1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lesechka [4]
2 years ago
9

Wilt has a consulting contract with a firm that states that he will receive annual payments of $50,000 a year for five years wit

h the first payment due today. What is the current value of this contract if the discount rate is 8.4 percent
Business
1 answer:
Evgesh-ka [11]2 years ago
7 0

Answer:

Current value of contract is $214,142.50

Explanation:

A fix payment for a specific period starting today is called advance annuity. It is discounted on a given rate to calculate present value of annuity.

Present value of annuity is calculated by following formula.

PV of annuity = C  [ ( 1 - ( 1 + r )^-(n-1) ) / r ]

PV of annuity = $50,000 [ ( 1 - ( 1 + 0.084 )^-(5-1) ) / 0.084 ]

PV of annuity = $50,000 [ ( 1 - ( 1 + 0.084 )^-4 ) / 0.084 ]

PV of annuity = $214,142.50

You might be interested in
Suppose Brazil has a comparative advantage in coffee production and Mexico has a comparative advantage in tomato production. If
lawyer [7]

Answer:

The correct answer is A. Brazilian tomato producers are worse off.

Explanation:

A country has a comparative advantage in producing a good and service if its opportunity cost of producing that good and service is lower than that of its trading partner. So it is better off for a country that has a lower opportunity cost in production a good or service to specialise in that good or service.

Brazil has a comparative advantage in coffee production, meaning, it is better off in specialising in the production of coffee and will be worse off if Brazil specialises in Tomato

Mexico has a comparative advantage is Tomato, meaning, she is better off in specialising in Tomato and worse off if she specialises in Coffee

6 0
3 years ago
Joe's Hardware is adding a new product line that will require an investment of $ 1,512,000. Managers estimate that this investme
Sati [7]

Answer:

6.05 years

Explanation:

Payback period is the time in which a project returns back the initial investment in the form of net cash flow. For this purpose we use the net cash flows to calculate the payback.

Payback working is attached with this answer please find it.

7 0
2 years ago
questions What do you see as the main difference between a successful and an unsuccessful decision? How much does luck oues vers
ICE Princess25 [194]

Answer:

Explanation:

the difference between a successful and an unsuccessful decision is with a successful decision you would be successful and make profit since this is the subject of business and an unsuccessful decision will make you lose profit and make you lose into Investments.  there is no luck vs skill this is all skill actually.  skill has to do with this because you need to have certain experience in a certain thing to be having a successful decision.  

6 0
3 years ago
When frank sells a pie to jean instead of sarah, the economic value created in society is lower because of the difference in:.
Free_Kalibri [48]

When frank sells a pie to jean instead of sarah, the economic value created in society is lower because of the difference in consumer surplus.

What is consumer surplus?

Consumer surplus occurs when a consumer pays a price that is lesser for a goods than the actual price they are willing to pay for a product.

Difference in consumer surplus occurs because Frank now has more customers and he can now sell at a price lower than the consumer would pay.

Therefore, Frank sells a pie to jean instead of sarah,when the economic value created in society is lower because of the difference in consumer surplus.

Learn more on consumer surplus here,

brainly.com/question/3209988

5 0
2 years ago
Ball Bearings, Inc., faces costs of production as follows:
Travka [436]

Answer:

Q        Fixed       Variable    Total    Marginal    Aver.     Aver.     Aver.

<u>           Costs        Costs         Cost    Cost           FC         VC         TC      </u>

0          100             0              100         -               -             -             -

1           100           50               150       150           100         50         150

2          100           70               170         20            50         35          85

3          100           90               190        20           33.33      30        63.33

4          100          140               240       50            25          35          60

5          100         200               300       60            20          40          60

6          100         360              460      160           16.67       60        76.67

The firm's profit in this case is <u>-$360</u>.

True or False: This was a wise decision. ⇒ <u>False</u>

Depends on the situation and which costs are avoidable if the company shuts down operations. If it produces 4 cases, the losses reduce from -$100 to -$40, but the contribution margin is positive since revenues exceed variable costs by $60. But under the current price level, the company will not be able to generate profits unless it increases its sales price or decreases its fixed costs.

Vaguely remembering his introductory economics course, the company's chief financial officer tells the CEO it is better to produce 1 case of ball bearings, because marginal revenue equals marginal cost at that quantity.

At this level of production, the firm's profit is <u>-$100</u>.

True or False: This is the best decision the firm can make. ⇒ <u>False</u>

Accounting profit is maximized at 4 cases since marginal cost ($50) = sales price ($50). At this point the total profit is -$40.

3 0
3 years ago
Other questions:
  • Raul is an executive at a car rental company. He has the ability to get his staff excited about their work. He sees his own emot
    13·2 answers
  • Oscar's Red Carpet Store maintains a checking account with Academy Bank. Oscar's sells carpet each day but makes bank deposits o
    15·1 answer
  • Jean paid $18,489 for a new car. calculate the total cost of the car if she financed it at an interest rate of 3.5% for 4 years.
    15·2 answers
  • Which of the following fees would likely be the highest. A.Atm Fee. B.Overdraft fee C.Mounthly service fee. D.Account transfer f
    5·2 answers
  • Res ipsa loquitur means that the burden of proof A. shifts to the defendant. B. proves the negligence. C. falls on the plaintiff
    11·2 answers
  • _______________ ensures that all relevant financial information is reported. (select an option)
    12·1 answer
  • Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair value for all of the outstanding shar
    9·1 answer
  • DG Loans, a mortgage lender, was charged with a discrimination lawsuit. It alleged that the company was offering loans at higher
    11·1 answer
  • How does a government of a republic share its economy
    5·1 answer
  • What products are attractive to a social person? shy person?​
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!