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mezya [45]
3 years ago
13

John Roberts is 55 years old and has been asked to accept early retirement from his company. The company has offered John three

alternative compensation packages to induce John to retire: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1.$180,000 cash payment to be paid immediately.2. A 20-year annuity of $16,000 beginning immediately.3. A 10-year annuity of $50,000 beginning at age 65. Required:Determine the present value, assuming that he is able to invest funds at a 7% rate, which alternative should John choose? (Round your final answers to nearest whole dollar amount.)
Business
1 answer:
MArishka [77]3 years ago
5 0

Answer:

Answer is on the chegg link i provided

Explanation:

https://www.chegg.com/homework-help/john-roberts-55-years-old-asked-accept-early-retirement-comp-chapter-6-problem-9p-solution-9780078025327-exc

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The corporate charter of Luney Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first
kakasveta [241]

Answer:

Luney Corporation is authorized to sell 100000 shares

luney has issued =  70000 shares

luney has shares outstanding 63000

Explanation:

given data

maximum shares of common stock = 100,000

sold shares =  70,000

reacquired = 7,000

solution

we know here 100000 shares are mention in charter of the company

so Luney Corporation is authorized to sell 100000 shares

and  luney has issued =  70000 shares

so here  

we know that

luney has shares outstanding  = 70000 - 7000

luney has shares outstanding 63000

7 0
3 years ago
Round 784.967 to the nearest whole number
ella [17]
784.967 rounded to the nearest whole number is 785
5 0
3 years ago
Read 2 more answers
At the present time, Water and Power Company (WPC) has 10-year noncallable bonds with a face value of $1,000 that are outstandin
ArbitrLikvidat [17]

Answer:

d. 2.94%

Explanation:

First, Calculate the Yield to maturity of the bond using the following formula

Use the following formula to calculate the YTM

P = [ C x ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Where

F = Face value = $1,000

P = Price = $1,495.56

C = Coupon payment = Face value x Coupon rate = $1,000 x 10% = $100

n = numbers of periods = Numbers of years to maturity = 10 years

r = YTM = ?

Placing values in the formula

$1,495.56 = [ $100 x ( 1 - ( 1 + r )^-10 ) / r ] + [ $1,000 / ( 1 + r )^10 ]

r = 3.916%

Now calculate the after-tax cost of debt

After-tax cost of debt = YTM x ( 1 - Tax rate )

After-tax cost of debt = 3.916% x ( 1 - 25% )

After-tax cost of debt = 2.937%

After-tax cost of debt = 2.94%

4 0
2 years ago
Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing ov
Ratling [72]

Answer:

a) The materials price variance 19026.33 unfav

b) Material Quantity Variance= $ 267 Unfav

c) Direct Labor Rate variance= $ 6127 Unfav

d) Direct labor Efficiency variance= 7710 Fav

e) Variable Overhead Rate Variance= 13099 fav

f) Variable Overhead Efficiency Variance= 3256.25  unfav

Explanation:

<em>First We find the missing figures such as standard quantity ,hours allowed , actual price, rate. Then we list the formulae to use. After that we put in the values of the amounts in the formulae to get the results. Unfavorable variances are those in which the actual quantities are greater than the standard quantities or input .</em>

Kropf Inc.

Given Standards

Direct materials 9.30 liters $ 8.90 per liter

<em>Standard Quantity allowed = 9.3 * 11500= 106950 Litres </em>

Direct labor 0.70 hours $ 25.70 per hour

Variable manufacturing overhead 0.70 hours $ 7.80 per hour

<em>Standard Hours Allowed </em>= $ 0.7 *11500= 8050

Actual Results Given

Actual output 11,500 units

Raw materials purchased 107,900 liters

Actual cost of raw materials purchased $ 979,500

<em>Actual Price</em><em>=</em> Cost/ Purchases=  $ 979,500/107,900 = $9.08

Raw materials used in production 106,980 liters

Actual direct labor-hours 7,750 hours

Actual direct labor cost $ 205,302

<em>Actual Rate</em><em>=</em>$ 205,302 / 7,750 = $ 26.49

Actual variable overhead cost $ 55,414

Actual Overhead Rate= $ 55,414/7,750 = $ 7.15

<u>Formulae to use </u>

1)The materials price variance = (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)

2) Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)

3) Direct Labor Rate variance= (actual hours* actual rate)- (actual hours * standard rate)

4) Direct labor Efficiency variance= (actual hours* standard rate)- (standard hours * standard rate)

5) Variable Overhead Rate Variance= Actual Variable Overhead- Standard Variable Overhead

6)Variable Overhead Efficiency Variance=( Actual Hours * Standard Variable Overhead Rate)-( Standard Hours * Standard Variable Overhead Rate)

<u>Working</u>

1)The materials price variance = (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)

The materials price variance = ( $9.08*106,980 )- ($ 8.90 *106,980)

The materials price variance = (971148.38)- (952122)=19026.33 unfav

2) Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)

Material Quantity Variance=($ 8.90 *106,980)-($ 8.90 *106,950)= $ 267 Unfav

3) Direct Labor Rate variance= (actual hours* actual rate)- (actual hours * standard rate)

Direct Labor Rate variance= ( 7,750*$ 26.49)- (7,750*$ 25.70)= $ 6127 Unfav

4) Direct labor Efficiency variance= (actual hours* standard rate)- (standard hours * standard rate)

Direct labor Efficiency variance=(7,750*$ 25.70)-(8050*$ 25.70)= 7710 Fav

5) Variable Overhead Rate Variance= Actual Variable Overhead- Standard Variable Overhead

Variable Overhead Rate Variance=$ 55,414-( Actual Hours * Standard Variable Overhead Rate)

Variable Overhead Rate Variance=$ 55,414-(7,750*0.70 * $ 7.80)

Variable Overhead Rate Variance=$ 55,414- 42315= 13099 fav

6)Variable Overhead Efficiency Variance=( Actual Hours * Standard Variable Overhead Rate)-( Standard Hours * Standard Variable Overhead Rate)

Variable Overhead Efficiency Variance= (7,750*0.70 * $ 7.80)- (7,750*0.70 * $ 7.15)=42315- 38788.15= 3256.25  unfav

8 0
3 years ago
The managers at Movo Automobile Inc. want to diversify their business by acquiring a consumer electronics company. This acquisit
quester [9]

Answer:

C.principal-agent problems.

Explanation:

The acquisition of Movo Automobile is a typical example of AGENCY COST. Under the Agency cost theory, managers are agents of shareholders who represents principal in the principal - agent problem.

Agency cost is a situation where agents become selfish and pursue strategies and policies that will promote the self interest of agents and cause dissatisfaction to principals.

4 0
2 years ago
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