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Mumz [18]
4 years ago
13

Your annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you 6 months' salary now. Opt

ion 2 pays you and your heirs $6,000 per year forever (first payment at the end of this year.) If you are required return is 11%, which option should you choose?
1. How much is the value for alternative 1?
2. How much is the value of alternative 2?
Business
1 answer:
kotegsom [21]4 years ago
7 0

Answer:

Option 1 is more convenient.

Explanation:

Giving the following information:

The annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you 6 months' salary now. Option 2 pays you and your heirs $6,000 per year forever

The present value of option 1 is:

PV= 6*100,000= $600,000

To calculate the present value of option 2 we need to use the present value formula of a perpetual annuity:

PV= Cash flow/i

PV= 6,000/0.11= $54,545

There is no doubt that option 1 is better.

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Marquis Company uses a weighted-average perpetual inventory system.
timama [110]

Answer:

The amount of the cost of goods sold for this sale is $98.4

Explanation:

Marquis Company uses a weighted-average perpetual inventory system

August 2, 22 units were purchased at $3 per unit,

Total cost = $3 x 22 = $66

Average cost per unit: $3

August 18, 27 units were purchased at $5 per unit

Total inventory = $66 + $5 x 27 = $201

Average cost per unit = $201/(22+27) = $4.1

August 29, 24 units were sold

Cost of goods sold = 24 x $4.1 = $98.4

8 0
3 years ago
You're in charge of a new construction worksite. You must make sure no one Gets hurt and that everything complies with osha. Nam
Dovator [93]

Answer:

Check the safety of the environment and the people

Explanation:

If there are any hazards (electrical, falling, or mechanical) it must be removed ASAP and/or reported. Make sure everyone has their PPE and that it is in good and working condition.

4 0
3 years ago
Read 2 more answers
Gladys learns from her agent Phil that he has just received a full price offer from a minority couple. She tells Phil to pull he
GaryK [48]

Answer:

both Gladys and Phil

Explanation:

Based on the information provided within the question it can be said that in this scenario both Gladys and Phil are guilty of violating the Fair Housing Law.  The Fair Housing law completely outlaws the refusal to sell a house or property to someone on the basis of race, color, disability, religion, sex, familial status, or national origin. Which is exactly why Gladys and Phil removed the property and did not want to sell to the minority couple.

5 0
3 years ago
Maria Martinez and her sister, Christina, are planning to operate a small day care center in a remodeled building. They've obtai
Maurinko [17]
The correct answer would be D. Limited Partnership
7 0
3 years ago
We determine the net cash flows from investing activities by analyzing changes in _____ accounts from the balance sheet.
Tom [10]

We decide the internet money flows from investing things to do by using analyzing modifications in long-term asset money owed from the stability sheet.

Elevision units that walmart owns for selling to its clients are categorised as equipment.

<h3>What is tools ?</h3>

Equipment is a non modern-day or long-term asset account which reports the fee of the equipment.

Equipment will be depreciated over its beneficial lifestyles by debiting the income assertion account Depreciation Expense and crediting the balance sheet account Accumulated Depreciation (a contra asset account).

<h3>Where does equipment go in accounting?</h3>

When gear is purchased, it is no longer in the beginning said on the earnings statement. Instead, it is reported on the stability sheet as an increase in the constant property line item.

Learn more about long term asset here:

<h3>brainly.com/question/9929994</h3>

<h3>#SPJ4</h3>
5 0
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