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
aniked [119]
3 years ago
8

Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $62,000 cash immediately

, (2) $19,000 cash immediately and a six-period annuity of $7,600 beginning one year from today, or (3) a six-period annuity of $12,500 beginning one year from today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Assuming an interest rate of 6%, determine the present value for the above options. Which option should Alex choose? 2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annual deposits of $110,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030?

Business
1 answer:
Sergeeva-Olga [200]3 years ago
7 0

Answer:

Explanation:

We must find the option with the greatest net present value (NPV).

1) The NPV is $62,000

2) First, you must calculate the NPV with the formula attached, for example:

NVP= ($7,600/(1+6%)^1)+($7,600/(1+6%^2)+($7,600/(1+6%^3)... and so on until year 6

With the excel formula "NPV" you can calculate the net present value specifying the interest rate, the cash flows.

NPV= $37,371.66

The TOTAL NPV= $19,000+$37,371.66= $56,371.66

3) NVP= ($12,500/(1+6%)^1)+($12,500/(1+6%^2)+($12,500/(1+6%^3)... and so on until year 6

NPV= $61,466.55

The best option is option 1.

Question 2.

We must use the compound interest formula:

Final Capital (FC)= Initial Capital (IC)*[(1+interest(i))]^(number of periods(n))

In Dec 31, 2022:

FC= $110,000*(1+7%)^1

FC=$117,000

Balance in Dec 31,2022 = $117,000+$110,000=$227,000

In Dec 31,2023

FC= $227,000*(1+7%)^1

FC= $243,639

Balance in Dec 31,2023= $243,639+$110,000= $353,639

And so on until 2030

If the Weimer corporation makes the last payment in 2030;

The balance in Dec,31 2030= $1,409,809+$110,000= $1,519,809

You might be interested in
Westbank Real Estate, Inc. owns 10 acres of forested land. Westbank wants the land cleared in order to build houses. Westbank em
gizmo_the_mogwai [7]

Answer:

Answer 1  

Yes, all the electronic forms of the transcribed agreement will be measured underneath the act of deceptions. These kinds of agreements are assumed comparable significance as in the circumstance of contract inscribed on the paper.

Answer 2

It “does” fulfill the obligation. As per the law of deceptions, all the electronic contract will be named corresponding to the inscribed agreements .

Answer 3  

Land is considered as the “real property” beside with all the possessions involved openly to it.

Answer 4  

“All” physical objects

However, land contain all the additional possessions involved to the land openly .

6 0
3 years ago
Mervon Company has two operating departments: Mixing and Bottling. Mixing has 350 employees and Bottling has 350 employees. Indi
krok68 [10]

Answer:

Allocated administrative cost for mixing is $81000

And allocated administrative cost for for bottling is $81000

Explanation:

We have given total number of employs for mixing = 350

And total number of employs for bottling = 350

Administrative cost = $162000

So total number of employs = 350+350 = 700

So allocation base for mixing =\frac{350}{700}=0.5

So allocated amount for mixing = 0.5×$162000 = $81000

Allocation base for bottling = =\frac{350}{700}=0.5

So allocated amount for bottling = 0.5×$162000 = $81000

3 0
3 years ago
In order to hire graduates and postgraduates of microbiology, Arthur, the human resource (HR) manager at Kartholfen, a pharmaceu
ss7ja [257]

Answer:

<em><u>External recruitment.</u></em>

Explanation:

External recruitment is a strategic process that the corporate human resources sector uses to select out-of-company candidates with qualified profiles to fill available jobs within the organization.

Companies often use varied sources to select candidates, the most common being talent banks, job fairs, recruitment sites, newspapers and more.

The biggest benefits an organization can derive from performing an external recruitment process are greater choice among candidates, talent renewal, increased competitiveness by hiring a top talent and increasing diversity among professionals.

6 0
3 years ago
What are two current rising or resurgent powers that the video mentions that may be planning on changing the established interna
Arisa [49]

The movie outlines two contemporary rising or resurgent nations which may be planning to alter the current international system China and Russia.

<h3>What exactly does International System mean?</h3>

In politics, the phrase "international system" can be used to describe: It is the world's conglomeration of states. The phrase can also be used to refer to pre-industrial international state systems. It is frequently used to describe twentieth-century international systems.

<h3>What distinguishes the International System?</h3>

The existing global system is marked by a diffusion of authority among various state and non-state actors, a change in the balance of regional and international powers, a relative waning of long-established Western nations and the emergence of new centers of power, growing significance of regional cooperation, and a return to the Cold War-era power structures.

to know more about International System visit:

brainly.com/question/20370128

#SPJ4

8 0
1 year ago
when some resources used in production are only available in limited quantities, it is likely that the long-run supply curve in
aleksklad [387]

Answer:  The correct option therefore is > upward sloping

Explanation:

When resources are limited in quantity, the cost of production would increase. Hence, in the long run, the supply curve will be upward sloping.

3 0
2 years ago
Other questions:
  • You currently purchase a part used in your production process from an outside supplier, and have decided to begin making this pa
    6·1 answer
  • Patty's Paper, an online stationery and card retailer, adopts an organizational structure in which job titles are abandoned, tra
    10·2 answers
  • Mr. musselman is the head coach of the high school football team. he notices that, after learning the names of the players on th
    10·1 answer
  • Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000.
    8·1 answer
  • Ellen supports her family as a self-employed attorney. She reports $90,000 of income on her Schedule C and pays $8,000 for healt
    6·1 answer
  • To argue that schools should adjust their curriculum so that African, Asian, and indigenous accounts of history be incorporated
    15·1 answer
  • During 2020, Bayside Inc. has 9% cumulative non-participating preferred stocks with a total par value of $300,000 and common sto
    5·1 answer
  • The total sales of a product, by all competitors in the industry, is:____.a. highest in the introduction stage.b. lowest in the
    8·1 answer
  • Muecke Inc. is working on its cash budget for April. The budgeted beginning cash balance is $40,000. Budgeted cash receipts tota
    5·1 answer
  • Stan works from home in Louisiana. His company is located in Washington. This work arrangement is
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!