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mestny [16]
4 years ago
12

Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under th

e first option, Julie would receive a lump sum of $157,000 immediately as her full retirement benefit. Under the second option, she would receive $20,000 each year for 6 years plus a lump-sum payment of $65,000 at the end of the 6-year period. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:
1-a. Calculate the present value for the following assuming that the money can be invested at 12%.
1-b. If she can invest money at 12%, which option would you recommend that she accept

Business
1 answer:
djverab [1.8K]4 years ago
7 0

Answer:

Please see attachment.

Explanation:

Please see attachment.

You might be interested in
Which of the following is correct?
ElenaW [278]

Answer:

The correct answer is letter "A": During the Great Recession, unemployment rates for men rose above those of women.

Explanation:

The Great Depression is the worst economic recession known in the modern world. It was caused by the crash of the U.S. stock market in 1929 and did not end until the beginning of World War II. Unemployment in the U.S. was about 25% implying over 15 million Americans did not have a job. The men's unemployment rate was higher than women since most industries with "women's work" -such as domestic service or sewing- were not directly affected by the depression.

3 0
3 years ago
Southwest U's campus book store sells course packs for $14 each. The variable cost per pack is $12, and at current annual sales
Mumz [18]

Answer:

$23,000

Explanation:

current annual sales = 49,000 packs

Selling price of course packs = $14 each

variable cost per pack = $12

Earnings = $75,000

Contribution:

= current annual sales × (Selling price of course packs - variable cost per pack)

= 49,000 packs × ($14 - $12)

= 49,000 packs × $2

= $98,000

Fixed costs of producing the course packs:

= Contribution - Earnings

= $98,000 - $75,000

= $23,000

4 0
4 years ago
Kansas Enterprises purchased equipment for $60,000 on January 1, 2012. The equipment is expected to have a five-year life, with
Rudiy27

Answer:

(D) Annual depreciation will be $11000

And book value will be $38000

Explanation:

We have given Kansas purchased equipment for $60000

So Acquisition cost = $60000

Residual value = $5000

We know that annual depreciation is given by

Life time = 5 years

Annual depreciation expense =\frac{Acquisition\ cost-residual\ value}{life\ time}=\frac{$60000-$5000}{5}=$11000

Depreciation expense is the same every year under straight-line. Therefore, in 2013 the depreciation expense is $11,000

Book value is given by

Book value =  Acquisition Cost - Accumulated Depreciation

= 60000-2\times (110000)=$38000

The Book Value of the asset is therefore $38,000 after 2 years of service

5 0
4 years ago
Philip Morris expects the sales for his clothing company to be $670,000 next year. Philip notes that net assets (Assets − Liabil
shutvik [7]

Answer:

the ending cash balance is $330,300

Explanation:

The computation of the ending cash balance is shown below:

Ending cash balance = Opening cash balance + Profit

= $270,000 + (9% × $670,000)

= $270,000 + $60,300

= $330,300

We simply added the opening cash balance and the profit so that the ending cash balance could come

Hence, the ending cash balance is $330,300

7 0
3 years ago
Gross billings for merchandise sold by Crane Company to its customers last year amounted to $12730000; sales returns and allowan
Brilliant_brown [7]

Answer:

None of the above

Explanation:

Net sales is the difference between the total sales and the sum of the sales returns, sales discounts and allowances.

Selling and distribution cost or freight-out is a part of the company's operating expense and will not be used to determine a company's net sales.

Hence,

Net sales = $12,730,000 - $366,000 - $175,000

= $12,189,000

This is not part of the options given.

3 0
4 years ago
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