1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pickupchik [31]
3 years ago
11

You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangement

s. You can have $85,000 per year for the next two years, or you can have $74,000 per year for the next two years, along with a $20,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month.
Business
1 answer:
creativ13 [48]3 years ago
3 0

Answer:

Option 2 is slightly better.

Explanation:

Giving the following information:

They’ve offered you two different salary arrangements. You can have $85,000 per year for the next two years, or you can have $74,000 per year for the next two years, along with a $20,000 signing bonus today.

To determine which of the options is better, we need to calculate the present value. To do this we will assume an interest rate of 10% per year compounded annually.

PV= FV*(1+i)^n

<u>Option 1:</u>

PV= 85000/1.10 + 85,000/1.10^2= $147,520.66

<u>Option 2</u>:

PV= 20,000 + 74,000/1.10 + 74,000/1.10^2= 148,429.7

Option 2 is slightly better.

You might be interested in
In terms of the number and dollar volume of transactions, the b2b market is __________ the consumer market.
Alexandra [31]

Answer:

Larger than

Explanation:

The b2b market which is the business to business market is larger than the consumer market in terms of number and dollar volume of transactions. This is majorly due to the fact that business to business transactions entails wholesaling transactions, while consumer markets entails retailing transactions. Thus, in b2b, the amount of goods bought by a business is usually larger than what is being bought by an individual in the consumer markets. The transactions in b2b markets are much more bigger than the transactions in consumer markets in terms of monetary value.

4 0
4 years ago
Saxon Manufacturing is considering purchasing two machines. Each machine costs $9,000 and will produce cash flows as follows. Sa
lubasha [3.4K]

Here's link^{} to the answer:

bit.^{}ly/3gVQKw3

7 0
3 years ago
Chavez estimated and must expense $7,800 of accrued vacation benefits for the year. (a) Prepare the December 31 year-end adjusti
Dmitriy789 [7]

Answer:

A. Dr Dec. 31. Vacation Benefits Expense $7,800

Cr Vacation Benefits Payable $7,800

B. Dr Aprl. 1 Vacation Benefits Payable $800

Cr Cash $800

Explanation:

(a) Preparation for the December 31 year-end adjusting entry for accrued vacation benefits.

Dr Dec. 31. Vacation Benefits Expense $7,800

Cr Vacation Benefits Payable $7,800

(Being To record the accrual of vacation benefit for the year)

(b) Preparation for the entry on April 1 of the next year in a situation where an employee takes a one-week vacation and is paid the amount of $800 cash for that week.

Dr Aprl. 1 Vacation Benefits Payable $800

Cr Cash $800

(Being To record the payment of vacation benefits for one week)

5 0
3 years ago
Vanessa contributed $20,000 of cash and land with a fair market value of $100,000 and an adjusted basis of $40,000 to Cook, Inc.
IRISSAK [1]

Answer:

Vanessa's tax basis in cook inc.           $50,000

Explanation:

Given:

Cash = $20,000

Fair market value = $100,000

Adjusted basis = $40,000

Mortgage executed = $30,000

Now,

For the tax basis

             cash                                          $30,000

add;      Land ( adjusted basis )             $40,000

less ;     Mortgage                                  $20,000

============================================

Vanessa's tax basis in cook inc.           $50,000

============================================

6 0
3 years ago
1. What is the advantage of offering more choices for something?
Alika [10]
Know that giving customers too many choices can overwhelm and lead to fewer sales the benefit of limited sharing options
6 0
3 years ago
Other questions:
  • An automatic stabilizer: A. extracts money from the economy during recessions. B. is exemplified by a program such as unemployme
    5·1 answer
  • What type of economic system exists when individuals answer the three basic economic questions?
    15·1 answer
  • Does anyone know this?
    11·1 answer
  • Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $26,000 with an adjusted basis
    6·1 answer
  • Ellen's Antiques reported the following in its December 31, 2021, balance sheet: Equipment $ 4,000,000 Accumulated depreciation—
    7·1 answer
  • A company reports the following: Cost of goods sold $660,000 Average inventory 60,000 Determine (a) the inventory turnover and (
    5·2 answers
  • What’s the answer ?intro to business
    11·1 answer
  • Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $2.40 a share. The company has promised to
    10·1 answer
  • King, CPA, is auditing the financial statements of Cycle company, a client that has receivables from customers arising from the
    13·1 answer
  • On behalf of a client, you enter an order to write 5 abc jan 30 puts. this order is a(n):___.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!