Answer: $900,599.04
Explanation:
The present purchasing power equivalent is the present worth of this investment.
The investment will earn 5% for the first 7 years and then 9% for the next 10.
As there are different rates, the present worth calculation will have to reflect that.
At the end of the first 7 years, the present worth of the invested amount given 10 more years of investing at 9%. The Present worth is;
= 3,000,000(Present worth factor, 9%, 10 years)
= 3,000,000 * 0.4224
= $1,267,200
Then what is the Present worth of $1,267,200 in the current year given that it will be invested for 7 years at 5% to get to $1,267,200.
= 1,267,200 (Present worth factor, 5%, 7 years)
= 1,267,200 * 0.7107
= $900,599.04
Answer:
Some of these ethical issues are
1. Wages or incentives
2. Discrimination among employees
3. Issues on health and safety of employees
4. And other internal issues that may come up in the company or organization.
Explanation:
While dealing with contractors, a public manager is likely to have the issues above with contractors so he has to learn to tolerate and must also not show any form of discrimination against any employee or show any preferential treatment to any selected worker. He has to employ tact's when dealing with contractors as well as when he is dealing with his employees.
Answer:
3
Explanation:
The computation of the degree of operating leverage is shown below:
= (Sales - Variable expense) ÷ (Sales - Variable expense - Fixed expense)
= ($700,000 - $490,000) ÷ ($700,000 - $490,000 - $140,000)
= $210,000 ÷ $70,000
= 3
The (Sales - Variable costs) = Contribution margin
The (Sales - Variable costs - Fixed costs) = EBIT i.e Earnings before interest and taxes
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Unit sales 50,000
Units Dollar sales $ 500,000
Fixed costs $ 204,000
Variable costs $ 187,500
First, we need to calculate the unitary selling price and variable cost:
Unitary Selling price= 500,000/50,000= $10
Unitary variable cost= 187,500/50,000= $3.75
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 204,000/ [(10 - 3.75)/10]= $326,400
Answer:
$400
Explanation:
Since your insurance policy provides for replacement value, then if your microwave is stolen, the insurance company must pay the cost of a new and similar microwave oven. Insurance is not about gaining or losing money, it's about returning the insured to its previous financial state before the incident happened.
In this case the insurance company has to pay a higher amount, but sometimes the replacement value might be lower, e.g. high tech products are usually very expensive in their introduction stage but then their prices start to decrease at the growth or maturity stages.
