05 chance of failure

Now, let us express 0.05 as fraction:

0.05 = 5/100

Therefore in 1 hour, there is a 5 in 100 chances of failure.

But we are asked to find the probability that the laptop will perform reliably. This is simply done by finding the difference between the total chances of occurrence (100)  and the chances of failure (5)

∴ Probability of reliable performance in one hour = (100 - 5) / 100

= 95/100

95/100 = 19/20

8 0
3 years ago
Myrtle Flower Company, sends its management trainees to an assessment center. There, the employees are assigned to small groups
soldi70 [24.7K]

Answer:

leaderless group discussion

Explanation:

Based on the scenario being described it can be said that the type of term for this type of development exercise is a leaderless group discussion or LGD for short. This exercise focuses on placing individuals in a group in order to work together on solving specific problems without help from a trained professional or expert in the matters that they are dealing with.

6 0
3 years ago
Last year Swensen Corp. had sales of $303,225, operating costs of $267,500, and year-end assets of $195,000. The debt-to-total-a
kolbaska11 [484]

Answer:

The correct option is D

There is increase in ROE by 2.86%

d. 2.86%

EXPLANATION:

THIS IS THE COMPLETE QUESTION BELOW;

Last year Swensen Corp. had sales of $303,225, operating costs of $267,500, and year-end assets of $195,000. The debt-to-total-assets ratio was 27%, the interest rate on the debt was 8.2%, and the firm's tax rate was 37%. The new CFO wants to see how the ROE would have been affected if the firm had used a 45% debt ratio. Assume that sales and total assets would not be affected, and that the interest rate and tax rate would both remain constant. By how much would the ROE change in response to the change in the capital structure?

a. 2.08%

b. 2.32%

c. 2.57%

d. 2.86%

e. 3.14%

CHECK THE ATTACHMENT BELOW FOR DETAILED EXPLANATION

3 0
3 years ago
Review the following conversation: Marcy: Dana, can I talk to you for a couple of minutes? We’ve been roommates for two years an
babunello [35]

Answer:

Coaching.

Explanation:

Coaching is demonstrated as the method of training in which a more experienced or proficient person provides suggestions and guidance to an individual(employee) with an aim to build and develop his/her skills, competence, performance, and career. <u>The managers are required to be efficient coaches as it helps them in promoting better engagement in the team and enhancing productivity as well as customer support of the organization</u>. It helps the managers to develop the skills in employees and boost their self-confidence which makes them able to overcome challenges effectively, improve their performance, and reach desired goals.

7 0
3 years ago
Suppose that investment is $130 billion, saving is $110 billion, government expenditure on good and services is $120 billion, ex
Natali5045456 [20]

The amount of tax revenue is $130 billion and teh governemnt budget balance is negative 10 billion

<u>Explanation:</u>

We are given

I = 130 billion, S = 110 billion, G = 120 billion, X = 210 billion and M = 220 billion, we need to derive tax revenue = T??

At equilibrium; S+T +M = I+X+G or

110 + T + 220 = 130 + 210 + 120 or  

T + 330 = 460, implies tax revenue (T) = $130 billion

the government budget is calculated as follows:

Government budget = G-T = 120 minus 130 = -10 billion

6 0
3 years ago
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