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marissa [1.9K]
3 years ago
14

Sparkling Water, Inc., expects to sell 3.7 million bottles of drinking water each year in perpetuity. This year each bottle will

sell for $1.46 in real terms and will cost $.82 in real terms. Sales income and costs occur at year-end. Revenues will rise at a real rate of 1.8 percent annually, while real costs will rise at a real rate of 1.1 percent annually. The real discount rate is 7 percent. The corporate tax rate is 25 percent. What is the company worth today?
Business
1 answer:
MrRa [10]3 years ago
3 0

Answer:

$39,345,664.93

Explanation:

The computation of the company worth today is as follows:

Present value of revenues after tax is

= $3,700,000 × 1.46 × (1 - 0.25) ÷ (0.07 - 0.018)

= $77,913,461.54

And, Present value of costs after tax is

= $3,700,000 × 0.82 × (1 -0.25) ÷ (0.07-0.011)

= $38,567,796.61

So, the company worth today is

=  $77,913,461.54 - $38,567,796.61

= $39,345,664.93

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givi [52]

Answer:

Answer A  =  $9,000  

Answer B  =  $6,400  

Answer C   =  $7,632  

Answer D   =  $54,000  

Answer E   =  $71,063

Explanation:

[ find attachments for complete solutions]

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5 0
3 years ago
Operating costs incurred by a manufacturing company become either (1) part of the cost of inventory to be expensed as cost of go
Lana71 [14]

Sales salaries are expensed at the time they are incurred.

In 2020, the average sales representative's salary was $73,500. In 2020, the average salaries for comparable jobs were $147,580 for a sales manager, $69,100 for an insurance salesman, $62,990 for a realtor, and $30,940 for a retail salesperson yes you can be a millionaire or billionaire as a seller.

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4 0
1 year ago
The opportunity cost of an action: can be determined by considering both the benefits that flow from as well as the monetary cos
yarga [219]
<h3>Hello there!</h3>

Your question asks what an opportunity cost of an action is.

<h3>Answer: D). is a subjective valuation that can be determined only by the individual who chooses the action.</h3>

The reason why answer choice "D). is a subjective valuation that can be determined only by the individual who chooses the action" is correct because an opportunity cost of an action is not the same for everyone.

An opportunity cost of an action is subjective, meaning that the action can be determined by someone's opinion, feelings, etc. Everyone thinks differently, therefore making everyone's opportunity cost of action different.

A opportunity cost of an action also is determined by the individual themselves, not anyone else. That's why the action is subjective, due to the fact that the decision on the action is determined by the individual personal opinions and feelings.

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8 0
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Answer:

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This differentiation is based on special religious events (e.g. religious holidays) that considered some goods as sacred, while profane had to do with everyday life.

Some modern marketing strategies try to build sacred brands. For example, Google has become our God of all knowledge and no one even dares to challenge that almost religious belief. Anyone can make their own coffee or buy coffee at any coffee shop, but Starbucks is different, it has built a sense of emotional connection with the public. It's not any coffee that we need or want.  

6 0
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Luda [366]

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5 0
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