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shutvik [7]
3 years ago
12

Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 17 years. To assess the value of the

firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 8.0 percent, what is the present value of this liability
Business
1 answer:
Lana71 [14]3 years ago
6 0

Answer:

$202,701,713.58

Explanation:

Present value of this liability = Value of liability / ((1+r)^t)

Present value of this liability = $750 million / ((1+0.08)^17)

Present value of this liability = $750 million / (1.08)^17

Present value of this liability = $750 million / 3.7000180548

Present value of this liability = $202,701,713.5840815

Present value of this liability = $202,701,713.58

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Company C has a machine that, working alone at its constant rate, processes 100 units of a certain product in 5 hours. If Compan
r-ruslan [8.4K]

Answer:

Therefore the constant rate of new machine should be 30 units per hour.

Explanation:

Given that,

Company C has a machine that, working alone at its constant rate.

In 5 hours it produced 100 units certain product.

In 1 hour it produced (100÷5) units certain product.

                                     =20 units.

So,the constant rate of this machine is 20 units per hours.

Company C buys a new machine.

If two machine are working together,

In 2 hours, they produces 100 units.

In 1 hour, they produces (100÷2) units=50 units.

The constant rate of both machines is 50 units per hours.

Since first machine produces 20 unit per hour.

Then, the new machine produces =(50-20) =30 units per hour.

Therefore the constant rate of new machine should be 30 units per hour.

7 0
3 years ago
Why do you think it is important to do what is right even when no one is looking
kirill115 [55]

It's important because if you were to get used to doing "something wrong", you might as well go into the habit until you get caught. Besides, it's best to do the right thing.

5 0
4 years ago
A farm equipment manufacturer has already spent $3 million in research and development to design a new model of tractor. To prod
lina2011 [118]

Answer:

$20,000

Explanation:

Data provided in the question:

Amount spent on research and development = $3 million

Rent = $20 million = $20,000,000

Materials and wages = $10,000 per tractor

Number of tractors to be sold = 2,000

Now,

The lowest price will be when the company attains the break-even

thus,

At break-even point

Total cost = Total revenue

let the lowest cost be 'x'

therefore,

2,000x = $20,000,000 + ( $10,000 × 2,000 )

or

2,000x = $20,000,000 + $20,000,000

or

2,000x = $40,000,000

or

x = $20,000

6 0
3 years ago
You manage an equity fund with an expected risk premium of 13% and a standard deviation of 44%. The rate on Treasury bills is 6.
Nady [450]

Answer and Explanation:

The computation of the expected return and the standard deviation is given below:

the expected return is

= $90,000 × 13% + $60,000 × 6.6%

= $15,660.00

And,

standard deviation of return is

= $90,000 × 13% × 44% + $60,000 × 6.6%

= $5,148 + $3,960

= $9,108.00

In this way it should be calculated

8 0
3 years ago
Under variable costing income statements, product cost would include Direct materials only Direct materials, direct labor and fi
pantera1 [17]

Answer:

Direct materials and direct labor.

Explanation:

A variable cost is the one that vary depending on the level of production or sales. The cost increase or decrease according to the level of volume change.

The variable costing charges only direct costs (material, labour and variable overhead costs) into the cost of a product. It is lower than the cost calculated under absorption costing, that also include fixed manufacturing overhead.

Fixed manufacturing overhead is considered as a periodic cost and charged from the periodic gross profits.

4 0
3 years ago
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