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liraira [26]
3 years ago
8

Problem 5-35 Comparing Cash Flow Streams [LO 1] You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They

’ve offered you two different salary arrangements. You can have $8,200 per month for the next two years, or you can have $6,900 per month for the next two years, along with a $37,000 signing bonus today. Assume the interest rate is 6 percent compounded monthly. Requirement 1: If you take the first option, $8,200 per month for two years, what is the present value? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $ 139912.93 Requirement 2: What is the present value of the second option?
Business
1 answer:
Minchanka [31]3 years ago
7 0

Answer:

PV of 1st option = $185,015.50

PV of 2nd option = $192,683.78

Explanation:

Computing the present value of the monthly payments, we use the formula PV = \frac{A(1-(1+r)^{-n}) }{r}

Where PV = present value of the monthly payments

A = monthly salary

r = monthly interest rate = 6%/12 = 0.5% = 0.005

n = number of months = 24 months

PV of the 1st option, $8,200 monthly for the next 2 year

PV = \frac{8,200(1-(1.005)^{-24}) }{0.005} = $185,015.50.

PV of the 2ns option, $6,900 monthly + $37,000 signing bonus

PV = \frac{6,900(1-(1.005)^{-24}) }{0.005}+37,000 = $155,683.78 + $37,000 = $192,683.78.

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Answer: rational decision-making model

Explanation:

Rational decision-making model could be seen as when the decision maker has all alternatives on a decision with much information, with time on their hands and resources to evaluate the various choices thats made available before them.

Danny's choice to go against other people decision and using a detailed and different consideration for the employee decribed he used a rational decision making model, he still believed in the individual when others did not, and this affected his decision and didn't allow that of others to influence him.

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3 years ago
When a serious customer injury occurs due to product contamination, you need to make contact with your DL and QA within
klemol [59]

Serious injuries due to product contamination need to be reported within a day or 24 hours to DL and QA

Product contamination occurs as a product is in contact with a chemical, bacteria, fungi, etc., or any other substance that is not part of the regular composition of the product.

Product contamination is a serious issue that can lead to disease, accidents, and even death. Due to this, if product contamination occurs and this causes an injury this needs to be reported as soon as possible, usually within 24 hours.

This is important because the company that produces the product can:

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Moreover, this should be reported to areas such as Quality Assurance (QA) that verify the quality of products.

Learn more in: brainly.com/question/2600140

7 0
2 years ago
Due to impending labor strife over planned layoffs in its Silicon Valley headquarters, a social networking company has decided t
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Answer:

putting a halt on the layoffs

Explanation:

This strategy should begin by putting a halt on the layoffs. This should be top priority since the layoffs themselves are the main cause for the criticism that the company is receiving and this criticism is the sole reason as to why its market position and staff productivity has fallen drastically. People think the company is failing and the staff is scared that they will eventually be fired. By stopping layoffs and waiting for a market recovery you give other better options a chance to arise and more efficient strategies to take effect.

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3 years ago
ECONOMICS, PLEASE HELP.
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Equilibrium is the point where supply meets demand. Look at the table and see where those two columns are the same.

For B. look at the chart and see at 1,50 rent (the first column) the demand is greater than supply or not. If demand is less than supply, there is a surplus. If demand is higher, there is a shortage.

This applies to question C as well. Look at the first column, find the rent, and see if there is more supply or more demand.


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3 years ago
The auditors are concerned about transactions that have been recorded in the journals (and subsequently in the ledgers) that are
rodikova [14]

Complete question:

Assume the following general flow of documents in an accounting system. Reply to the following question:

"Source Documents --> Journals --> Ledgers"

The auditors are concerned about source documents that reflect valid transactions that have not been recorded in the journals. Which procedure would be most effective?

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Either (1) or (2).

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Tracing is the method of tracking the transaction back to the source document in accounting records. Transaction failures are monitored and auditors are often used to ensure whether transactions have been properly reported.

Tracing relates to the compilation and the follow-up to the record of an financial transaction (the source document).

Tracing checks to see that the transactions that happened in the financial reports are registered. Therefore it would be most effective to translate "Trace documents from source into journals."

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