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DIA [1.3K]
3 years ago
15

A rich aunt has promised you $ 5 comma 000 one year from today. In​ addition, each year after​ that, she has promised you a paym

ent​ (on the anniversary of the last​ payment) that is 3 % larger than the last payment. She will continue to show this generosity for 20 ​years, giving a total of 20 payments. If the interest rate is 6 %​, what is her promise worth​ today?
Business
1 answer:
gtnhenbr [62]3 years ago
7 0

Answer:

PV= $45,642.73

Explanation:

Giving the following information:

Cash flow= 5,000

Number of years= 20

Interest rate= 6%

Growth rate= 3%

First, we need to calculate the future value of the aunts' generosity. <u>We will incorporate the growth rate to the interest rate.  </u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,000*[(1.09^20) - 1]} / 0.09

FV= $255,800.60

Now, the present value:

PV= FV/(1+i)^n

PV= 255,800.6/1.09^20

PV= $45,642.73

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The Monster Truck operates several specialty vehicles that provide hot food and beverages for firms that have workers employed i
GaryK [48]

Answer:

The answer is 20.55 days

Explanation:

Solution

Given that:

Annual sales =$627,200

Average accounts receivable =$35,300

Now

The accounts turnover ratio (receivable) = Sales/Average accounts receivable

Accounts receivable turnover ratio = $627,200/$35.300

=17.76 times

Thus

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=20.55 days

Therefore The company takes 20.55 days to get payment for its services

7 0
3 years ago
Cruella Inc. owns 85% of Horace Co. During 20X9, Cruella sells goods to Horace with a 25% gross profit. Horace sold all of these
vovangra [49]

Answer:

Option A is the correct answer,no adjustment is needed.

Explanation:

When related companies sell to each other,the sales transaction is not sales in actual sense,as it is likened to the left hand of an individual exchanging cash with the right hand,in other words, the cash is still owned by the same person.

The same concept is applicable to subsidiaries and parent,the sales recorded from a group perspective is when they sold to external third parties.

When sales happen between related companies, a provision for unrealized profits has to be made to the tune of inventory purchased from related companies  not yet sold externally,as the whole of the goods have been to third parties, no such provision or adjustment is required.

4 0
3 years ago
Read 2 more answers
Estimate the cost of expanding a planned new clinic by 25,000 ft2. The appropriate capacity exponent is 0.62, and the budget est
jeka57 [31]

Answer:

cost of expansion  = $1389859.55

Explanation:

Given data:

Original size = 185,000 ft^2

New expansion = 25000 ft^2

capacity component  = 0.62

total cost for original size of clinic is = $17 million

Size of new clinic = 185,000 + 25,000 = 210,000 ft^2

cost of new clinic=  17,000,000 \times [\frac{size\ of\ new\ clinic}{185,000}]^{0.62}

cost of new clinic =17,000,000 \times [\frac{210,000}{185,000}]^{0.62}

cost of new clinic = $18,389,859.56

cost of expansion = cost of 210,000 ft^2  -  cost of 185,000 ft^2

                               = 18,389,859.56- 17,000,000

cost of expansion  = $1389859.55

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elena-14-01-66 [18.8K]

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Marketing is a broad subject with various techniques and tools. Thus, there can be a lot of methods through which a marketing manager can stabilize the operations of company to some extent. The main methods are as follows :

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2. Knowing the audience :

One best way to hedge the market uncertainties is to completely understand the behavior of your customers. Thus, one can conduct research on different levels to understand customer preference.

7 0
3 years ago
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