Answer:
Correct option is 6.59
Explanation:
Selling price of stock at the end of the year is $6.99. Annual return rate is 6%. Price of stock at the beginning will be present value of stock valued at the end discounted at 6%. Computation is as shown below:
= $6.59
Therefore, Stock's price in the beginning of the year is $6.59.
Answer:
e. $153,156
Explanation:
From 9/1/14, he needs $50,000 every year for 4 years to fund the tuition fees. Therefore, present value of the amount needed at 9/1/14 using the Present value of annuity due formula
= 50,000 * {1+ (1/(1.05)^4) } / 0.05 * (1.05)
= $186,162
$186,162 is the amount needed after 4 years. Amount you need to invest today to have this amount in four years = $186,162/(1.05)^4 = $186,162/1.21550625 = $153,156.40
Answer:
The indifference point is 1,410 units
Explanation:
Giving the following information:
Machine A:
Fixed costs= $160,000
Unitary variable cost= $80
Machine B:
Fixed costs= $270,000
Unitary variable cost= $2
<u>First, we need to structure the total cost formula for each machine:</u>
Machine A= 160,000 + 80x
Machine B= 270,000 + 2x
x= number of units
<u>Now, we equal both formulas and isolate x:</u>
160,000 + 80x = 270,000 + 2x
78x = 110,000
x= 110,000/78
x= 1,410 units
The indifference point is 1,410 units
Answer:
See attached picture.
Explanation:
See attached picture for explanation.
