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Novay_Z [31]
3 years ago
14

Calculate the present value of the after tax net returns to land in the 7th year if thereal pre-tax net returns to land today ar

e $250, real net returns to land are assumedto increase by 5% each year, inflation is 4%, the marginal tax rate is 20%, and thepretax risk adjusted discount rate is 10%.
a. 270.10
b. 216.08
c. 105.27
d. 163.84
Business
1 answer:
Aleks [24]3 years ago
5 0

Answer:

b. $216.08

Explanation:

Fn = Fo * (1+g)^n

Fn = $250*(1.05)^7

Fn = $250*1.40710

Fn = $351.775

Nominal net returns = $351.775 * (1.04)^7

Nominal net returns = $351.775 * 1.315932

Nominal net returns = $462.912

After tax return = Nominal net returns * (1 - 20%)

After tax return = $462.912 * (1 - 0.2)

After tax return = $370.33

After-tax, risk adjusted discount rate = 0.1*(1 - 0.2)

After-tax, risk adjusted discount rate = 0.1*0.8

After-tax, risk adjusted discount rate = 0.08

After-tax, risk adjusted discount rate = 8%

PV after-tax net return in 7th year = After tax return * (1+8%)^-7

PV after-tax net return in 7th year = $370.33 * (1+0.08)^-7

PV after-tax net return in 7th year = $370.33 * 0.583490

PV after-tax net return in 7th year = $216.08

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The correct answer is c. increases, the real exchange rate of the dollar appreciates, and US net capital outflow decreases.

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If theoretically, the propensity to consumption drops and the US citizen decide to save money, the new interest rate of equilibrium goes up. A higher interest rate attracts foreign investors that start bringing their money to US. In relative terms, the US dollar is appreciated as a consequence of the new streams of capital flow enter the country. If anything else is happening and in the international flows of capital are coming to US, then the net capital decreases

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Albert, a developmental psychologist, conducts research on children's emotional reactions to studying math in school. Albert is
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Answer:

Psycho-social

Explanation:

According to my research on studies conducted by various Psychologists, I can say that based on the information provided within the question Albert is most likely concerned with the children's Psycho-social development. Psycho-social is the study of an individuals thoughts and behaviors based on his/her social interactions.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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Mia received a credit card offer in the mail. The credit card has an annual percentage rate of 26%. What is the approximate mont
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Monthly interest rate = 2.16666667%

Explanation:

Given:

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A utilities consumer action panel could help resolve consumer complaints about high energy costs because the panel members are
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Explanation:.

The Importance of Training Employees: 11 Benefits

The Importance of Training Employees: 11 BenefitsFebruary 22, 2021

The Importance of Training Employees: 11 BenefitsFebruary 22, 2021As technology advances and workplace methods and strategies improve, there comes a need for employers and employees to align with these changes in terms of knowledge, skills, values and abilities. One of the best ways to enhance knowledge and skills is through training. Getting employees exposed to relevant and consistent training can help companies improve performance and increase results in the workplace. In this article, we explain the importance of training employees and provide a list of potential benefits.

What is the importance of employee training?

Training is important because it represents a good opportunity for employees to grow their knowledge base and improve their job skills to become more effective in the workplace. Despite the cost of training for employees, the return on investment is immense if it is consistent.

There are several reasons it is important for employers to initiate training programs for their employees, such as:

It improves skills and knowledge

Employee training programs help improve the knowledge and skills of employees to match the various changes in the industry. These improvements will positively affect the productivity of workers, which can increase the profits and efficiency of an organization. Some of the things employees may learn through training include work ethics, human relations and safety.

It satisfies the recommendations of performance appraisals.

When an organization's employee performance appraisals suggest the need for improvement on a particular subject or skill, training programs can be organized for staff members to help satisfy this requirement. Training can therefore address an identified problem area and work toward a solution.

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3 years ago
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