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krek1111 [17]
3 years ago
11

6. Twins Barbara and Mary are both age 27. Beginning at age 27, Barbara invests $2,000 per year for 10 years and then never sets

aside another penny. Mary waits 10 years and then invests $2,000 per year for the next 30 years. Assuming they both earn 7%, how much will each twin have at age 67? What is the difference between how much each will have, and how do you explain the difference?
Business
1 answer:
Dmitriy789 [7]3 years ago
4 0

Answer:

Barbara will have $210,349

Mary will have $188,922

Explanation:

Total time of investment is 40 years = age 67 - age 27

After 10 years, Barbara will have  $27,633 (this figure used "FV" calculation in excel = FV(7%,10,2000)

Then Barbara put all $27,633 in next 30 years then she will have $210,349 = 27,633 x (1+7%)^30

Mary didn't now invest in first 10 years, but then  invests $2,000 per year for the next 30 years, so she will have $188,922 = FV(7%,30,2000)

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Explanation:

a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=150,000/1.12+210,000/1.12^2+360,000/1.12^3

=557580.18

NPV=Present value of inflows-Present value of outflows                  

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b.Hence since net present value is positive;factory is a good investment

(Yes)

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3 years ago
Using government regulations to limit the import of goods and services is called
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protectionism

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The country could overtax import products such as manufactured products in order to protect its own products and industries. This is very common in trade markets. Nowadays, through the globalization and China´s high development protectionism is ending.

4 0
3 years ago
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Answer:

Stockholders

Explanation:

Stockholders are the owners of a company.  As owners , stockholders have voting rights in the company.  Shareholder elects directors who represent them on the board of directors. Each share is equivalent to one vote.  The board members recruit top management of the company. The board provides policy guidelines, makes critical decisions, and supervises senior management.

By electing board members, shareholders influence the management of the business. Should the stockholders be unhappy with the way the company is being managed, they can vote out the current director and elect new ones. The new directors then appoint fresh managers. In this way, shareholders maintain control of the assets of the company and its assets.

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3 years ago
Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would le
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Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts

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Inkal Co. was formed on January 1, 2017 as a wholly owned subsidiary of a US corporation. Sinkal's functional currency was the s
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Answer:

It would decrease the net assets by $60,800

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