Answer:
1. 12.25
2. 15.625
3. 25.75
4. 43.75
Explanation:
Po = Do (1 + g) /( Ke - g)
(1) Po = Do (1 + g) /(Ke - g)
Where = Ke = 8% , g= -2%
Po = 1.25(1 - 2%) / ( 8% + 2%)
= 1.225 / 10%
= $12.25
(2). Po = Do (1 + g) /( Ke - g)
Where = Ke = 8% , g= 0%
Po = 1.25(1 + 0) / ( 8% - 0)
= 1.25 / 8%
= $15.625
(3). Po = Do (1 + g) /( Ke - g)
Where = Ke = 8% , g= 3%
Po = 1.25 (1 + 3%) / (8% - 3%)
= 1.2875 / 5%
= $25.75
(4) Po = Do (1 + g) /( Ke - g)
Where = Ke = 8% , g= 5%
Po = 1.25 ( 1 + 5%) / (8% - 5%)
= 1.3125 / 3%
= $43.75
Answer:
$62,784
Explanation:
With MACRS depreciation , annual depreciation amount is calculated by multiplying each year' s rate by the original cost of the equipment.
Write down depreciation schedule as follows;
<u>Year </u> <u>Depreciation </u> <u>Book value </u>
Yr 1 0.2* 218000= 43600 218000 - 43600 = 174400
Yr2 0.32* 218000 = 69760 174400 - 69760 =104640
Yr3 0.192* 218000 = 41856 104640 - 41856= 62784
Therefore, at the end of 3 years, the book value of the equipment will be $62,784
Answer:
50% tax on the amount not distributed as required
Explanation:
In this specific scenario, the individual will have to pay a penalty of 50% tax on the amount not distributed as required. This is mainly due to the fact that traditional IRA accounts require that distribution of benefits must begin no later than age 70½ if immediate annuities are used to pay for them. Failure to do so would have a consequence of a 50% tax on the undistributed amount, and must be paid by the owner of the account.
I would say that what best describes the team of managers from the different departments (Engineering, R&D, Prod, and Marketing) is a Cross-functional team because the group consists of different people in different fields of expertise which work together toward a common goal for the Lizard Clothing Company.
