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Citrus2011 [14]
3 years ago
13

You win a scratch off lottery ticket that promises to pay an initial payment of 10,000 next year and grow at a rate of 2% foreve

r. If the discount rate is 5%, what is the present value of the lottery ticket?
Business
1 answer:
Jlenok [28]3 years ago
7 0

Answer:

PW=\frac{10,000}{0.05-0.02}\\ PW=\$333,333.333

Present value of lottery= $333,333.333

Explanation:

Given Data:

Initial Payment=$10,000

Rate at which payment grow=2%=0.02

Discount Rate=5%=0.05

Required:

Present value of lottery=?

Solution:

PW=\frac{Initial\ Payment}{r-g}

where:

r is the discount rate

g is the growth rate

PW=\frac{10,000}{0.05-0.02}\\ PW=\$333,333.333

Present value of lottery= $333,333.333

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Salaries of $4,000 are paid for a five-day week on Friday. Journalize the necessary adjusting entry of the month ends on Thursda
romanna [79]

Answer:

Debit Salaries Expense $4,000

Credit Salaries Payable $4,000

Explanation:

Preparation of the the the necessary adjusting entry of the month ends on Thursday

Based on the information given the necessary adjusting entry of the month ends on Thursday will be to Debit Salaries Expense with the amount of $4,000 and Credit Salaries Payable with the same amount of $4,000.

Debit Salaries Expense $4,000

Credit Salaries Payable $4,000

6 0
3 years ago
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $136,000.
Natasha_Volkova [10]

Answer:

$10,560

Explanation:

For computing the depreciation expense for the second year first we have to find out the depreciation per unit which is shown below:

= (Original cost - salvage value) ÷ (estimated production units)

= ($136,000 - $4,000) ÷ (120,000 units)

= ($132,000) ÷ (120,000 units)

= $1.1 per unit

Now for the second year, the depreciation expense would be

= Production units in second year × depreciation per unit

= 9,600 units × $1.1

= $10,560

6 0
3 years ago
The​ strategy-evaluation process includes three basic activities. Which​ activity(s) below is not one of the​ three?
defon

Answer:

The answer is C. Develop a clear vision and mission.

Explanation:

The strategy evaluation process is a process that involves the analysis of a strategic plan and the assessment of how well an objective has been achieved as described in the strategy.

The key steps in strategy evaluation are:

  • examining the underlying bases of a firm's strategies.
  • comparing actual results with expected results.
  • taking remedial/corrective actions.

Evaluation helps in ensuring that an organization's strategy and it's implementation meets the objectives of the organization.

8 0
2 years ago
What software is essential for any company doing business on the Web to constantly monitor the activity on a company's network s
storchak [24]

Answer:

The correct answer is: Intrusion detection software.

Explanation:

Intrusion Detection Software or IDS are vital for companies moreover for entities with web-based operations. IDS are specially programmed to detect different types of attacks in the attempt of breaking into the firm's security system and data. There are four (4) types of IDS: <em>Network intrusion detection system (NIDS), Host-based intrusion detection system (HIDS), Perimeter Intrusion Detection System (PIDS), </em>and<em> VM based Intrusion Detection System (VMIDS).</em>

6 0
2 years ago
Blossom Excavating Inc. is purchasing a bulldozer. The equipment has a price of $107,400. The manufacturer has offered a payment
Maru [420]

Answer:

$67,600

Explanation:

First, find the interest rate on the loan.

Pv = $107,400

Pmt = - $17,500

n = 10

P/Yr = 1

Fv = $0

i = ?

Using a Financial Calculator to input the values as show, the interest rate (i) will be 10.0282 or 10 %

Use the Amort Function to start populating an amortization schedule.

<u>To find the total Interest [Financial Calculator]:</u>

Enter 1 INPUT 10 + SHIFT + AMORT

We get = $67,600 as the total Interest.

3 0
2 years ago
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