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Anton [14]
3 years ago
9

Property taxes in a particular district are 4% of the purchase price of a home every year. If you just purchased a $250,000 home

, what is the present value of all the future property tax payments.
Business
1 answer:
avanturin [10]3 years ago
5 0

Answer:

Assume the interest rate used for discounting is 5%.

Then, the present value of all the future property tax payments is $200,000.

Explanation:

We have the annual property tax payment is calculated as: Purchased price * tax rate = 250,000 * 4% = $10,000.

The tax payment will form a perpetuity of $10,000 each ( that is: C = 10,000). We apply the formula for calculating present value of perpetuity with assumption that discount rate is 5% to come up with the answer as below:

PV = C/i = 10,000/5% = $200,000.

So, the answer is $200,000.

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​the employees of a company feel that rewards are fairly allocated. this illustrates _____.
Wittaler [7]
<span>Distributive Justice</span>
8 0
3 years ago
AG Inc. made a $85,000 sale on account with the following terms: 1/15, n/30. If the company uses the net method to record sales
neonofarm [45]

Answer:

$84,150

Explanation:

Given that

Sale amount = $85,000

Terms = 1% discount is given it payment is made within 15 days and the total credit period allowed is 30 days

The computation of the amount of account receivable that should be recorded is shown below:      

= Sale amount - sale amount  × discount rate given

= $85,000 - $85,000 × 1%

= $85,000 - $850

= $84,150

Simply we deduct the discount period from the sales amount so that the accurate value could come

7 0
3 years ago
Atlanta​, ​Inc., planned and actually manufactured 180,000 units of its single product in 2017​, its first year of operation. Va
steposvetlana [31]

Answer:

Net operating income= 1,080,000

Explanation:

Giving the following information:

Units produced= 180,000

Variable manufacturing cost was $ 17 per unit produced.

The variable operating​ (nonmanufacturing) cost was $ 10 per unit sold.

Planned and actual fixed manufacturing costs were $ 900,000. Planned and actual fixed operating​ (nonmanufacturing) costs totaled $ 360,000.

Atlanta sold 120, 000 units of a product at $ 44 per unit.

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

Unitary fixed overhead= 900,000/180,000= $5

Unitary production cost= 17 + 5= 22

Sales= 120,000*44= 5,280,000

COGS= 22*120,000= (2,640,000)

Gross profit= 2,640,000

The variable operating​ ocsts=  120,000*10= (1,200,000)

Fixed operating​ costs= (360,000)

Giving the following information:

Units produced= 180,000

Variable manufacturing cost was $ 17 per unit produced.

The variable operating​ (nonmanufacturing) cost was $ 10 per unit sold.

Planned and actual fixed manufacturing costs were $ 900,000. Planned and actual fixed operating​ (nonmanufacturing) costs totaled $ 360,000.

Atlanta sold 120, 000 units of a product at $ 44 per unit.

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

Unitary fixed overhead= 900,000/180,000= $5

Unitary production cost= 17 + 5= 22

Sales= 120,000*44= 5,280,000

COGS= 22*120,000= (2,640,000)

Gross profit= 2,640,000

The variable operating​ ocsts=  120,000*10= (1,200,000)

Fixed operating​ costs= (360,000)

Net operating income= 1,080,000

5 0
3 years ago
The _____ stage of the product life cycle is the longest stage, where sales peak and profit margins narrow. in this stage new us
nalin [4]

The maturity stage of the product life cycle is the longest stage, where sales peak and profit margins narrow. in this stage, new users or new uses may be added to extend the product life.

Introduction, growth, maturity, and decline are the four stages that make up a product's life cycle. Professionals in management and marketing use product life cycles to assist them to decide on advertising schedules, price points, expanding into new product markets, redesigning packaging, and more.

When sales reach their maturity stage, they start to slow down after a period of strong expansion. At this stage, businesses start lowering their prices in an effort to remain competitive against the escalating competition. The product life cycle's mature stage lasts the longest. At this time, the company has reached the peak of the demand cycle, sales growth is starting to slow down, and advertising tactics aren't doing anything to help.

To know more about product life cycle refer to:  brainly.com/question/17485582

#SPJ4

3 0
2 years ago
Product B has revenue of $39,500, variable cost of goods sold of $25,500, variable selling expenses of $16,500, and fixed costs
Kay [80]

Answer:

We should discontinue Product B

Explanation:

We should check if Product B generates a contribution or not:

We subtract from the sales revenues the variable cost:

revenue                                   39,500

variable cost of goods sold   (25,500)

variable selling expenses   <u>   (16,500) </u>

Contribution                              (2,500)

<em>As the contribution is negative, we should discontinue </em>Product B as is less expensevely to stop production than continue.

3 0
3 years ago
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