1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Butoxors [25]
3 years ago
5

A company would like to invest in a capital budget project that will be worth $500,000 in 40 years. How much should this company

invest today, assuming an average inflation rate of 2% and a 10% annual return
Business
1 answer:
egoroff_w [7]3 years ago
8 0

Answer:

Company needs to invest amount = $23000

Explanation:

Below is the calculation of the present value:

Given the future value, FV = $500000

Number of years, n = 40 years

Real interest rate = 10% - 2% = 8%

Present value = ?

Present value = FV (P/F, r, n)

Present value = $500000 (P/F, 8%, 40)

Present value = $500000 (0.046)

Present value = $23000

Company needs to invest amount = $23000

You might be interested in
Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing ha
k0ka [10]

Answer:

a. Determine the standard cost per unit for direct materials and direct labor.

standard direct labor rate = $20 x 30/60 minutes = $10 per faucet

standard direct materials rate = $1.80 x 2.5 lbs = $4.50 per faucet

b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.

direct materials price variance = (actual price x actual quantity) - (standard price x actual quantity) = ($1.95 x 13,000) - ($1.80 x 12,500) = $25,350 - $22,500 = $2,850 UNFAVORABLE

direct materials quantity variance = (standard price x actual quantity) -(standard price x standard quantity) = ($1.80 x 13,000) - ($1.80 x 12,500) = $23,400 - $22,500 = $900 UNFAVORABLE

total direct materials variance = direct materials price variance + direct materials quantity variance = $2,850 + $900 = $3,750 UNFAVORABLE

8 0
3 years ago
Recently, the cable television networks have bombarded viewers with a variety of shows based around teams that come in to redeco
allochka39001 [22]

Answer:

social integration. i hope this helps for you!

Explanation:

7 0
3 years ago
A legal firm would be considered a
Serjik [45]
A legal firm would be considered a service company because they provide legal services to clients and persons.
4 0
3 years ago
Read 2 more answers
What is a beneficiary? Question 50 options: The person who files insurance claims on your behalf The person who determines wheth
Zina [86]
A beneficiary in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example, the beneficiary of a life insurance policy is the person who receives the payment of the amount of insurance after the death of the insured.
6 0
3 years ago
Suppose buyers of fountain drinks are required to send $0.50 to the government for every fountain drink they buy. Further, suppo
Mekhanik [1.2K]

Answer:

d. All of the above are correct.

Explanation:

a. This tax causes the demand curve for fountain drinks to shift downward by $0.50 at each quantity.

b. The price paid by buyers is $0.30 per drink more than it was before the tax.

This is true as the difference between $0.50 and $0.20 is $0.30. The price paid by buyers is indeed $0.30 per drink more than it was before the tax.

c. Forty percent of the burden of the tax falls on the sellers.

This is true as $0.20 of $0.50 is 40% and this tax burden falls on the sellers.

8 0
3 years ago
Other questions:
  • A company CEO created an ethics policy, made ethical training mandatory and installed feedback systems for ethics violation. Whe
    13·1 answer
  • The practice of preparing budgets for each of several future periods and revising those budgets as each period is completed, add
    6·1 answer
  • Which term refers to the first level of a product, which depends on the customer value it generates?
    5·1 answer
  • Starset, Inc., has a target debt-equity ratio of 1.15. Its WACC is 8.6 percent, and the tax rate is 21 percent.
    13·1 answer
  • Why is it important to perform multiple trials in an experiment -- meaning that you include many test individuals or samples?
    13·1 answer
  • sells authentic Amish quilts on her website. Suppose Sally expects to sell 1 comma 800 quilts during the coming year. Her averag
    12·2 answers
  • The stockholders' equity of Oriole Company at July 31, 2021 is presented below: Common stock, par value $20, authorized 400,000
    11·1 answer
  • Describe three ways that a business can grant credit. Why might granting credit to other businesses be risky for a supplier?
    5·1 answer
  • Bismith Company reported: Actual fixed overhead Fixed manufacturing overhead spending variance Fixed manufacturing production-vo
    8·1 answer
  • Foundation for motivation
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!