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ExtremeBDS [4]
3 years ago
12

You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $35,000, $39,000, $80,000,

and $120,000 to you each year over the next four years, respectively. All payments will be made at the end of the year. If the appropriate interest rate is 5.7 percent, what is the value of the settlement offer today
Business
1 answer:
storchak [24]3 years ago
7 0

Answer:

The value of the settlement today =  $231,897.79  

Explanation:

The value of the settlement today is the sum of the present value (PV) of cash inflows discounted at the discount rate of 5.7 %.

Year                                                   PV

1              35,000 × 1.057^(-1)   = 33112.58

2                39,000× 1.057^(-2) = 34907.16

3.               80,000× 1.057^(-3)  = 67743.09

4                 120,000 × 1.057^(-4) =96134.94

The Pv of the total cash in flow =33,112.58  +  34,907.17  +  67,743.09  +  96,134.95  =  231,897.79  

The value of the settlement today =  $231,897.79  

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Boris works as a receptionist. He's happy with his salary, he gets along well with his coworkers and his boss, he feels no stres
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Answer: Person-Vocation fit

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Although Boris has no issue with his current company of employment, he is not satisfied with his job.

7 0
3 years ago
Consider and discuss whether there is a conflict of interest between the executive and an agency in North Carolina.
jekas [21]
RULE 1.7 CONFLICT OF INTEREST: CURRENT CLIENTS

(a) Except as provided in paragraph (b), a lawyer shall not represent a client if the representation involves a concurrent conflict of interest. A concurrent conflict of interest exists if:

(1) the representation of one client will be directly adverse to another client; or

(2) the representation of one or more clients may be materially limited by the lawyer's responsibilities to another client, a former client, or a third person, or by a personal interest of the lawyer.

(b) Notwithstanding the existence of a concurrent conflict of interest under paragraph (a), a lawyer may represent a client if:

(1) the lawyer reasonably believes that the lawyer will be able to provide competent and diligent representation to each affected client;

(2) the representation is not prohibited by law;

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4 0
2 years ago
The Morrit Corporation has $1,080,000 of debt outstanding, and it pays an interest rate of 11% annually. Morrit's annual sales a
alukav5142 [94]

Answer:

3.020

Explanation:

Morrit Corporation

interest amount = $1,080,000*.11 = $118,800

Net profit = 3% *$6,000,000= $180,000

Net profit + tax = profit before tax =

180000/.75 = 240000

Profit before tax + Interest = Earning before interest and tax

= $240,000+$118,800 = $358,800

TIE ratio= EBIT/Interest = $358,800/118,800

= 3.020

Therefore the TIE ratio is 3.020

7 0
3 years ago
Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200
irga5000 [103]

Answer:

1. 20 units

2. $600

Explanation:

1. C = 200 + 2q^{2}

MC = 4q

Price, P = $80

For maximizing profits,

Marginal cost =  Price of the commodity

4q = 80

q = 20 units

C = 200 + 2q^{2}

C = 200 + 2(20)^{2}

         = 200 + 800

         = 1,000

2. Profit = Total revenue - Total cost

             = (Price × Quantity) - TC

             = (80 × 20) - $1,000

             = $1,600 - $1,000

             = $600

3. We know that the firm in the short run will be produce at a point where total revenue is greater than the total variable cost

Average variable cost = variable cost ÷ quantity

                              =\frac{2Q^{2}}{Q}

                                     = 2Q

MC = 4Q

Here,  MC is greater than AVC at any given point.

so in the short run firm will producing short run positive profit.

4 0
3 years ago
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