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3 years ago

Why does the term debit not always mean increase and credit does not always mean increase.

1 answer:

3 0

Sometimes you will use Debit to increase an account (ie: Assets) and sometimes you will use Credits to increase an account (ie: Liabilities)

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Jenny, who is married and the mother of three, is 25 years old and expects to work until 70. She earns $45,000 per year. Jenny e

jeka57 [31]

Answer:

$855,903.20

Explanation:

Real discounting rate=> i= [i'-f]/[1+f]. Where i is the real interest rate. i' is the nominal interest rate which is given as 5% and f is the rate of inflation

i = (5%-3%)/1+3%)

i = 2/1.3

i = 1.94%

Her after tax earnings = 45,000*(1-0.15) = $38,250

Personal consumption = 25% of this, 38,250*0.75 = $28,688.

We are discounting her earnings back 45 years at 1.94%. The equation will be: 28,688 * {1-(1+0.01940)^-45} / {0.01940}

= 28,688 * {1 - 0.42120322099] / 0.01940

= 28,688 * 29.83488551597938

= 855903.1956824165

= $855,903.20

So, the amount of life insurance necessary for Jenny using the Human Life Value method is $855,903.20

3 0

3 years ago

You walk onto a used-car lot to buy a car. You are willing to pay up to $15,000 for a car of good quality but you value a lemon

Charra [1.4K]

Answer:

Explanation:

Backward induction is the process of going backwards in time with yZermelour reasoningreasoning , from the end of a problem or situation, to determine a sequence of optimal actions. It starts by first considering the last time a decision might be made and choosing what to do in any situation at that time. Using this information, one can then determine what to do at the second-to-last time of decision. This process continues backwards until one has determined the best action for every possible situation (i.e. for every possible information set) at every point in time. IZermelo was the first to use this technique in 1913 to make a point that chess has pure optmal strategies

4 0

3 years ago

_____ 7. While North Americans want to decide the main points at a business meeting and leave the details for later, people in t

Afina-wow [57]

Answer:

"Mexico" is the appropriate answer.

Explanation:

Throughout the case of Mexican individuals, what and when to talk in the discussions or conferences is punctual.
Furthermore, you wouldn't overlook the little characteristics because doing so would generate misunderstanding or some complications. You mention as well as continue to talk all about that at the conference.

3 0

3 years ago

Sarasota Company has a factory machine with a book value of $86,300 and a remaining useful life of 7 years. It can be sold for $

RUDIKE [14]

Answer:

See the explanation for answer

Explanation:

Analysis showing whether the old machine should be retained or replaced is as prepared below:

Retain Replace Net Income

Equipment Equipment Increase(Decrease)

Variable manufacturing costs 43,63,100 32,32,600 11,30,500

New machine costs 0 3,59,000 -3,59,000

Sell old machine 0 -33,500 33,500

Total 43,63,100 35,58,100 8,05,000

The old factory machine should be replaced as there is increase in net income by 805,000 when old machine is replaced.

4 0

3 years ago

2) A firm sells two products. Product R sells for $20; its variable cost is $6. Product S sells for $50; its variable cost is $3

Tom [10]

Answer:

$6896551.7

Explanation:

Given the following :

Product R:

Selling price = $20

Variable cost = $6

Product S:

Selling price = $50

Variable cost = $30

Firm's fixed cost = $4, 000,000

Break-even point dollars = (Fixed cost /Contribution margin ratio)

Contribution margin : selling price - variable cost

Product R: $(20 - 6) = $14

Contribution margin ratio = ($14/$20) * 60% = 0.42

Product S: $(50 - 30) = $20

Contribution margin ratio = ($20/$50) * 40% = 0.16

Sum of contribution margin ratio for both products = (0.42 + 0.16) = 0.58

Break-even point dollars = (Fixed cost /sum of Contribution margin ratio)

= $4,000,000/0.58

= $6896551.7

3 0

3 years ago