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Elan Coil [88]
3 years ago
7

A $600,000 state lottery prize is spread evenly over twelve years ($50,000 a year) (Alternative 1), or you may take a lump distr

ibution of $452,000 (Alternative 2). If you can earn 8 percent, calculate the present values of both alternatives. Use Appendix D to answer the question. Round your answers to the nearest dollar.
Business
1 answer:
scZoUnD [109]3 years ago
5 0

Answer and Explanation:

The computation of the present values of both alternatives is shown below:

For alternative one, the lump sum amount is

= Yearly payment × PVIFA factor at 8% for 12 years

= $50,000 × 7.5361

= $376,805

And, in the alternative 2, the lumpsum amount i.e. present value is $452,000

So as we can see that the alternative 2 is better as the lumspsum amount is high as compared with the alternative 1

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The bond of Tuckpeck is 8¼ 14. The bond traded for a high of 93.25 and closed at 93. The current yield of the bond to the neares
zhannawk [14.2K]

Answer:

8.9%

Explanation:

Calculation for what The current yield of the bond to the nearest tenth of a percent is:

Current yield of Bond=[(8+1/4)*10]/(93*10)

Current yield of Bond=(8.25*10)/930

Current yield of Bond=82.5/930

Current yield of Bond=0.089*100

Current yield of Bond=8.9%.

Therefore The current yield of the bond to the nearest tenth of a percent is 8.9%

7 0
3 years ago
Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations. Enter your answers as a pe
Gala2k [10]

Answer:

EAR = (1+APR/m)^m - 1 where m=compounding periods  

1.  0.116 = (1+APR/2)^2 - 1

(1+0.116) = (1+APR/2)^2

(1.116)^(1/2) = 1+APR/2

APR = [(1.107)^(1/2) - 1]*2

APR = [1.05214067501 - 1]*2

APR = 0.05214067501 * 2

APR = 0.10428135002

APR = 10.43%

2. 0.116 = (1+APR/12)^12-1

APR = [(1+0.116)^(1/12)-1]*12

APR = [1.116^(1/12) - 1] * 12

APR = [1.00918785692 - 1] * 12

APR = 0.00918785692 * 12

APR = 0.11025428304

APR = 11.05%

3. 0.093  = (1+APR/52)^52 - 1

APR = [(1+0.093)^(1/52) - 1] * 52

APR = [1.093^(1/52) - 1] * 52

APR = [1.0017115825  - 1] * 52

APR = 0.0017115825 * 52

APR = 0.08900229

APR = 8.90%

6 0
3 years ago
The negative relationship between the quantity of a good, service, or resource and the marginal utility obtained from each addit
BartSMP [9]

The negative relationship between the quantity of a good, service, or resource and the marginal utility obtained from each additional unit consumed in a given period of time describes diminishing marginal utility.

<h3>What is  diminishing marginal utility?</h3>

Marginal utility is the increase in utility as consumption is increased by one unit.

According to the law of diminishing marginal utility, as more of a product is consumed, utility increases at a diminishing rate. Economic theory suggest that consumption is maximised when marginal utility is equal to marginal revenue.

To learn more about  diminishing marginal utility, please check: brainly.com/question/13998299

#SPJ1

7 0
1 year ago
A mortgage where the interest rate fluctuates and is usually tied to an index; payment amount increases are capped for each peri
ivolga24 [154]

Answer:

an Adjustable-rate Loan (sometimes called an ARM).

Explanation:

A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a home mortgage with the rate of interest on the bond changed regularly depending on a measure that represents the financing expense to the applicant on the financial markets.

The loan can be given at the regular variable rate / base rate of the lender. There may be a direct and legally defined link to the underlying index, but where the lender does not provide any specific link to the underlying market or index the rate may be changed at the discretion of the lender.

5 0
3 years ago
When Coca-Cola purchased first a part and then all of Honest Tea, what would have been appropriate ways to help this change be s
tensa zangetsu [6.8K]

Answer:

The most applicable choices in the order of importance are

C, B then A. Of course, they have to be applied at various stages of the acquisition.

Explanation:

C should have occurred (if possible) before the acquisition. Usually, when there is a major acquisition such as the one described above, it comes with good and bad tidings.

In some cases, especially one involving a large and efficient system like Coca-Cola, many positions become redundant.

In other cases, people are worried if their compensation will be affected. There are usually questions such as:

  • Will my compensation be reviewed upwards or, downwards?
  • Will my insurance or 401K be affected adversely? e.t.c.

Thus, executing a survey of Honest Teas' employees to identify such sources of anxiety and conflict related to the acquisition with the goal to address them constructively, will help the change to be successful.

Option B is one strategy that ought to have been executed upon the conclusion and official announcement of the acquisition exercise. This is the most crucial and maybe the most important part of the acquisition/takeover process.

This is true especially if there is going to be changes in management,  communication styles, and the culture.  Other benefits of team building excercises are, it increases and or improves:

  • Productivity
  • Morale
  • Staff Motivation and
  • Communication all of which are critical to the success of any organisation.

Option C: On the balance of probability, it is expected that when a bigger company like Coca-Cola acquires a smaller one, the process comes with a lot of benefits. One of such benefits is the payroll upgrade.

After all is said and done, it will serve to boost the motivation and morale of the staff if Honest Tea began to use Coca-Cola's payroll which is likely to be more robust.

Because Cocal-cola is an older, more experience and more global company, it is more likely to have more efficient reimbursement systems. If these are inculcated into the Honest Tea process, with adequate training on how to use it, it will also serve to ensure homogeneity of systems and operations which is critical to the success of an acquisition.

Cheers!

3 0
3 years ago
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