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IceJOKER [234]
3 years ago
11

Larry’s Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $32,000 per year forever.

Assume the required return on this investment is 7.2 percent.
How much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Harman [31]3 years ago
4 0

Answer:

$444,444.44

Explanation:

Larry's life insurance corporation is trying to sell an investment policy that will pay you and your heirs a total amount of $32,000 per year

The required return on this investment is 7.2%

= 7.2/100

= 0.072

Since the cash flow is a perpetuity then, the amount that will be paid for the policy can be calculated as follows

PV= C/r

= $32,000/0.072

= $444,444.44

Hence the amount of money that will be paid for the policy is $444,444.44

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What will be the end result for the taxpayer who filed his federal income tax
Hunter-Best [27]

Answer: he will owe $135

Explanation:

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2 years ago
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Gonzales Corporation generated free cash flow of $86 million this year. For the next two years, the company's free cash flow is
Viktor [21]

Answer:

$12.49

Explanation:

The computation of the expected current price is shown below:

But before that first we have to determine the current firm value which is

Current firm value = ($86 million ×1.10^1) ÷ 1.11^1 + ($86 million × 1.10^2) ÷ 1.11^2 + {($86 million × 1.10^2 × 1.04) ÷ (0.11 - 0.04)} ÷ 1.11^2

= $1,424.48 million

Now

Expected current share price is

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= $12.49

7 0
3 years ago
According to the value in diversity problem-solving approach A. surface-level diversity is less likely to lead to team cohesion
marshall27 [118]

Answer:

The correct answer is option E (diversity in teams is beneficial because it provides for a larger pool of knowledge from which a team can draw as it carries out its work).

Explanation:

Diversity in an organization/team is broad in its definition as it describes a group of individuals who are from different backgrounds, races, ages, education working for a common goal.

When we talk about surface-level diversity, then we are pointing at those visible differences such as sex, age. While Deep-level diversity is those characters that are not visible such as beliefs, likes, dislikes, temperament.

Diversity in teams is beneficial because team members would have diverse backgrounds, experiences, problem-solving capacities, exposures, bringing diverse solutions to the team which leads to good team performance, and a quick, better solution to problems.

3 0
3 years ago
An expense account normally has a ___________ balance.<br><br> A. Debit<br> B. Credit
swat32

Answer:

An expense account normally has a debit balance.

8 0
2 years ago
Wood Dreams makes hand crafted furniture in its retail stores. The furniture maker has recently installed a new assembly process
Sophie [7]

Answer: 204.76%

Explanation:

In the earlier scenario, furniture maker manufactured 47 (42 non defective) pieces per 5 laborers working 8 hours day.

Thus, the productivity in terms of units per labor hour is as follows:

= \frac{42}{8\times5}

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= \frac{128}{8\times5}

= 3.2

Thus change in productivity would be calculated as:

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= 2.047 × 100

= 204.76%

Thus, the productivity of non defective parts would increase by 204.76%.

4 0
3 years ago
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