Answer: $80 million per year for 25 years
Explanation:
The option you should choose is one that will guarantee you the highest present value.
This means that you need to discount the annual payment of $80 million per year for 25 years to find the present value. As you did not include a rate, we shall assume a rate of 8% for reference purposes.
The annual payment is an annuity so the present value can be calculated by:
Present value of annuity = Annuity payment * Present value interest factor, rate, no. of years
= 80,000,000 * Present value interest factor, 8%, 25 years
= 80,000,000 * 10.6748
= $853,984,000
<em>The present value of the annual payment is more than the present value of the $850 million received today so the Annual payment should be taken. </em>
A company should look at the image of the celebrity, and the things they do outside of their job. Company’s don’t want to endorse an athlete or celebrity that could do something to jeopardize their image, and pull consumers away from their company
The internal growth rate is 7.97% Approximately
The internal growth rate is computed as shown below:
= ROA x ( 1 - payout ratio ) / [ 1 - ( ROA x payout ratio) ]
= 0.09 x ( 1 - 0.18 ) / [ 1 - ( 0.09 x 0.18 ) ]
= 0.0738 / 0.9262
= 7.97% Approximately
An internal growth rate (IGR) is the best degree of growth potential for a commercial enterprise with out acquiring outdoor financing. A firm's most inner increase rate is the extent of business operations that may maintain to fund and grow the corporation with out issuing new equity or debt.
The IGR assumes that operations can be entirely self-funded by way of the corporation's retained profits. In evaluation, the sustainable increase price (SGR) includes the effect of external financing, however the current capital structure is kept steady.
Learn more about internal growth rate here: brainly.com/question/25849702
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Answer:
He does not report any gross income as life insurance proceeds are exempted from tax.
Explanation:
As a rule life insurance proceeds to a beneficiary are not taxable, they are viewed as non taxable inheritance of the deceased to the beneficiary.
However if Ellie had instructed the insurance company to hold the funds for sometime before paying Jason, the interest earned during that period will be taxable.
The second step is the enforcement of the regulation.
Usually, the justice department in untied states will provide several workers from various agencies to make sure that the regulations created is being done.
These workers usually will be given a certain amount of power, such as giving warnings/punishment to the employers that is dare to break the rules.
