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Dafna1 [17]
3 years ago
6

An arithmetic cash flow gradient series equals $600 in year 1, $700 in year 2, and amounts increasing by $100 per year through y

ear 9. At i = 9% per year, determine the present worth of the cash flow series in year 0.
The present worth of the cash flow series in year 0 is $
The question is properly stated and nothing is wrong with it!
Business
1 answer:
Scrat [10]3 years ago
7 0

Answer:

Present value ofthe annuity 6,163.14

Explanation:

We build the schedule of the annuity:

#  Beginning / Installment / Total / Interst / Ending

1                       600 600 1.09      654

2    654         700         1354 1.09     1,475.86

3   1475.86 800 2275.86 1.09    2,480.69

4  2480.69 900 3380.69 1.09    3,684.95

5  3684.95 1000 4684.95 1.09    5,106.6

6  5106.6 1100 6206.6 1.09    6,765.19

7  6765.19 1200 7965.19 1.09    8,682.06

8 8682.06 1300 9982.06 1.09   10,880.45

9 10880.45 1400 12280.45 1.09   13,385.69

Then we discount the future value at 9% to get the present value:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $13,385.6900

time  9.00

rate  0.09000

\frac{13385.69}{(1 + 0.09)^{9} } = PV  

PV   6,163.1435

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Cox Electric makes electronic components and has estimated the following for a new design of one of its products:
vfiekz [6]

Answer:

a) attached below

b) P( profit ) = TR(q) - TC(q)

c) attached below

d) -$5000 ( loss )

Explanation:

Given data:

Fixed Cost = $10,000

Material cost per unit = $0.15

Labor cost per unit = $0.10

Revenue per unit = $0.65

<u>a) Influence diagram to calculate profit </u>

attached below

<u>b) derive a mathematical model for calculating profit.</u>

VC = variable cost per unit , LC = per unit labor cost , MC = per unit marginal cost, TC = Total cost of manufacturing , FC = Fixed cost, q = quantity, TR = Total revenue, R = revenue per unit

VC = LC + MC

TC (q) = FC + ( VC * q )

TR (q) = R * q

P( profit ) = TR(q) - TC(q) ------------ ( 1 )

c)  attached below

<u>d) If Cox Electrics makes 12,000 units of the new product </u>

The resulting profit = -$5000

q = 12

P = TR ( q ) - TC ( q )

  = ( R * q ) - ( Fc + ( Vc * q ) )

  = ( 0.65 * 12000 ) - ( 10,000 + ( 0.25 * 12000 )

  = -$5200

3 0
3 years ago
Which of the following assumptions is embodied in the AFN equation?
aleksandr82 [10.1K]

Answer:

d. Accounts payable and accruals are tied directly to sales.

Explanation:

Additional funds needed method determines the amount that the company needs to finance the increase in total sales.

In response to the increase in sales, the company has to increase its assets to achieve that goal. The increase in total assets is partly offset by an increase in liabilities and the other part is offset by an increase in retained earnings.

The only true statement of the AFN equation is the option d), and the other options are not right.

8 0
3 years ago
An income property generates $9,200 per month, and is valued at $985,000. What is its gross rent multiplier
Alborosie

Answer:

107.07

Explanation:

Calculation for What is its gross rent multiplier

Gross rent multiplier= Income Property value/income property generated per month

Let plug in the formula

Gross rent multiplier= $985,000/$9,200 per month

Gross rent multiplier=107.07

Therefore its gross rent multiplier will be 107.07

8 0
3 years ago
Imagine an economy in which: (1) pieces of paper called yollars are the only thing that buyers give to sellers when they buy goo
Tomtit [17]
<span>Imagine an economy in which:
(1) pieces of paper called yollars are the only thing that buyers give to sellers when they buy goods and services, so it would be common to use, say, 50 yollars to buy a pair of shoes;
(2) prices are posted in terms of yardsticks, so you might walk into a grocery store and see that, today, an apple is worth 2 yardsticks; and
(3) yardsticks disintegrate overnight, so no yardstick has any value for more than 24 hours.

In this economy, the yardstick is a unit of account but it cannot serve as a store of value.</span>
4 0
3 years ago
In her spare time, Sharon is the chair for a local nonprofit organization. The project committee is attempting to determine what
maxonik [38]

Answer: (D) Competing

Explanation:

 According to the given question, Sharon is one of the chair-person of a local non-profit organization and usually in her free time she selected the various types of ideas, thoughts and then forced her ideas on the other organizational members.

So, on the basis of the given concept she is using the competing approach to conflict as this type of approach is typically used for making quick decisions for the purpose of resolving various types of problems or issue is an organization. This is also known as the conflicting management style.  

Therefore, Option (D) is correct answer.

3 0
3 years ago
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