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seropon [69]
3 years ago
11

Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under th

e first option, Julie would receive a lump sum of $150,000 immediately as her full retirement benefit. Under the second option, she would receive $14,000 each year for 20 years plus a lump-sum payment of $60,000 at the end of the 20-year period. Page 553 Required: If she can invest money at 12%, which option would you recommend that she accept? Use present value analysis.
Business
1 answer:
olchik [2.2K]3 years ago
8 0

Answer:

First option will be recommended.

Explanation:

To determine which option to be taken, we calculate the net present value each option generates. The option generating higher NPV should be recommended.

- Net present value of first option = Lump sum receipt = $150,000.

- Net present value of second option will be found by discounting cash flows at investing rate 12% and calculated as followed:

 +  Present value of 20 equal annual payment of $14,000 + Present value of $60,000 paid in 20 years = (14,000/12%) x [ 1 - 1.12^(-20)] + 60,000/1.12^20 = $110,792.

As net present value of the first option is higher than the second option, first option will be recommended.

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The total overhead variance is the difference between actual overhead costs and budgeted overhead costs. True False
disa [49]

The difference between the realized overheads and the estimated overheads is the total overhead cost.

<h3>What are total overhead costs?</h3>

Total overhead costs are identified as the costs related to administration, sales, marketing, and production. Before the total overhead costs are realized, a budget regarding estimated costs is prepared.

The calculation of the total overhead costs is actual overhead costs less the budgeted overhead costs.

Hence, the aforementioned statement regarding total overhead costs holds true.

Learn more about total overhead costs here:

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6 0
2 years ago
A month after your mutual aid agreement is activated for an incident, a participating jurisdiction claims that their responders
vova2212 [387]

Answer:

A. Check the Insurance and Liability section of your mutual aid agreement

Explanation:

Firstly, a mutual aid agreement is a documents that sets the rules or terms under which help or assistance can be provided between two parties, jurisdictions, NGO, etc.

From the above question, it is important that before any step is taken, it is important to check the insurance an liability section of the mutual aid agreement. This will help to ascertain if indeed you are responsible for the healthcare payment of the responders as claimed by the participating jurisdiction.

This helps to clarify who is responsible for the responders.

Cheers

4 0
3 years ago
What significance does a fire’s point of origin have regarding the investigations of a suspected arson fire?
topjm [15]
Because from where they started they will be able to find out what caused the fire
6 0
3 years ago
Read 2 more answers
Cardinal Industries purchased a generator that cost $11,000. It has an estimated life of five years and a residual value of $1,0
Nadya [2.5K]

Answer:

$2080

Explanation:

Given: Cost of generator= $11000.

           Residual value= $1000.

            Estimated life of generator= 5000 hours.

            Actual activity performed during the period= 1040 hours.

Now, finding the depreciation expense for the first year using the units-of-activity method.

Formula; Depreciation\ expense= \frac{(cost- residual\ value)}{Total\ estimated\ life\ time\ activity} \times actual\ activity\ performed

⇒ Depreciation expense= \frac{(11000-1000)}{5000} \times 1040

Opening parenthesis

⇒  Depreciation expense= \frac{10000}{5000} \times 1040

⇒  Depreciation expense=  2 \times 1040 = \$ 2080

Hence, the depreciation expense for the first year using the units-of-activity method of depreciation is $2080.

3 0
3 years ago
Because Country A has no domestic sources of wood, it imports all its wood from wood-producing countries. If the price of wood i
mars1129 [50]

Answer:

C Housing prices in Country A will increase as wood imports become more expensive.

Explanation:

Since country A imports all wood from other countries, an increase in price of wood by suppliers means that they are now expensive. Country A will be paying much more money for the same amount of supply they imported before prices rose. This will lead to housing prices to increase as a way to pass over the costs to homebuyers and tenants through rising home prices and rents respectively.

6 0
3 years ago
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