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Tom [10]
3 years ago
11

In the text, we supposed a college education raised a person's wage by $30,000 per year, from $40,000 to $70,000. Assume the rel

evant interest rate is 3%, there is no growth in wages, and you are expected to retire at 65 years old after you graduate high-school. (a): Suppose you are a 18 year old graduating high school senior deciding whether or not to go to college. What is the present discounted value of your labor earnings if you chose not to attend college
Business
1 answer:
gavmur [86]3 years ago
5 0

Answer:

$1,010,668

Explanation:

if you choose not to attend college, you should be working for 65 - 18 = 47 years

your expected annual salary is $40,000

the present value of your future earnings = $40,000 x PV annuity factor

PV annuity factor = = [1 - 1/(1 + i)ⁿ] / i = [1 - 1/(1 + 0.03)⁴⁸] / 0.03 = 25.2667

present value of future earnings = $40,000 x 25.2667 = $1,010,668

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The federal reserve system can do all of the following except:_______
Nana76 [90]

The Federal Reserve System can do all the given options except A. lender of last resort for consumers.

<h3>What does the federal reserve system do?</h3>

The federal reserve system of the United States is the central bank of the nation and as such, they engage in services like check clearing and regulating the money supply.

They also act as a lender of last resort to banks in order to ensure that they don't fail. The Fed does not lend money to consumers directly so this is not one of their roles.

Options for this question:

  • A. lender of last resort for consumers
  • B. regulation of the money supply
  • C. supplying currency
  • D. check clearing

Find out more on the roles of the Federal Reserve at brainly.com/question/14417722

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4 0
1 year ago
Cholula hot sauce, a mexican made chili-based sauce brand, is introducing a new hot sauce flavor and wants to use its owners’ un
Flura [38]

Since Cholula company is sampling the new sauce at a number of supermarkets in texas, where there are multiple market segments likely to enjoy hot sauces, then, the tactics employed is called <u>motivating</u><u>.</u>

<u />

<u />

<h3>What is motivating?</h3>

The term "motivating" is not limited to employee and employer, it is used by firm to induce potential and existing customer to buy their product.

In conclusion, the tactics employed by Cholula company is called <u>motivating</u><u>.</u>

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6 0
2 years ago
A company has three product lines, one of which reflects the following results: Sales $235000 Variable expenses 135000 Contribut
Zepler [3.9K]

Answer:

If management decides to eliminate this product line, the company’s net income will reduce by $22,000

Explanation:

<em>A product should be shut down if doing so would make the savings in fixed costs associated with the product to exceed the lost contribution. Other wise , the product should remain.</em>

<em>In a shut down decision , the following relevant cash flows should be considered:</em>

  1. <em>Lost contribution from the product to be shut down</em>
  2. <em>Savings in fixed directly attributable to the product under consideration.</em>

                                                                                                           $                                                                                            

Lost contribution from shut down                                        (100,000)

Savings in fixed cost (60% × 130,000)                                 <u>  78,000</u>

Net loss from shut down                                                      <u>  (22,000)</u>

Net loss from shut down = $(22,000)

If management decides to eliminate this product line, the company’s net income will reduce by $22,000

                     

3 0
3 years ago
When Shaleen first started at the manufacturing facility, it took her four hours to complete the task she can now accomplish in
tekilochka [14]

Shaleen in her first two months on the job, she not only learned to do her job more efficiently, but she has also saved the company money.

This is an example of (E) learning effects.

<h3>What are the learning effects?</h3>
  • The learning effect is the process by which education increases productivity and leads to greater earnings in economics.
  • In psychology and motor learning, the learning effect refers to the rapid improvements in performance that we witness when a person performs their first 5-10 tries at a new task.
  • As the learner becomes more familiar with the activity, these initial leaps in performance become smaller and smaller.
  • Learning effects are stronger when a technologically difficult task is repeated since there is more to learn about the task.
<h3>Solution -</h3>

As it is stated above as the learner becomes more familiar with the activity, these initial leaps in performance become smaller and smaller.

Therefore, this is an example of (E) learning effects.

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Complete question:

When Shaleen first started at the manufacturing facility, it took her four hours to complete the task she can now accomplish in 30 minutes. In her first two months on the job, she not only learned to do her job more efficiently, but she has also saved the company money. This is an example of

a. Multiple Choice

b. economies of scale.

c. lead strategy.

d. lag effects.

e. learning effects.

f. transition effects.

4 0
2 years ago
When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage:
Alchen [17]

Answer:

D) sales would be low, profits non-existent, and he would attract golf equipment innovators.

Explanation:

Generally during the introductory stage of a product or service;

  1. the sales are usually low since not a lot of customers know or trust you product or service,
  2. due to low sales and high costs, profits are usually very small or non-existent,
  3. many times innovators are the first ones to try your product, specially in a very conservative market, like golf equipment and related products.

7 0
4 years ago
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