The term that describes the restoration of the insured person to the financial position that he or she was in before the loss occurred is called indemnity. This allows protection to the insurer in case of loss and damage and will protect against any legal quandry that may occur.
Answer:
D. Contribution margin would be equal to total fixed costs
Explanation:
As we know that
break even point is the point at which the firm is earning no profit or no loss suffered
In equation, it is
Total cost = Total revenues
In addition,
The contribution margin = Sales - variable expenses
Therefore
The contribution margin = Fixed cost = break even point
If we subtract the contribution margin from the fixed cost the amount should be zero which implies the break even point
Answer: $5,396.79
Explanation:
The net present value is value of the after tax cash flows from an investment minus the value of the amount invested.
The net present value can be found using a financial calculator.
Cash flow for year zero = $-175,000
Cash flow for each year from year 1 to year 3 = 70,000
I = 8%
NPV =$5,396.79
I hope my answer helps you
Answer:
$10,245.20
Explanation:
The present value by the Eliza shall be determined through below mentioned formula:
Present value=Future value(1+i)^-n
In the given question
Present value=?
Future value= Amount that the Eliza will receive after four years=$15,000
i=interest rate involved=10%
n=number of years after which the $15,000 will be received=4
Present value=$15,000(1+10%)^-4=$10,245.20
