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kirza4 [7]
3 years ago
11

Suppose two athletes each sign 10-year contracts for $80 million. In one case, we’re told that the $80 million will be paid in 1

0 equal installments. In the other case, we’re told that the $80 million will be paid in 10 installments, but the installments will increase by 5 percent per year. Who got the better deal?
Business
1 answer:
marusya05 [52]3 years ago
7 0

Answer:

The athlete with equal installments got the better deal.

Explanation:

Two athletes each sign 10-year contracts for $80 million.

In one case, we’re told that the $80 million will be paid in 10 equal installments.

In the other case, the $80 million will be paid in 10 installments, but the installments will increase by 5 percent per year.

The one with equal installments will get $8 million every year.

But the one with increasing installments will get smaller payments initially as his payments were to be increased by 5% each year.

Though the total value of both the annuities will remain the same.

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It’s basically manipulate
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Bank Robbery. Victor robbed Safe Bank of a significant sum of cash. Safe Bank offered a reward of $10,000 for anyone who capture
algol13

Answer: E

Explanation: Ted or Ursula didn't get the reward because Ursula was also a suspect. during the course of Ted investigation information gotten from Ursula interrogating helped in apprehending him. Ted was performing his duties as an officer of the law, Ursula was a suspect so couldn't claim the reward too.

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3 years ago
Janet and Megan are debating the use of student discounts by local stores near school. Janet argues, "When stores offer discount
Ilya [14]

Answer:

Antonio

Explanation:

In simple words, Antonio has a lot of support among economists. Price discrimination occurs when a vendor is able to split clients into groupings or segregate a marketplace into two categories so that they may charge varying charges to that same two groups. It has hardly anything to deal with the customers' age.

Thus, Antonio is correct with his views.

7 0
3 years ago
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of
ludmilkaskok [199]

Answer:

Decrease by $132,100

Explanation:

Computation of the given data are as follow:-

We can calculate the  Operating Income by using following formula:-

Fixed Cost = Fixed Cost * Dropped Rate

= $193,000 * 30/100

= $57,900

So, Operating Income = Sales - Variable Cost - Fixed Cost  

= $,1050,000 - $860,000 - $57,900

= $132,100

According to the Analysis, the operating income will be decrease by $132,100 if the business segment is eliminated.

8 0
3 years ago
On December 30, Year 3, Ames Co. leased equipment under a finance lease for 10 years. It contracted to pay $40,000 annual rent o
liraira [26]

Answer:

Ames should reduce the lease liability by $17,000

Explanation:

There are two components of lease payment:

  1. Interest expense
  2. Amount paid against lease obligation.

Annual Lease = $40,000

Carrying amount at the beginning of the period = ( $270,000 – $40,000 ) = $230,000

Interest is calculated by multiplying the carrying amount with annual interest rate.

Interest expense  = $230,000 x 10% = $23,000

Reduction in liability is the net of Lease payment and Interest expense for the period.

Reduction in lease liability = $40,000 - $23,000 = $17,000

6 0
3 years ago
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