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Alexeev081 [22]
3 years ago
6

Sam was injured in an accident, and the insurance company has offered him the choice of $49,000 per year for 15 years, with the

first payment being made today, or a lump sum. If a fair return is 7.5%, how large must the lump sum be to leave him as well off financially as with the annuity
Business
1 answer:
Eddi Din [679]3 years ago
4 0

Answer:

$464,968.53

Explanation:

Calculation to determine how large must the lump sum be to leave him as well off financially as with the annuity

Using Financial calculator to find the PRESENT VALUE (PV)

N 15 years

I/YR 7.5%

PMT $49,000 per year

FV $0

Hence;

PV= $464,968.53

Therefore how large must the lump sum be to leave him as well off financially as with the annuity is $464,968.53

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Using the following data, develop an allowance percentage for a job element that requires the worker to lift a weight of 30 poun
Volgvan

Answer:

While estimating standard time of doing a job, some extra allowances are provided on the basis of nature of work. In this connection, different factors, like monotony, light, awkwardness, muscular force required etc. are taken into consideration. Calculation of this allowance is shown below:

  1. Personal allowance is a basic allowance. It has been allowed for all jobs. It is fixed at 5%
  2. Basic Fatigue allowance of 4% is also common. It is allowed in all jobs.
  3. Standing: 0% allowance is required for standing in a slightly awkward position and further it will increase on the basis of awkwardness.
  4. Lifting: Any work requiring muscular or force energy will be provided lifting allowance. It will vary on the basis of weight lifted. Here 25 lbs. weight has been lifted. Hence, 4% lifting allowance has been provided.
  5. Bad light: It is available only when light is well below the recommended level. Here light is slightly below the recommended level. Hence, 0% allowance is required for in light that is slightly below recommended standards.
  6. Noise level: A continuous noise is common in production activities. For intermittent loud noises occurring a 2% allowance is provided.
  7. Monotony: As the monotony for the element is low for this work. No extra allowance is required. 0% is required for low monotony.

7 0
3 years ago
Which TWO of the following best describe the use and characteristics of discounted cash flow methodology?
konstantin123 [22]

Answer:

The correct answer is option 1 and 4.

Explanation:

Discounted Cash Flow Methodology attempts to assign present values to an investment's expected future cash flows. It is an effective way to evaluate and compare various investment options to one another. As fixed-income securities have fixed interest payments, DCF is an effective way to compare fixed-income securities. It is also used to calculate the current market values of these securities.

The project with positive NPV is accepted or higher NPV means the project is more lucrative.

8 0
3 years ago
A blue ocean strategy differs from a low-cost strategy in that
Tju [1.3M]
The focus of a blue ocean strategy is on lowering the economic value created, whereas a cost-leader focuses on increasing the economic value created.
6 0
2 years ago
What are the similarities and differences between marketing research and marketing intelligence systems?
pshichka [43]

Explanation:

similarities between marketing research and marketing intelligence systems

  • Marketing research and Marketing intelligence systems they both provide information about markets that help the small companies to study and analyze their sales and markets

differences between marketing research and marketing intelligence systems

  • Marketing intelligence is available information or data that small business partners used to study the businesses, political and competition.

Marketing intelligence system data gathered repeatedly over time.

  • Market Research is not existing data or information. Companies do a survey to collect marketing research data.

Marketing research data gathered at one particular point.

4 0
3 years ago
Jarrod receives a scholarship of $18,500 from Riggers University to be used to pursue a bachelor's degree. He spends $12,000 on
kodGreya [7K]

Answer:

Jarrod exclude from his gross income of $13,500

Explanation:

The following items which are excluded from the gross income are:

1. Tuition = $12,000

2. Books and supplies = $1,500

The total amount would be equal to

= $12,000 + $1,500

= $13,500

These items would be excluded because the deduction is allowed for these items. Whereas, the room and personal expenses are taxable. Hence, it would be included in the gross income

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3 years ago
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