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sergeinik [125]

3 years ago

14

A universal life policy has a death benefit of $125,000 and a cash accumulation value of $15,000. Generally, what will happen to

the policy if there is a $5,000 partial withdrawal

1 answer:

GrogVix [38]3 years ago

7 0

Answer:

The death benefit or cash accumulation will be reduced by the partial withdrawal.

Explanation:

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Nissan’s all-electric car, the Leaf, has a base price of $32,780 in the United States, but it is eligible for a $7500 federal ta

katen-ka-za [31]

Answer:

Nissan's all-electric car, the Leaf

PV cost of Leaf Purchase = $16,529

PV cost of Leasing = $12,944.78

The company should lease the car.

Explanation:

a) Costs incurred to purchase the Leaf:

Base price $32,780

less Federal tax credit ($7,500)

Charging station 2,200

less 50% tax credit (1,100)

Cash paid $26,380

Sales value after 3 yrs (9,851) ( $26,380 - 40% of base discounted to PV)

Net PV Investment $16,529

b) Calculation of Discounted Present Values of Payments under Leasing, using online financial calculator:

PV (Present Value) $12,944.78

N (Number of Periods) 3.000

I/Y (Interest Rate) 10.000%

PMT (Periodic Payment) $4,200.00

Starting Investment $2,500.00

Total Principal $15,100.00

Total Interest $2,129.50

c) The purchase of the Leaf would involve a present value cost of $26,380 after deducting all the savings from tax. The 40% sales value of the car at the end of 3 years = $13,112 ($32,780 x 40%). When this sales value is discounted to PV of $9,851, the PV of the car investments becomes $16,529 ($26,380 - $9,851). On the other hand, leasing will cost in PV the sum of $12,944.78

.

6 0

3 years ago

You are evaluating a project that will cost $500,000, but is expected to produce cash flows of $125,000 per year for 10 years, w

boyakko [2]

Answer:

1. 4 years

2. No

Explanation:

Payback period calculates the amount of time to recoup the total investment made on a project. It calculates how long the cash flows generated from a project would cover the cost of the project.

The cost of the project is $500,000

Cash flows are $125,000 per year for 10 years.

In the first year, the cost of the project is reduced by $125,000 and becomes $375,000.

In the second year, the cost of the project is reduced by $125,000 and becomes $250,000.

In the third year, the cost of the project is reduced by $125,000 and becomes $125,000.

In the fourth year, the cost of the project is reduced by $125,000 and becomes $0.

The cost of the project is totally recouped in the 4th year. therefore, the payback period is 4 years.

But the company has a preferred payback period of 3 years ,therefore , the firm won't undertake the project because the payback period is more than 3 years.

3 0

3 years ago

You just won the lottery and have two choices for how you will collect your money. You can collect $100,000 today or receive $20

patriot [66]

Answer:

Please see attachment

Explanation:

Please see attachment

7 0

3 years ago

A government entered into a general government capital lease in the prior year. During the current year, a lease payment of $50,

m_a_m_a [10]

Answer:

Net increase in Capital Assets with amount of USD 38,000/-

5 0

3 years ago

V. Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect:

Murrr4er [49]

Answer:

3. Supply of flour to increase.

Explanation:

The situation above is showing a<em> direct proportional relationship</em> between the "wheat," as a main ingredient of flour, and the flour itself.

If the price of wheat <em>decreases</em>, <u>suppliers will be interested in buying more of it in order to produce more quantities of flour at a </u><em><u>lower cost </u></em>because it will more likely lead to a<em><u> higher profit</u></em>. This will, therefore, increase the supply of flour in the market.

6 0

3 years ago