Answer:
PV(after-tax net return in 7th year) = 70.55 (Approx)
Explanation:
Given:
Number of year = 7
Pre-tax net returns (Fn) = $100
Growth rate = 4% = 0.04
Inflation = 3% = 0.03
Marginal tax rate = 30% = 0.3
Discount rate = 10% = 0.1
Computation:
Fn = Fo(1+g)ⁿ = 100(1.04)⁷
Fn = 131.6
Nominal net returns = 131.6(1.03)⁷
Nominal net returns = 161.85
After tax return = 161.85 (1 - 0.3)
After tax return = 113.30
After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%
PV(after-tax net return in 7th year) = 113.30
(1+0.07)⁻⁷
PV(after-tax net return in 7th year) = 70.55 (Approx)
Answer:
Break-even point in units= 33,333.33 units
Explanation:
<em>The break-even point (BEP) is the quantity of each product to be sold such that the business makes no profit or loss. </em>
The beak-even point can be determined as follows:
The Break-even point in sales = Total general fixed cost / Contribution per unit margin
Contribution per unit = Contribution margin ration × selling price
= 40%×11.25 =4.5
The break-even point (in unit) = 150,000/ 4.5
=33,333.33
break-even point in units= 33,333.33 units
Answer:
C. Open the Name manager, and click New
Explanation:
<span>The conclusion for this action should the Fed predicts inflation and wants slow the economy by decreasing money supply. Because the budget for these activities is significant, but you are in no hurry. You plan to retire in this house. As you are considering your options, you read that the Federal Reserve has abruptly decided to sell a significant quantity of government securities in the coming months.</span>
