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Deffense [45]
3 years ago
8

Your grandparents would like to establish a trust fund that will pay you and your heirs $215,000 per year forever with the first

payment one year from today. If the trust fund earns an annual return of 4.2 percent, how much must your grandparents deposit today?
Business
1 answer:
Tju [1.3M]3 years ago
7 0

Answer:

They should invest $5,119,047.619 today.

Explanation:

The trust fund will pay a fixed amount forever thus it is a perpetuity. The value of perpetuity or Price of perpetuity is the amount that the perpetuity is worth in today's terms based on the cash flows it will generate in future.

The formula for the value or price of perpetuity is,

P0 or V = Cash Flow / r

Thus,

P0 or V = 215000 / 0.04   =  $5,119,047.619

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Sissie owns two items of business equipment. Both were purchased in 2015 for $100,000, both have a 7-year MACRS recovery period,
MariettaO [177]

Answer:

Sissie must report both operations separately, even though the gain in one of them does offset the loss on the other:

  • selling of equipment A: reported gain (increased ordinary income) of $22,510 ($60,000 - $37,490)
  • selling of equipment B: reported ordinary loss of $14,490 ($23,000 - $37,490)

The effect of both transactions is a net gain of $8,020 that will increase Sissie's ordinary income.

Explanation:

Both assets are § 1231 assets, and § 1245 allows deprecation recapture on the sale of equipment A, so the gain must be considered ordinary income. The loss on the sale of equipment B is a § 1231 loss which must be treated as an ordinary loss.

8 0
3 years ago
The next wave of marketable innovations may involve new ways to produce and conserve energy. If we can turn new technology into
Whitepunk [10]

Answer:

The correct answer is a) Gross domestic product (GDP)

Explanation:

Gross domestic product (GDP) is a fiscal measure of the market value of all the final goods and services produced annually. There are two types of GDP, nominal and Real.

8 0
3 years ago
An organization's internal stakeholders consist of Multiple Choice a.the board of directors, customers, and local government.b.t
Andrej [43]

The board of directors, employees, and owners are an organization's internal stakeholders.

<h3>What is the role of internal stakeholders?</h3>

People who have a direct interest in a company, such as through employment, ownership, or investment, are said to be internal stakeholders. External stakeholders are people who do not directly work for a company but are nonetheless impacted in some way by the decisions and results of the enterprise. They participate in the company's management and have voting rights.

They are both members of the board of directors and the company's largest investors. As a result, they possess all the authority that other members of higher-level management do and are able to alter the course of the business. According to research, employees are by far the most significant stakeholder group for organizations, coming out ahead of clients, vendors, neighborhood associations, and shareholders by a wide margin.

To learn more about internal stakeholders, visit:

brainly.com/question/4414143

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7 0
1 year ago
A buyer has decided to offer $335,000 for a home that she really likes. The bank will loan her 80% of the purchase price for 30
RUDIKE [14]

Answer:

We have:

Amount of principal = $268,000

Interest payment = $1,522.24

Explanation:

These can be calculated as follows:

Loan principal = Cost of the home * Percentage to borrow = $335,000 * 80% = $268,000

Interest payment = (Loan principal / $1,000) * $5.68 = ($268,000 / $1,000) * $5.68 = 268 * $5.68 = $1,522.24

Therefore, we have:

Amount of principal = $268,000

Interest payment = $1,522.24

5 0
3 years ago
On January 1, Mumford purchased 10% of Heller's common stock. On September 1, it purchased another 30% of Heller's common stock.
professor190 [17]

10% of Heller's income for January 1 to August 31, plus 40% of Heller's income for the remainder of the year.

Explanation:

In spite of a retrospective strategy, Mumford puts the 10 per cent owned by the creditor firm together with the 30% purchased on Sep 1 which accounts for 40 per cent of the sales of Heller.

Retrospective, the committee focuses on the team members ' collaboration and looks for ways to enhance the process, based on the lessons learned in the recent work .

It is time to reflect on past events and experiences – outside the daily routine.

Retrospective thinking occurs whenever one remembers something from the past, but one can also think retrospectively about hypothetical future events, by imagining that the event has already transpired and then working backward in the mind from the future toward the present.

5 0
3 years ago
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