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denis-greek [22]
2 years ago
10

You have just received a windfall from an investment you made in a​ friend's business. She will be paying you $ 15 comma 555 at

the end of this​ year, $ 31 comma 110 at the end of next​ year, and $ 46 comma 665 at the end of the year after that​ (three years from​ today). The interest rate is 6.7 % per year. a. What is the present value of your​ windfall? b. What is the future value of your windfall in three years​ (on the date of the last​ payment)?
Business
1 answer:
Vilka [71]2 years ago
7 0

Answer:

Present value = $75,379.47

Future value is $91,567.97

Explanation:

a) Present value of cash flow is calculated as:

Present\ value = \frac{(15,555}{1.067} + \frac{(31,110}{(1.067)^2}) + \frac{(46,665}{(1.067)^3})

Present value = $14578.25 + $27,325.69 + $33475.53

Present value = $75,379.47

b) Future value of windfall is calculated as

Future\ value  = present\ value \times (1-r)^n

Future\ value  = 75379 \times (1+ 0.067)^3

Future value is $91,567.97

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NeX [460]

Answer:

If the special offer is accepted, the net operating income will decrease in $120,000

Explanation:

Giving the following information:

Total variable cost= $2,200,000

Fixed cost= $1,100,000

Based on management’s projections for next year, 950,000 calculators will be sold at the regular price of $15.00 each. A special order has been received for 230,000 calculators to be sold at a 60% discount off the regular price.

Because the company can't provide the 950,000 units and the 230,000 special offer, the offer will cannibalize sales from the 950,00 units.

Special offer sale price= 15*0.4= $6

Unitary variable cost= 2,200,000/1,100,000= $2 per unit

<u>First, we will calculate the net income without the special offer</u>:

Sales= 950,000*15= 14,250,000

Total variable cost= 950,000*2= (1,900,000)

Contribution margin= 12,350,000

Fixed costs= (1,100,000)

Net operating income= 11,250,000

<u>With the special offer:</u>

Sales= (230,000*6) + (870,000*15)= 14,430,000

Total variable cost= (2,200,000)

Contribution margin= 12,230,000

Fixed costs= (1,100,000)

Net operating income= $11,130,000

If the special offer is accepted, the net operating income will decrease in $120,000

7 0
3 years ago
An increase in the price of gasoline will
Brums [2.3K]

Answer:

Shift the gasoline supply curve to the right.

Explanation:

in economy , A shift to the right in supply curves indicates that the supply of the product  increased, a shift to the left indicates that the supply of the product decreased.

When the price of gasoline increases, the amount of profit that the sellers can obtain by selling the product also increased.  This encouraged them to supply more of that product in the market.

4 0
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The college tuition is $15,000 a year. Instead of going to college, Ron could take a full time job that pays $20,000. His health
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Answer:

the opportunity cost of attending college for one year is $33,000

Explanation:

The computation of the opportunity cost is shown below:

= Full time job + health and retirement benefits

= $20,000 + $5,000 + $8,000

= $33,000

hence, the opportunity cost of attending college for one year is $33,000

We simply added the above 3 items so that the correct value could come

And ignored the college tuition fees

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2 years ago
The central problem in product-oriented layout planning is?
algol13

Answer: The minimizing the imbalance in the workloads among workstations.

Explanation:

Workspace can inspire informal and productive encounters if it balances what three physical and social aspects.

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Tucker Corporation is planning to issue new 20-year bonds. The current plan is to make the bonds non-callable, but this may be c
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Answer:

The required rate of return will increase.

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