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lorasvet [3.4K]
2 years ago
5

Suppose you are committed to owning a $203,000 Ferrari. If you believe your mutual fund can achieve an annual rate of return of

11 percent and you want to buy the car in 8 years on the day you turn 30, how much must you invest today
Business
1 answer:
liraira [26]2 years ago
7 0

Answer:

the present value is $88,087.08

Explanation:

The computation of the present value is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

$203,000 = Present value × (1 + 0.11)^8

So, the present value is $88,087.08

hence, the present value is $88,087.08

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Fiat money: a is currency backed by the gold in Fort Knox. b is currency from Italy. c has advantages over commodity-backed mone
Lapatulllka [165]

Answer:

Option D.

Explanation:

Fiat money refers to currency that is issued by the government and which is not backed by any physical commodity, such as gold or silver, but rather by the government that issued it.

The value of fiat money is gotten from the relationship that exists between supply and demand and the stability of the issuing government. The value is not based on the worth of a commodity backing it as is the case for commodity money.

Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro, and other major global currencies. One risk that fiat money faces is the printing of too many of a particular currency, which can contribute to hyperinflation.

3 0
3 years ago
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On January 1, year 1, a company grants 5,000 nonqualified stock options to an employee with a strike price of $3 per option and
Sedaia [141]

Answer:

$8,000

Explanation:

The following compensation cost shall be recognised in the accounts of the Company as at December 31, Year 1 in respect of employee share options:

5,000*8*1/5=$8,000

In the above calculation, 5000 represents number of share granted to employee,8 represent the fair value of the option at the grant dated and 1/5 represent first year of the 5-year requisite service condition for the exercise of share options.

4 0
3 years ago
pAn office building owner agrees to buy a minimum of 270 chairs and up to 440 chairs from a supplier. The price will be $85 per
erastova [34]

Answer:

The largest revenue the supplier can make under this deal is $24,151.2

Explanation:

Working file has been attached to help understand how the answer was derived. Some points to note in the sheet are:

  1. The sheet represents the following columns which are S. No., Chairs, Price, Total Revenue and difference in each revenue.
  2. As the no. of chairs rises the price is dropping by $0.2 in the entire order.
  3. However, at first this increase in order of chairs is beneficial even with the drop in the price of entire order.
  4. At the point, where chairs ordered are 348 and price is $69.4 the revenue is at its largest which is $24,151.2.
  5. After this point the increase in the no. of chairs is only decreasing the overall total revenue of the supplier.
Download xlsx
4 0
3 years ago
HELP ASAP !
nevsk [136]
I would think shoes because it’s the only one that can be produced.
5 0
3 years ago
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Consider Derek's budget information: materials to be used, $64,750; direct labor, $198,400; factory overhead, $394,800; work in
natita [175]

Answer:

Option (c) is correct.

Explanation:

Given that,

Materials to be used = $64,750;

Direct labor = $198,400;

Factory overhead = $394,800;

Work in process inventory on January 1, = $189,100;

Work in progress inventory on December 31, = $197,600

Firstly, we are calculating the manufacturing cost by adding direct material, direct labor cost and factory overhead. It is calculated as follows:

= Direct material + Direct labor + Factory overhead

= $64,750 + $198,400 + $394,800

= $657,950

Cost of goods manufactured determine the value of goods produced during a period of time. It refers to the cost that is incurred to convert the raw material into the finished goods.

Therefore, the cost of goods manufactured is calculated as follows:

= Manufacturing cost + Opening work in process - Closing work in in process inventory

= $657,950 + $189,100 - $197,600

= $649,450

3 0
3 years ago
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