Answer:
PV= $230,148.09
Explanation:
Giving the following information:
You will receive 27 annual payments of $22,500. The first payment will be received 7 years from today and the interest rate is 5.1 percent.
First, we need to calculate the final value of the payments. We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual pay= 22,500
n= 27
i= 0.051
FV= {22,500*[(1.051^27)-1]}/ 0.051
FV= $1,248,819.52
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 1,248,819.52/ (1.051^34)
PV= $230,148.09
Answer:
Sally (the buyer) should pay $865.58 and the seller should pay $368.42.
Explanation:
First we must determine property taxes per day = $1,234 / 365 = $3.38 per day
The seller is responsible for the property taxes until the closing date = 31 days for January + 28 days for February + 31 days for March + 19 days for April = 109 days x $3.38 per day = $368.42
Sally would be responsible for the remaining taxes = $1,234 - $368.42 = $865.58
Answer:
Weak-tie
Explanation:
According to research in the area of entrepreneurship, it is more likely that an entrepreneur will get a new business idea through a Weak-tie relationship.
Weak-tie relationship are the relationship with acquantiance that it give more favor than from someone, whom we know already. Social networking is the perfect examples in these days to build those relationship and it bridges that gap. These weak-tie help in getting new business and explore new area, which help to grow. It also add sense of belongingness to the community, when we have more weak-ties.
Answer:
1. Apart from helping to know the average cost of a product, analyzing fixed and variable cost will help to derive the break even point.
2. Profit will go down
Explanation:
1. The size of the selling price and the variable cost determine contribution per unit of a product. Contribution per unit is Price minus variable cost. This shows the contribution of sales revenue towards covering the fixed cost of a product.
2. Relevant range is the estimated or budgeted activity level which defines a business volume of production or operation, it is both maximum and minimum threshold within which the entity must operate to expect certain level of cost and revenue.
Sometimes fixed costs are fixed within a relevant range of activities and outside such range, fixed cost may become variable, which will all things being equal impact negatively on the price.
Also, within relevant range volume discount may be achieved and outside such range, this may be forfeited which, will also reduce profit all things being equal.
Answer:
The effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits
Explanation:
In order to calculate the effect on Morgantown's overall profit we would have to make the following calculations:
Contribution margin per unit for Lock Division = Selling price – Variable costs = $40 - $22 = $18
Contribution lost by lock division if Cabinet division buys from outside = $18 * 10,000 = $180,000
Cost per unit saved by Cabinet division = $40 - $36 = $4
Total cost saved by cabinet division = $4 * 10,000 = $40,000
Net decrease in profit = Contribution lost – Cost saved = $180,000 - $40,000 = $140,000
Therefore, the effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits.
