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Nastasia [14]
3 years ago
9

You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangement

s. You can have $72,000 per year for the next two years, or you can have $61,000 per year for the next two years, along with a $17,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month.If the interest rate is 9 percent compounded monthly, what is the PV for both the options? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Fed [463]3 years ago
8 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Option 1:

You can have $72,000 per year for the next two years

Option 2:

You can have $61,000 per year for the next two years, along with a $17,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month.

The interest rate is 9 percent compounded monthly.

To calculate the present value, we need to use the following formula:

PV= FV/(1+i)^n

First, we need to calculate the final value on both options:

FV= PV*(1+i)^n

For each year

Option 1:

i= 0.09/12= 0.0075

n= 12

Year 1= 72,000*1.0075^24= 86,141.77

Year 2= 72,000*1.0075^12= 78,754.09

Total= 164,895.86

PV= 164,895.86/1.0075^24= 137,825.14

Option 2:

Year 1= 61,000*1.0075^24= 72,981.23

Year 2= 61,000*1.0075^12= 66,722.22

Total= 139,703.45

PV= 139,703.45/ 1.0075^24= 116,768.53 + 17,000= 133,768.53

Option 1 is more profitable.  

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87 because he

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3 years ago
Besides the actual mortgage payment, which also factors into the monthly payment on a home?
Pie
Aside from the actual mortgage payments, you also pay for your monthly property taxes, homeowner's insurance, and home repairs.

Sometimes homeowners also pay for monthly dues to their homeowners association. This monthly dues include water, sewer, garbage, and maintenance of other amenities like clubhouse, pool, and tennis courts. 
5 0
3 years ago
Read 2 more answers
Adong's Fishing Products is analyzing the performance of its cash management. On average, the firm holds inventory for 65 days,
tatuchka [14]

Answer:

A. $45

B. $80

C. $8,167

Explanation:

(a) Calculation to determine the firm's cash conversion cycle

Cash conversion cycle=$65 +$15 – $35

Cash conversion cycle=$45

Therefore the firm's cash conversion cycle is $45

(b) Calculation to determine the firm's operating cycle

Operating cycle =$65 +$15

Operating cycle=$80

Therefore the firm's operating cycle is $80

(c) Calculation to determine the daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days

First step is to calculate the Daily expenditure

Daily expenditure =$1,960,000/360

Daily expenditure=$5,444.44

Now let determine the Annual savings

Annual savings =$5,444.44 *15*0.10

Annual savings=$8,167

Therefore the daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days will be $8,167

5 0
3 years ago
Which of the following is not a measure of the reliability of the supply chain?
Pachacha [2.7K]

Answer:

Option B, Supply chain response time

Explanation:

The reliability of the supply chain represents the amount of good performance of the distribution chain. The highest priorities for supply chain practitioners are rising trust, decreased inventory and market readiness.

The overall response time for the supply chain is the capacity of the supply chain to react to market demand rapidly. When a market demand transition is observed, the supply chain has to stabilise.  

The response time of the supply chains is sometimes characterised by minimal changes in market demand.

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Victoria’s 2021 tax return was due on April 15, 2022, but she did not file it until June 12, 2022. Victoria did not file an exte
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Based on the information the amount of penalty that Victoria will have to pay is $850.

<h3>Penalty amount:</h3>

Using this formula

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Where:

Tax return=$8,500

Tax rate=5%

Let plug in the formula

Penalty amount=( $8,500 x 5%) x 2

Penalty amount=$425×2

Penalty amount=$850

Inconclusion the amount of penalty that Victoria will have to pay is $850.

Learn more about penalty here:brainly.com/question/1178265

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