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erastova [34]
3 years ago
11

Global Stores is downsizing and must let some employees go. Employees volunteering to leave are being offered a severance packag

e of $128,000 cash, another $139,000 to be paid in one year, and an annuity of $37,500 to be paid each year for four years with the first payment coming at the end of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) What is the present value of the total severance package, assuming an annual interest rate of 7%
Business
1 answer:
katen-ka-za [31]3 years ago
4 0

Answer:

$127,020

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 4 = $37,500

I = 7%

PV = $127,020

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

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The following costs result from the production and sale of 5,000 drum sets manufactured by Tight Drums Company for the year ende
hammer [34]

Answer and Explanation:

The preparation of the contribution margin income statement for the company is presented below:

                                 Tight Drums Company

                    Contribution margin income statement

                    For the year ended December 31, 2017

Sales (5,000 drums × $350)      $1,750,000

Less: Variable cost

Plastic for casing -$185,000

Wages of assembly workers $510,000

Drum stands $230,000

Variable selling costs

Sales commissions $175,000

Total variable cost                                         -$1,100,000

Contribution margin                                        $650,000

Less: Fixed cost

Fixed manufacturing costs

Taxes on factory $5,000

Factory maintenance $10,000

Factory machinery depreciation $70,000

Fixed selling and administrative costs

Lease of equipment for sales staff $10,000

Accounting staff salaries $60,000

Administrative management salaries $140,000

Total fixed cost                                                          -$295,000

Net operating income                                                 $355,000

Less: income tax expense at 25%                             -$88,750

Net income                                                                   $266,250

We simply deduct the variable cost and fixed cost from the sales revenue so that the net operating income could come and then deducted the income tax expense so that net income could arrive

4 0
3 years ago
Which of the following best explains why the media industry is characterized
Gwar [14]

Answer:

The answer is C. Government licensing allows media companies to have a near monopoly.

Explanation:

Not anyone can start a media company just because they want to. There are barriers to entry such as the large capital expenditure, staffing, and the government licensing.

Among these, the major contributor towards the marketto become an oligopoly is the government licensing process.

There are many things to consider and do during the licensing process and it is highly time consuming as well. Moreover, the costs involved is significantly high as well.

7 0
3 years ago
Read 2 more answers
The largest cattle rancher in a given region will be unable to have a __________ when sufficient numbers of smaller cattle ranch
stepladder [879]
<span>The largest cattle rancher in a given region will be unable to have a __________ when sufficient numbers of smaller cattle ranchers provide sources of competition.

Monoply 
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7 0
3 years ago
Which of the following is not a cost created by high​ inflation? A. Inflationary impacts are not distributed evenly across the​
dybincka [34]

Answer:

The correct answer is the option A: inflationary impacts are not distributed evenly across the population, therefore, inflation causes the economy to redistribute income across households.

Explanation:

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Therefore, that it is understandable that the correct answer is the option A, due to the fact that <u><em>a high inflation do not cause a redistribution in the income of the economy to the households, actually it causes the whole oppositve impact. </em></u>

7 0
3 years ago
Which option enables you to grammatical change
snow_tiger [21]

The option of becoming less ignorant and much more focused or thoughtful about your grammar.

5 0
3 years ago
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