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Simora [160]
3 years ago
9

Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a pr

ofessional organization for divorce attorneys. The membership dues for the ADLA are $650 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $7,000 and never have to pay annual membership dues. Obviously, the lifetime membership isn’t a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it’s a great deal. Suppose that the appropriate annual interest rate is 5.9%. What is the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $650 in annual membership dues? (Note: Round your answer up to the nearest year.)
a. 16 years
b. 21 years
c. 19 years
d. 14 years
Business
1 answer:
svetoff [14.1K]3 years ago
3 0

Answer:

C) 19 years

Explanation:

We must determine the net present value of the annual payments in a similar way to calculating the present value of annuities. We can use an excel spreadsheet and the present value formula with a 5.9% interest rate and then subtract the lifetime fee ($7,000):

Present value 14 years = $6,079 - $7,000 = -$921

Present value 16 years = $6,614 - $7,000 = -$386

Present value 19 years = $7,310 - $7,000 = $310

Present value 21 years = $7,711 - $7,000 = $711

<u>*present value 18 years = $7,091 - $7,000 = $91, but 18 years was not an option.</u>

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Price: The value of goods and services that consumers need to pay in order to get it

Cost: The money needed to manufacture a good

So, if the manufacturing costs increase, the Yota expenditure is also likely to increase. As producers want to maintain or even increase profit margins to satisfy shareholders, the price they set for consumers are also likely to increase.

On the other hand, if there is a decrease in cost of resources, the producer is likely to produce more at every price level. Therefore, lowering the price. It is the law of supply.
8 0
3 years ago
"Google employs the practice of team building and rewards ideas that are outside the box. They are likely to have ________ compa
Vladimir79 [104]

Answer:

lower employee turnover                        

Explanation:

Employee turnover represents the number or proportion of employees leaving a company and being replaced by new ones. Evaluating employee turnover can be useful for executives who want to look into the considerations for turnover or measure the cost-to-recruit for budget considerations.

As in the given case, google is making their employees fell more valuable and involved, its employees will feel more satisfied with the jobs and will not easily leave the company. Thus, the employee turnover in google will be lower.

6 0
3 years ago
Your campus computer store reported Sales Revenue of $175,000. The company's gross profit percentage was 65 percent. What amount
vaieri [72.5K]

Answer:

The company reported $61,250 amount of Cost of Goods Sold

Explanation:

As gross profit percentage is the net percentage of sales revenue and cost of goods sold. We can find the cost of goods sold percentage as follow

Gross profit = Sales - Cost of Goods Sold

Placing the percentage

65% = 100 % - Cost of Goods sold

Cost of Goods sold = 100% - 65%

Cost of Goods sold = 35%

Now calculate the value of cost of goods sold using following formula

Cost of goods sold percentage = Cost of good sold / Sales Revenue

35% = Cost of Goods sold / $175,000

Cost of Goods sold = $175,000 x 35%

Cost of Goods sold = $61,250

6 0
3 years ago
A share of common stock just paid a dividend (D0) of $1.50. If the expected long-run growth rate for this stock is 5%, and if in
skelet666 [1.2K]

Answer:

Current stock price = $24.23

Explanation:

Stock price under Discounted Model:

P0 = D1 \div(Ke - g)

P0 = Current Market price of the share

g = Growth rate = 5.0%

Ke = Cost of equity = 11.5% p.a

D1 = Expected dividend = $1.50 (1 + 0.05)= $1.575

P0 = $1.575 / (11.50% - 5.0%)

Current stock price = $24.23

8 0
3 years ago
The discounts lost account is used under the ___ method for inventory. multiple choice question. periodic gross perpetual net
maxonik [38]

The discount lost account is used under the net method for inventory.

<h3><u>What is discount?</u></h3>
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  • When a bond's price is trading below its par value, or face value, in the fixed-income market, a discount is present.
  • The extent of the discount is equal to the difference between the price paid for a security and its par value.
  • Bonds may trade at a discount for a variety of reasons, such as rising interest rates, problems with the underlying company's credit, or riskiness when compared to comparable bonds.

The discount rate, an interest rate used to calculate the time worth of money, should not be confused with a discount.

Know more about discount with the help of the given link:

brainly.com/question/3541148

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7 0
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