Buying the beneficiary position on a life insurance policy of someone who is dying is referred to as <u>Viatical Settlement</u>
Explanation:
- <u>Viatical settlement</u> refers to the sale of a life insurance policy by the owner to a third party for a amount which is more than its surrender value but less than its net death benefit.
- Viatical settlement provides the policy owner with a lump some amount of money.
- The <u>viatical settlement </u>is tax-free as per the Health Insurance Portability and Accountability Act (HIPAA) 1996
Answer:
C) No/Yes
Explanation:
An income statement (profit and loss account) is one of the financial statements of a company and shows the company’s revenues and expenses during a particular period. It indicates how the revenues are transformed into the net income or net profit
Absorption cost is a method of calculating the cost of a product or enterprise by taking into account indirect expenses (overheads) as well as direct costs.
How do you calculate total period cost under absorption costing?
Income statement shows Sales – Cost of Goods sold = Gross Margin (or Gross Profit) – Operating Expenses = Net Income and is based on the number of units SOLD.
Answer:
market segmentation
Explanation:
Market segmentation -
It is the marketing strategy , where the market is bifurcated into different segments , according to the needs of the consumers , is referred to as market segmentation .
The needs and taste of the consumers are considered , for a particular segment , and is incorporated into the goods and services .
Hence , from the given scenario of the question ,
The correct term is market segmentation .
GDP is the total market value of all final goods and services produced within a country in a given period of time.
The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.
<h3>What do you mean by investment?</h3>
Investment refers to the dedication of an asset to acquire growth in value over a duration of time. In finance, the motive of making an investment is to generate a return from the invested asset.
As per the information,
The vacancy rate is given is 5%
The occupancy rate is 100 - 5= 95%
![\rm\,The\,Net \,Income = Occupancy \, Rate \times Income - Expenses\\\\ \rm\,The\,Net \,Income = (95\% \times 3,600 \times 12) - 8,640\\\\ \rm\,The\,Net \,Income = \$32400](https://tex.z-dn.net/?f=%5Crm%5C%2CThe%5C%2CNet%20%5C%2CIncome%20%3D%20Occupancy%20%5C%2C%20Rate%20%5Ctimes%20Income%20-%20Expenses%5C%5C%5C%5C%20%20%20%5Crm%5C%2CThe%5C%2CNet%20%5C%2CIncome%20%3D%20%20%2895%5C%25%20%5Ctimes%203%2C600%20%5Ctimes%2012%29%20-%208%2C640%5C%5C%5C%5C%20%20%20%5Crm%5C%2CThe%5C%2CNet%20%5C%2CIncome%20%3D%20%20%5C%2432400)
Now, if it is assumed that the income is earned forever, then the present value of the income will be
PV of net income = A/r
A- 32400 , r - 12%
![\rm\,PV = \dfrac{32400}{0.12}\\\\\\PV = \$270000](https://tex.z-dn.net/?f=%5Crm%5C%2CPV%20%3D%20%5Cdfrac%7B32400%7D%7B0.12%7D%5C%5C%5C%5C%5C%5CPV%20%3D%20%5C%24270000)
Hence, The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.
Learn more about investment:
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