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3 years ago

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A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of th

is perpetuity on the date that it is purchased, given that the interest rate is 11%

1 answer:

Oksana_A [137]3 years ago

8 0

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Rico Petricelli Industries invests $960,000 in plant assets with an estimated 10-year service life and no salvage value. These a

Nesterboy [21]

The payback period for this Rico Petricelli Industries' investment is 6 years.

Data and Calculations:

Cost of investment in plant assets =$960,000

Estimated useful life = 10 years

Estimated salvage value = $0

Annual depreciation = $96,000 ($960,000/10)

Annual net income = $64,000

Annual cash net inflow = $160,000 ($64,000 + $96,000)

Payback period = 6 years ($960,000/$160,000)

Thus, to compute the payback period as 6 years, add the annual depreciation to the annual net income to obtain the annual cash net inflow. Then divide the cash outlay ($960,000) by the product above.

Learn more: brainly.com/question/17109529

5 0

3 years ago

janie curtis borrowed $22,000 from a bank at an interest rate of 9% compounded monthly. this loan is to be repaid in 36 equal mo

Margaret [11]

Answer:

Explanation:

Given:

PV = $22,000

r = 9% /12 = 0.09/12 compounded monthly

n = 36

we need to find the payment per month:

= $\frac{rPV}{1 - (1+r)^{-n} }$

= $\frac{0.0075*22000}{1 - (1+0.0075)^{-36} }$

= $ 699,59

Hence, after 20th payment, she already paid:

$699,59 * 20 = $13,991.8

After we find out the Future value:

FV = PV $(1+i)^{n}$

=$22,000( $(1+0.0075) ^{36}$

= $28,790.20

At the end, the total amount she must pay at that time is:

FV - The amount she has already paid

= $28,790.20 - $13,991.8

=$14,794.4

Hope it will find you well.

8 0

3 years ago

Best Value Hardware Stores, a national chain, has established strict policies about the conditions under which a customer can re

TiliK225 [7]

Answer:

business rules

Explanation:

Business rules define how a business will execute a certain process. For example, establishes the conditions where products can be delivered without any extra charge or fee: if the purchase amount is over $500, or within a 5 mile radius.

It establishes the parameters at which the business will operate. An employee should always be able to determine if a business rule allows or not a process to be performed, no gray areas should exist. Following with our previous example, if the purchase adds up only $450, then a delivery fee should be charged, or if the customer lives 7 miles away.

7 0

3 years ago

What are some strategies employees employed to limit turnover?

yan [13]

Seven main reasons why employees leave a company:

<span>>Employees feel the job or workplace is not what they expected.
>There is a mismatch between the job and person.
>There is too little coaching and feedback.
>There are too few growth and advancement opportunities.
>Employees feel devalued and unrecognized.
>Employees feel stress from overwork and have a work/life imbalance.
<span>>There is a loss of trust and confidence in senior leaders.

Here are some </span></span>Retention Methods:

><span>Training
></span><span>Mentoring
></span><span>Instill a positive culture
></span>Use communication to build credibility<span>
></span>Show appreciation via compensation and benefits<span>
></span>Encourage referrals and recruit from within<span>
></span>Coaching/feedback<span>
></span>Provide growth opportunities<span>
></span>Make employees feel valued<span>
></span><span>Lower stress from overworking and create work/life balance
></span><span>Foster trust and confidence in senior leaders

Hope this helps!</span>

6 0

3 years ago

The manager of a certain division at Alpha Manufacturing is evaluated on how efficiently the division uses equipment, buildings,

kumpel [21]

Answer:

Investment center

Explanation:

Investment center is a section of an organization that make use of the amount of capital at their disposal to earn more profit for the company. Their main aim is to generate more revenue for the organization.

This section of the company is solely responsible for the amount of money generated, the costs incurred during the production process and the various benefits realized.

They are accessed according to the amount of money brought into the company through various investments.

In the scenario described above, the manager of a particular section of Alpha manufacturing was evaluated on how the equipments, building and other assets were used to generate profit because they were considered as an investment center.

5 0

4 years ago