Answer:
Present value= $3,642,651.54
Explanation:
Giving the following information:
You have just won the lottery and will receive $530,000 in one year. You will receive payments for 25 years, and the payments will increase by 4 percent per year. The appropriate discount rate is 10 percent.
First, we need to calculate the final value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment= 530,000
i= 0.04 + 0.10= 0.14
n= 25
FV= {530,000*[(1.14^25)-1]}/0.14
FV= 96,391,538.43
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 96,391,538.43/ (1.14^25)
PV= $3,642,651.54
Answer:
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Answer:
4) Student loan forgiveness given to teachers if they teach in high poverty areas.
Explanation:
A subsidy is assistance from to government to the private sector or another public sector that aims at promoting production in the specific sector of the economy. Subsidies are in the form of cash donations, tax concessions, government purchase policies, or assumption of risk. The objective of subsidies is to lower the cost of production, thereby reducing the market price of outputs.
The most common types of subsidies are in the agricultural and manufacturing sectors. In agriculture, the government often subsidizes production by giving cash incentives to farmers. The subsidies help reduce the cost of food. In manufacturing, the government offers export subsidies to businesses to support them in increasing exports.
Other types of subsidies include loan guarantees, loans at reduced interest rates, and tax waivers.
Answer:
$70,840; $18.50
Explanation:
Variable manufacturing overhead:
= Budgeted direct labor-hours × Variable overhead rate
= 4,400 × $5
= $22,000
Total manufacturing overhead:
= Variable manufacturing overhead + Fixed manufacturing overhead
= $22,000 + $59,400
= $81,400
(a) cash disbursement for manufacturing overhead for September:
= Total manufacturing overhead - Depreciation
= $81,400 - $10,560
= $70,840
(b) Predetermined overhead rate for September:
= Total manufacturing overhead ÷ Budgeted direct labor-hours
= $81,400 ÷ 4,400
= $18.50
