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Licemer1 [7]
3 years ago
14

Luis is going to receive $20,000 six years from now. Soo Lee is going to receive $20,000 nine years from now. Which one of the f

ollowing statements is correct if both Luis and Soo Lee apply a 7 percent discount rate to these amounts?
A. The present values of Luis and Soo Lee's money are equal.
B. In future dollars, Soo Lee's money is worth more than Luis's money.
C. In today's dollars, Luis's money is worth more than Soo Lee's.
D. Twenty years from now, the value of Luis's money will be equal to the value of Soo Lee's money.
E. Soo Lee's money is worth more than Luis's money given the 7 percent discount rate.
Business
1 answer:
irakobra [83]3 years ago
5 0

Answer:

The answer is C. In today's dollars, Luis's money is worth more than Soo Lee's.

Explanation:

Present value for Luis= C(1+i)^-n= 20000(1.07)^-6 = $13326.84

Present value for Soo Lee = C(1+i)^-n= 20000(1.07)^-9= $10878.67

Present value for Luis is greater than that of Soo Lee.

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Stickley furniture
solniwko [45]

Answer:

1. Repetitive and continuous

2. Call

3. How, what, and when

4. Material problem

Explanation:

The work of Stickley furniture is described as repetitive and continuous. This is because, the company will continue to be producing the same kind of furniture continuous, This will be so because, furniture have a limited number of make. For example, furniture are chairs, tables, cabinet, stool and shelf. These things will be continually produced by the company.

The company will be able to keep track of job status and location through call.

Meanwhile, when the company received an order. The questions they will ask are, what type of furniture they want? When they want it?, How they want it delivered, is it in batches? Where they want it delivered?

7 0
3 years ago
Add the following and reduce to lowest terms 3/9+3/9
mel-nik [20]

Steps to solve:

3/9 + 3/9

~Add

6/9

~Simplify

2/3

Best of Luck!

5 0
3 years ago
Read 2 more answers
On January 1, 2018, Green Corporation purchased 30% of the outstanding voting common stock of Gold Company for $300,850. The boo
tatuchka [14]

Answer:

Investment on Gold Company 305,565

Goodwill                                      20,360

Carrying value                          325,925

Explanation:

<em>Because our current control, we have to use the equity valuation</em>

<em>the net income increased our investment and the cash dividends decreased.</em>

beginning book value 275,400

+ 30% net income

30% of 125,600 = 37,680

-30% cash dividends

30% of 25,050 = (7,515)

ending I<u>nvestment on Gold Company 305,565</u>

<u />

<em>The goodwill will be amortized over 5 years using straight-line method</em>

<u>Goodwill</u>

300,850 - 275,400 = 25,450

life 5 years

25,450/5 = 5,090

amortization                (5,090)

<u>Total                            20,360</u>

7 0
2 years ago
Which one of the following is NOT one of the 5 generic types of competitive strategy? Select one: a. Low-cost provider strategy
irina1246 [14]

Answer:

d. Market share dominator strategy

Explanation:

  • A competitive strategy is a long term plan of the particular company in order to gains a competitive advantage over the competitions in the industry and to aim towards the generation of a more superiors investment.
  • And is the attribute to the performance and the availability pf the natural resources and a skilled labor force.
3 0
3 years ago
An insurance company has offered your friend the choice of $45,000 per year for 15 years, with the first payment being made toda
TiliK225 [7]

Answer:

$427,011.92

Explanation:

We use the present value formula i.e to be shown in the attached spreadsheet

Given that,  

Future value = $0

Rate of interest = 7.5%

NPER = 15 years

PMT = $45,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

And, in type we write the 1 instead of 0

So, after solving this, the present value is $427,011.92

8 0
3 years ago
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