Answer:
The PV is 125,000
Explanation:
We need to solve for the present value of a perpetuity:
The yearly amounts are 10,000
while the current interest rate is 8% = 8/100 = 0.08
10,000 / 0.08 = 125,000
the perpetuity is worth 125,000 dollars
Note, when the market rate changes the value of the perpetuity also changes as the constant cash flow is dividend over a larger or lower rate generating smaller or higher amounts, respectively
Answer:
Zack's adjusted gross income
His adjusted gross income is equal to his gross income minus eligible deductions.
Adjusted gross income (AGI) = gross income - deductions for AGI
= $74,000 - $5,000
= $69,000
Zack's taxable income
His taxable income is equal to his AGI minus itemized deductions minus tax prepayments minus tax credits.
Taxable Income = $69,000 - $2,500 - $8,400
= $58,100
Answer:
Some of the problems of a commission-based system can lead to are:
- Aggressive sales tactics by sales personnel: People can be very driven when money is involved. When a company's compensation plan puts a heavyweight on commissions, salespeople, know that their depends on same resort all sort of manoeuvers in order meet their targets. Some times they push too much and this repels customers leading to negative brand equity which in turn stimulates the opposite effect that the compensation plan was installed to attain. Department managers in consultation with the HR department can work out a compensation system that is not so reliant on commissions so as to create a balance. It is also important to keep a feedback system in place that allows the company to monitor its brand equity.
2. Budget/Compensation Disequilibrium
When a company relies on a sales system that is heavily dependent on a commission-based reward system, sometimes, they could find themselves in a spot where they have to pay out commissions even though the monies have not come in.
This could lead to cash flow problems.
One way out of this is to use policies to manage the amount of days goods can be held in credit by the debtor. That is, if usually, such a company had a credit policy of 60 days, they could shorten it to 45 or 30 days. It can also elect to put an interest rate on the credit. This will discourage customers from holding on to their payment for too long.
Policies can also be used to manage the sales personnel date of payment for goods sold on credit. The policy can state that "commissions for cash sales will be paid as at when due. However, the commission on credit sales will be paid when the company recieves payment for same".
Cheers!
mathematical knowledge for calculations and data analysis, communication and interpersonal skills for working with clients, and problem-solving skills for handling any issues that arise.
Answer:
present value = $9320.06
Explanation:
given data
cash flow 1 year C1 = $500
cash flow 2 year C2 = $1000
pay 3 year C3 = $800
interest rates r = 10 percent per year = 0.10
solution
we get here present value that is
present value = ....................1
put here value and we will get
present value =
present value = $9320.06