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3 years ago

In a contingent contract

Business

1 answer:

Korvikt [17]3 years ago

7 0

Answer:

C. the payoffs are dependent upon another variable, such as revenue or profit.

Explanation:

Contingent contracts are one of the types of contracts in which the promisor offers the responsibility only when the distinct conditions are satisfied. It works on the occurrence or non-occurance of the specific event. It relies on the happening of an unpredictable event. The contingent contract becomes void in the case when the happening of the event grows impossible.

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Briggs Excavation Company is planning an investment of $132,000 for a bulldozer. The bulldozer is expected to operate for 1,500

nevsk [136]

Solution and Explanation:

The yYearly Equal Cash Inflows = $(110-44-28) * 1500-8000$ = 46000

Present Value of Inflows at the rate of 10% = $46000 * \text { PVIFA( } 5 \text { years }, 10 \%)$ = 46000 multiply with 3.791 = 174386

NPV = 174386 minus 132500 = 42386

Briggs must make an investment in the project as it generates additional wealth and NPV is positive

For NPV = 0, PV of inflows = 132500

PV Of Inflows = Annual Cash Flow multiply with 3.791

Annual Cash Flow = 132500 divide by 3.791 = 34951.20

So, Hours = $(34951.20+8000) /(110-46-28)$ = 1193.08 hours

3 0

3 years ago

OceanGate sells external hard drives for $200 each. Its total fixed costs are $30 million, and its variable costs per unit are $

chubhunter [2.5K]

Answer:

50%

Explanation:

Sales at strong state = 2 million

Sales in Recession = 1 million

% Decline = $\frac{2-1}{2}$ *100 = 50%

7 0

3 years ago

Read 2 more answers

Which of these is not considered for deduction of federal income tax?

Lina20 [59]

Answer:

A. interest earned from state bonds

Explanation:

Since this is about the federal level tax, and the bonds in the statement are state bonds, they are not taxable at federal level. Everything mentioned in other examples (prizes, awards, commisions...) is taxable, no matter if it goes into earned or non-earned income.

However, these bonds can be taxable at state level, but that is irrelevant for this question.

7 0

4 years ago

The following information relates to Schmidt Sausage Co.'s defined benefit pension plan during the current reporting year: ($ in

pav-90 [236]

Answer:

400 dollars is expected on the year and return the asssests as 40 actual return is actually 32 but then u add a little and get 60 so then you lose 8 dollars because your mom wanted u to buy something for her then retiree from your job and get 9 dollars of benefit that you need the amount of a pension plens assest a fair in december 33

Explanation:

3 0

3 years ago

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. Cost

Zarrin [17]

Answer:

Cash paid for merchandise is $236,800

Explanation:

Particulars Amount $

Cost of goods sold 243,000

Add: Merchandise inventory, December 31 72,700

Less: Merchandise inventory, January 1 -71,800

Purchases during the period 243,900

Add: Accounts payable, January 1 69,700

Less: Accounts payable, December 31 -76,800

Cash paid for merchandise 236,800

5 0

3 years ago