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Art [367]
3 years ago
8

What is the value today of a money machine that will pay $4,010.00 per year for 13.00 years?

Business
1 answer:
Maurinko [17]3 years ago
3 0

Answer:

The present value of the machine is $35499

Explanation:

The annual amount or annuity amount = $4010 per year.

Total number of years = 13 years

Here, the interest rate is not given so we just assume the interest rate = 6% per annum.

Since we have a total number of years and annual payment that occurs for 13 years. We are required to find the present value of the machine. So use the formula to find the present value of the annuity.

The present value of machine = (Annuity amount x (1 – (1+r)^-n) ) / r

The present value of machine = (4010(1 – (1+6%)^-13) ) / 6%

The present value of machine = $35499

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You want to invest $50,000 in a portfolio with a beta of no more than 1.4 and an expected return of 12.4%. Bay Corp. has a beta
IRISSAK [1]

Answer:

Assume the weight to be invested in Bay Corp is x. That means (1 - x) will be the weight for City Inc. The expression for the expected return will be;

(x * 11.2%) + ( (1 - x) * 14.8%) = 12.4%

0.112x + 0.148 - 0.148x = 0.124

-0.036x = -0.024

x = 0.67

Portfolio beta is;

= 0.67 * 1.2 + ( 1 - 0.67) * 1.8

= 1.398 so beta condition is satisfied.

Amount in Bay Corp.;

= 0.67 * 50,000

= $33,500

Amount in City Inc.;

= 50,000 - 33,500

= $16,500

8 0
3 years ago
Grays Company has inventory of 16 units at a cost of $11 each on August 1. On August 3, it purchased 26 units at $10 each. 18 un
Lelechka [254]

Answer:

Cost of goods sold is $196

Explanation:

Using FIFO inventory sold are valued at the price of the most earliest stock in inventory.

The 16 units would be valued at $11 per one while the remaining 2 units would be valued at price of the purchase made on August 3 which cost $10 each

costs of goods sold=($11*16)+($10*2)

                                =$176+$20=$196

The costs of goods sold would be $196 if FIFO method of inventory valuation is used

6 0
3 years ago
midshipmen Company borrows $17,500 from Falcon Company on July 1, 2021. Midshipmen repays the amount borrowed and pays interest
irina [24]

Answer:

                                        Debit                            Credit

July 2021

Cash                                 17,500

Loan payable                                                        17,500

June 30, 2022

Loan Payable                   17,500

Interest payable                 2,100

Cash                                                                     19,600

Adjusting Entry's

                                         Debit                                Credit

Interest expense               1050

Interest Payable                                                            1050

Explanation:

Interest for the year = 0.12*17500=2100

Interest expense 2021= 6/12*2100= 1050

6 0
3 years ago
Read 2 more answers
Al Smith, who lives in Territory 5, carries 10/20/5 compulsory liability insurance along with optional collision that has a $300
photoshop1234 [79]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

5 0
3 years ago
Anna-Marie senses that one of her employees feels excluded from the rest of the group. She is surprised by this, as she believes
cricket20 [7]

The best action that Anna-Marie should take next is <u>A- She should talk</u> to the employee to understand their perspective.

Talking to the employee will reveal if they are out-group members and enable Anna-Marie to understand their views.

<h3>Who is an out-group member?</h3>

An out-group member is an individual in an organization who does not identify themselves as part of the group or unit.

An out-group member does not pursue the same goals as other group members and most times feels excluded from the group.

<h3>Answer Options:</h3>

A- She should talk to the employee to understand their perspective.

B- She should redistribute the company policy describing inclusion expectations.

C- No action is required; she is already acting ethically.

D- She should start documenting her efforts at inclusion.

Thus, the best action that Anna-Marie should take next is <u>A- She should talk</u> to the employee to understand their perspective.

Learn more about out-group members at brainly.com/question/7548841

3 0
1 year ago
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