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Blababa [14]
4 years ago
13

Civil engineering consulting fi rms that provide services to outlying communities are vulnerable to a number of factors that aff

ect the fi nancial condition of the communities, such as bond issues and real estate developments. A small consulting fi rm entered into a fi xed-price contract with a large developer, resulting in a stable income of $260,000 per year in years 1 through 3. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $190,000 per year for 2 more years. Determine the present worth of the two contracts at an interest rate of 10% per year.
Business
1 answer:
Evgen [1.6K]4 years ago
7 0

Answer:

$894,336

Explanation:

The computation of the present worth of two contracts is shown below:

= (Stable income × PVIFA at 3 years for 10%) + (Signed amount × PVIFA at 2 years for 10%) × PVF at 3 years for 10%

= ($260,000 × 2.4869 ) + ($190,000 × 1.7355 ) × 0.751314801

= $646,594 + $329,745  × 0.751314801

= $894,336

Refer to the PVIFA table and the discount factor table so that the correct amount could come

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David borrowed $120,000 for his business to be repaid in six equal annual installment. The lender charges 6.5 percent interest o
kherson [118]

Answer: c, it is the sixth year

Explanation:

4 0
3 years ago
The market value of​ Fords' equity, preferred​ stock, and debt are $ 7 ​billion, $ 2 ​billion, and $ 13 ​billion, respectively.
Alisiya [41]

Answer: 9.48%

Explanation:

Given Data

Debts ;

$7 billion

$2 billion

$13 billion

Beta of Fords stock = Beta = 1.50

Market risk premium = Rp = 8.0%

Risk free rate of interest = Rf = 4.0%

Equity rate = 1.7

Market risk rate = 0.8

Risk free rate = 0.03

Therefore;

Cost of Equity ( Re ) = Risk free rate + equity rate × market risk premium

= 0.03 + (1.7 × 0.8)

= 0.166

Preferred Stock Cost ( PSC)= Dividend ÷ stock price

= 4 ÷ 30

= 0.1333

Total debt = 13 + 6 + 2 = 21 billion

D% = 13 billion ÷ 21 billion

      = 0.619

E% = 6 billion ÷ 21 billion

     = 0.286

P% = 2 billion ÷ 21 billion

     = 0.095

RD = debt capital at 8% maturity rate

Tc= 30%

Rwac =(w/ preferred stock)

= Re × E% + PSC × P% + Rd ( 1- Tc) D%

Rwac = (0.166)(0.286) + (0.1333)(0.095) + (0.08)(1- 0.3)*(0.619)

= 0.094803 * 100

= 9.48%

At 30% tax rate Ford weighted average cost is 9.48%

4 0
3 years ago
_____ means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically
rosijanka [135]

Answer:

The correct answer is letter "A": Ethical leadership.

Explanation:

Ethical leadership implies managers of an organization respecting the norms and values necessary to develop a healthy atmosphere at work. Top executives are in charge of promoting respect among coworkers, inspire trust by their actions, honesty at the moment of providing information to subordinates, consideration in front of problems among employees, and fairness to solve issues impartially.

5 0
3 years ago
Sean was recently added to the marketing team at Axon International. He will be starting at the company in two weeks. Sean has h
Sergio [31]

Answer:

Lone wolf.

Explanation:

A lone wolf is someone that works and exists independently rather than with others as a member of a team. Is typically introverted, self-motivated, and is extremely focused on completing her/his own tasks.They have a strong preference for independence and doing most things on their own. Loners or “hermits” have a reputation of being biased. As a rule, they are not entrusted with large, profitable projects. At least not often.

By contrast, the latter case is a team player who needs the interaction of others to assist their own personal performance.

6 0
3 years ago
Compare and contrast the customer involvement of McDonald’s and a cook it yourself place like the Japanese barbeque joint Gyu-Ka
Archy [21]

Answer:

There are several strategic and operational differences between McDonald's and Gyu-Kaku, starting with McDonald's, which is a fast food chain present all over the world, where there is a standardized production line of hamburgers that can be consumed quickly and with the same standard and ingredients around the world. Therefore, customer involvement at McDonald's is small, as the chain's focus is fast, cheap and standardized meals.

At Gyu-Kaku, the strategy is the customization of dishes, where the customer is more involved in being able to cook their own meal, which generates an experience and a differentiation of processes in relation to McDonald's, for example, whose focus is massification , and Gyu-Kaku focuses on customization.

7 0
3 years ago
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