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marin [14]
3 years ago
13

don draper has signed a contract that will pay him 80000 at the beginning of each year for the next 6 years plus an additional a

t the end of year 6 if 8% is the appropriate discount rate, what is the present value of the contract
Business
1 answer:
Nata [24]3 years ago
4 0

Answer:

$449,830

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.

Don draper will receive total 7 payments in 6 years time.

Formula for Present value of annuity is as follow

PV of annuity = P + P x [ ( 1- ( 1+ r )^-n ) / r ]

P = Payment = $80,000

r = rate of return = 8%

n = number of years = 6 years

PV of annuity = $80,000 + $80,000 x [ ( 1 - ( 1+ 8% )^-6 ) / 8% ]

PV of annuity = $80,000 + $369,830

PV of annuity = $449,830

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salantis [7]

Answer:

B. False.

Explanation:

Helen instructed Joseph during his active working hour does not matter if he is on his lunch break or not, so Joseph is entitled to workers compensation.

6 0
3 years ago
The Yamaha Aggressive Growth Fund has an expense ratio of 1.83 percent. If you invest $58,500 in this fund, what is the dollar a
astra-53 [7]

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$1070.55

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so if you invest $58,500 assuming no return this year, the fee deductible would be simply 1.83% of $58,500

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Hope this helps.

3 0
3 years ago
Suppose that marginal income tax rates are as follows:Income level Marginal tax rate $0–$10,000 10% $10,000–$50,000 20% Greater
Tatiana [17]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

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7 0
3 years ago
As part of the initial investment, Ray Blake contributes equipment that had originally cost $101,300 and on which accumulated de
Mrrafil [7]

Answer:

This is a repeat question on Brainly but here you go.

<h2><em>$51,500 </em></h2>

Whether original cost or replacing cost is given in the question but we considered that cost in which the partner give their consent

So, the equipment amount should be debited at <em>$51,500 </em> instead of the original cost or the replacing cost

4 0
3 years ago
Which of the following costs are not inventoriable? A : buying costs of a purchasing department B : selling costs of a sales dep
Drupady [299]

<u>Answer:</u>

<em>B) Selling costs of a sales department  are not inventoriable</em>

<em></em>

<u>Explanation:</u>

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3 years ago
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