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GalinKa [24]
3 years ago
8

If a landowner purchased a vacant lot six years ago for $25,000, assuming no income or holding costs during the interim period,

what price would the landowner need to receive today to yield a 10% annual return on the land investment?
a. $40,262.75.
b. $41,132.72.
c. $44,289.03.
d. $64,843.563.
Business
1 answer:
WITCHER [35]3 years ago
3 0

Answer:

c. $44,289.03

Explanation:

Given that: present value = $25000, rate = 10%, n = 6 years. Then the future value can be determined by:

FV = PV(1+r)^{n}

where: FV is the future value, PV is the present value, r is the rate and n is the number of years.

So that:

FV = 25000(1 + 0.1)^{6}

    = 25000(1.1)^{6}

    = 25000 x 1.771561

    = 44289.025

FV = 44289.03

The price that the landowner would receive today is $44,289.03.

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A.exclusive it’s not an intense level of distribution
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Which type of organizational purchase situation is characterized by high purchase importance and complexity, a large and evolvin
yaroslaw [1]

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New Task

Explanation:

The new task is a <em>company purchasing scenario where the purchaser initially buys  a products or services for the first time with no testing experience. </em>

An comprehensive search is performed to assess alternatives, however.  The higher the price or risk concerned, the more decision-making participants '  knowledge is required.  

For instance, an organization that purchases raw resources for the first time  to produce devices.

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Units Produced 20,000
Alexeev081 [22]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Units Produced 20,000

Units Sold 17,000

Unit Sales Price $ 240

Full Manufacturing Cost Per Unit $97

<u>Under the absorption costing method, the fixed manufacturing overhead is part of the product cost.</u>

Income statement:

Sales= (17,000*240)= 4,080,000

Cost of goods sold= (17,000*97)= (1,649,000)

Gross profit= 2,431,000

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Fixed General and Administrative Costs= (88,000)

Net operating income= 2,272,000

3 0
3 years ago
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at
tekilochka [14]

Answer:

a)  

$34.4

b)

$37.20

c) $59.57

Explanation:

Given:

Dividend paid = $2.15

Growth rate = 4% = 0.04

Required return = 10.5% = 0.105

Now,

a) Present value = \frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}

for the current price n = 1

thus,

Current price = \frac{\textup{Dividend paid}\times\textup{(1+growth rate)}^n}{\textup{(Required return-Growth rate)}}

=  \frac{\textup{2.15}\times\textup{(1 +0.04)}^1}{\textup{(0.105-0.04)}}

=  $34.4

b) Price in 3 years

i.e n = 3

= \frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}

=  \frac{\textup{2.15}\times\textup{(1 +0.04)}^3}{\textup{(0.105-0.04)}}

=

$37.20

c) Price in 15 years

i.e n = 15

= \frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}

=  \frac{\textup{2.15}\times\textup{(1 +0.04)}^{15}}{\textup{(0.105-0.04)}}

=  $59.57

4 0
3 years ago
How much money is wasted on fraudulent health products each year.
Lubov Fominskaja [6]

Answer:

60 billion

Explanation:

This might help you: The National Health Care Anti-fraud Association (NHCAA) conservatively estimates that 3 percent of all health care spending, or $60 billion, is lost to health care fraud.

Hope this helps :)

Have a nice day!

8 0
2 years ago
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