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katrin [286]
3 years ago
5

g Suppose a worker with an annual discount rate of 8 percent currently resides in Chicago and is deciding whether to remain ther

e or to move to Phoenix. There are three work periods left in the life cycle. If the worker remains in Chicago, he will earn $40,000 in each of the three periods. If the worker moves to Phoenix, he will earn $43,500 in each of the three periods. What is the highest cost of migration that a worker is willing to incur and still make the move
Business
1 answer:
Annette [7]3 years ago
4 0

Answer:  $9,741.43‬

Explanation:

The highest cost of migration that the worker is willing to incur is the one that will equate the present value of the salary in Phoenix to the salary in Chicago.

Chicago = 40,000 + 40,000/(1 + 8%) + 40,000/ (1 + 8%)^2

= $111,330.59

Phoenix = 43,500 + 43,500/(1 + 8%) + 43,500/ (1 + 8%)^2

= $121,072.02

Hoghest cost of migration = 121,072.02 - 111,330.59

= $9,741.43‬

If the Cost of migration exceeds $9,741.43‬, the worker should stay in Chicago.

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Autopitch devices are made for both​ major- and​ minor-league teams to help them improve their batting averages. When set at the
aivan3 [116]

Answer:

Control limits for x_bar are between 59.076 and 60.924

Control limits for R are between 0.669 and 5.331

Explanation:

Given data:

x_bar = 60 mph

n = 10

R = 3 mph

Step 1: Factors (see table attached)

At n = 10, factors for computing control charts limits are,

A2 = Mean factor = 0.308

D3 = Lower range = 0.223

D4 = Upper range = 1.777

Step 2: Control limits for x_bar

Lower Control limit:

LCL =  x_bar - A2*R = 60 - (0.308)(3) = 60 - 0.924 = 59.076

Upper Control limit:

UCL =  x-bar + A2*R = 60 + (0.308)(3) = 60 + 0.924 = 60.924

The control limits for x_bar are between 59.076 and 60.924

Step 3: Control limits for R

Lower Control limit:

LCL = D3*R = 0.223(3) = 0.669

Upper Control limit:

UCL = D4*R = 1.777(3) = 5.331

The control limits for R are between 0.669 and 5.331

Hope this helps!

5 0
3 years ago
Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate
ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

Ke= r_f + \beta (r_m-r_f)

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

Ke= 0.03 + 1.2 (0.055)

Ke = 0.09600

<em>Now we solve for the intrinsic price using the gordon model</em>

<em>with multi-stage growth:</em>

First, we calcualte the future dividends

grow rate Dividends

0                1.25

1 0.25       1.5625

2 0.25       1.953125

3 0.25       2.44140625

4 0.25       3.051757813

4 0.03     3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic  value ofthe share:

\frac{Principal}{(1 + rate)^{time} } = PV

Present Value

1 1.5625 / (1+0.096)^1     =  1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

<u>Finally we add them and get:</u>

42.97160726

8 0
3 years ago
An independent firm that offers connections and Electronic Data Interchange (EDI) transaction forwarding services to buyers and
weeeeeb [17]

Answer:

Value Added Network

Explanation:

Value Added Network -

It is the service , which is provided by some private firm , so that the company have a secure way to share the data , is referred to as value added network , VAN .

It is the most common method for the movement of the electronic data interchange ( EDI ) , in between two firm or companies .

Hence, from the given information of the question,

The correct term is Value Added Network VAN.  

3 0
3 years ago
A company earned $2,880 in net income for October. Its net sales for October were $12,000. Its profit margin is:
snow_lady [41]

Answer:

profit margin = 23.33%

Explanation:

profit margin = net profit /  net sales

  • net profit = $2,800
  • net sales = $12,000

profit margin = $2,800 / $12,000 = 0.233333 = 23.33%

The profit margin is a profitability ratio used to compare how many cents different companies are able to make from selling $1. Different companies have different sales levels, but we can group companies by industries and then compare them in order to determine which ones are more efficient at generating income. E.g. Company A sells $100 million but only makes $2 million in profits per year (PM = 2%), and it is much less efficient than Company B that sells $10 million and makes $1 in profits (PM  = 10%). Company A's costs are too high compared to Company B's costs.  

5 0
3 years ago
In December 2019, Todd, a cash basis taxpayer, paid $1,200 fire insurance for the calendar year 2020 on a building he held for r
77julia77 [94]

Answer:

D) Todd should include the $500 in 2020 gross income in accordance with the tax benefit rule.

Explanation:

Since Todd is a cash basis taxpayer, he included the $1,500 insurance premium in his 2019 tax return. Cash basis taxpayer report revenues or expenses when the cash is received or paid, not when the service is provided.

Since he received a $500 refund in 2020, he should include it in his 2020 tax return. As a cash basis taxpayer, any money received is considered income.

5 0
3 years ago
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