So in this case, you would need to find the present value (PV) of the monthly payments. With the information given, you would have a PV= 195,413.08, which is less than the lump sum payment. In this case, you would take the 1 time payment.
Another way to look at this is to calculate the future value (FV) of both payouts. For the lump sum payment, you would assume the same interest rate (6%) and at the end of the same 20 years period, your investment would be worth 662,040.90 while the monthly payment option would be worth 646,857.25
Answer:
a. True
Explanation:
The Power-Distance Index refers to the relationship and interaction between a high ranking individual and a low ranking individual. The index depends on how a low ranking individual reacts to a high ranking individual.
It measures the degree where the members of a society or group accepts the hierarchy of the power and the authority.
Thus according to the high power distance index score, individuals with high power are entitled to number of privileges in a country or in society.
Hence the answer is TRUE.
Answer:
B. represents the sum of the quantities demanded by all the buyers at each price of the good
Explanation:
The market demand curve is found by horizontally adding the individual demand curves.
The market demand curve slopes downward.
I hope my answer helps you
Answer:
b) Initiator
Explanation:
As Martha owns a chocolate factory where each chocolate treat is made by hand. Her assistant Daniel feels that the rate of production can be dramatically increased if the company switched to an automated assembly line to manufacture the chocolates. When he proposes this idea to Martha, she agrees and begins evaluating different vendors who might provide the equipment to the company. Daniel has performed the role of initiator in this purchasing process. In purchasing process, there are many people involved:
Initiator - Influencer - Decider - Buyer - User
Initiator starts the idea, presents the idea of buying something which then is influenced and enhanced by the influencer, and then actual decider decides the buying product and is being bought then and further used by someone. These all persons can be the same person and or either one single person can perform all of these roles but here in this case Daniel has performed the role of initiator as he has given the advise of automation to Martha.
Explanation:
a. The journal entries are as follows
On June 15
Retained earning A/c Dr $60,000
To Dividend payable $60,000
(Being cash dividend declared)
On June 30
No journal entry is required
On June 10
Dividend payable $60,000
To Cash $60,000
(Being the dividend is paid)
On Dec 15
Retained earning A/c Dr $64,000
To Dividend payable $64,000
(Being cash dividend declared)
On Dec 31
No journal entry is required
b. Now the dividend is reported on the retained earning statements in a negative sign whereas the dividend payable is reported on the current liabilities of the balance sheet
