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
asambeis [7]
3 years ago
14

A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company f

orecasts that the revenue will be $190 million in the first year, but will decline by $2 million every year for the next 3 years. What is the present worth of total revenue at an interest rate of 18% per year?
Business
1 answer:
xxTIMURxx [149]3 years ago
7 0

Answer:

504.15 million.

Please find the detailed answer as follows:

Explanation:

Consider the following calculations. The key to solve the exercise is to apply the formula of compound interest.

Present Value = 190/(1+.18)^1 + (190 -2)/(1+.18)^2 + (190 - 2 - 2)/(1+.18)^3 + + (190 - 2 - 2 - 2)/(1+.18)^4 = 504.15 million

You might be interested in
If korean exports to the united states decline by $15 billion, by how much will cumulative korean spending drop if their mpc is
Andrew [12]
Given:
Change in exports: 15 billion
MPC = 0.75

MPC = Change in Consumption / Change in Disposable income

MPS stands for Marginal Propensity to Consume while MPS stands for Marginal Propensity to Save.

MPC + MPS = 1
MPC = 1 - MPS
MPS = 1 - MPC

Spending Multiplier = 1/MPS

Since MPC = 0.75 then MPS = 0.25

Spending Multiplier = 1/0.25 = 4

Change in Export * Spending Multiplier

15 billion * 4 = 60 billion

The cumulative Korean spending will drop by 60 billion.


8 0
3 years ago
2 The link that distributes a product from a supplier to the consumer is afn)
GenaCL600 [577]
The answer to this question is D
4 0
3 years ago
The______has issued the following requirements: "Refuse, recyclables, and returnables shall be removed from the premises at a fr
ivann1987 [24]

Answer:

its C) OSHA

Explanation:

sorry someone was being annoying as heck and buting in

7 0
3 years ago
Read 2 more answers
Your first morning in your new office, you reflect on what type of manager and leader you hope to be. Which of the following bes
d1i1m1o1n [39]

Answer:

a. Employees are more loyal and productive if they feel that their leader is admirable, caring, and ethical.

Explanation:

Leadership can be defined as a process which typically involves motivating, encouraging and inspiring employees working under an individual to be innovative and create positive changes that will foster growth and enhance the success of a business firm or company in the future.

A leader can be defined as an individual who is saddled with the responsibility of controlling, managing and maintaining a group of people under him or her. Some types of power expressed by leaders are referent power, legitimate power, coercive power, etc.

Generally, leaders use their powers to get other people to follow them. Some forms of power result from a formalized position in the organization while others are derived from personal characteristics or knowledge.

Basically, when a leader possesses and favors referent power (strong interpersonal relationship skills with subordinates), he or she would have a strong and productive working relationship with his subordinates (employees) because it encourages loyalty.

Hence, employees are more loyal and productive if they feel that their leader is admirable, caring, and ethical.

3 0
3 years ago
Cost of a​ short-term bank loan​) Jimmy Hale is the owner and operator of the grain elevator in​ Brownfield, Texas, where he has
zheka24 [161]

Answer:

a)

The rate of interest qouted = 1% + 7% = 8%

The annual interest expenses = $220,000*8%= $17,600.

Mr Hale has to increase the amount of bank balance with bank from $4,000 currently to $44,000 (20% of $220,000). The net amount of money he would recieve= $220,000 -($44,000 - $4,000) = $180,000.

Therefore the net cost of borrowing = ($17,600/$180,000)*100= 9.78%.

b)

if the interest rate is lowered to 7%, then annual interest expenses = $220,000*7%= $15,400.

The net annual cost of borrowing= ($15,400/$180,000)*100= 0.0855555 Or 8.55%.

Since interest rates has fallen, he can accept the project.

Explanation:

4 0
3 years ago
Other questions:
  • Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Cosi expects to incu
    5·1 answer
  • One reason to buy a home instead of rent a home is: A Homes have the potential to appreciate in value over time. B Homes have fe
    5·1 answer
  • A person who executes customer orders to buy and sell securities on the floor of the NYSE is called a:
    12·1 answer
  • Stately Crafters is a custom manufacturer of hand-crafted furniture. The company has 101 locations throughout the country and re
    13·1 answer
  • Jonathan absil wants to purchase a used ford mustang, which is advertised
    11·1 answer
  • Compare the way a multinational firm organizes the marketing research effort with the way a global or transnational firm approac
    12·1 answer
  • Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 22 years. As
    5·1 answer
  • 32. What is a predatory financial service?
    10·1 answer
  • Assume that you are interested in earning some return on idle balances you usually keep in your checking account and decide to b
    10·1 answer
  • Who all go to Carroll high School in Monroe louisiana
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!