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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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4 0
3 years ago
Our company can produce a product that incurs the following costs per unit: direct materials, $10; direct labor, $24, and overhe
kvasek [131]

Answer:

net incremental cost = $ 2.2

Explanation:

Data provided:

Direct material cost = $ 10  per unit

Direct labor cost = $ 24  per unit

Overhead cost = $ 16 per unit

thus,

the total cost of the product = $ 10 + $ 24 + $ 16 = $ 50

Now,

if bought from outside cost = $ 45

Overhead cost if bought from outside = 45% of the overhead cost

= 0.45 × $ 16 = $ 7.2

hence, the total cost if bought from outside = $ 45 + $ 7.2 = $ 52.2

since, the cost of product if bought from outside side is greater than the product is produced by own

therefore, the net incremental cost = $ 52.2 - $ 50 = $ 2.2

3 0
3 years ago
Which of the following least demonstrates using leadership and teamwork skills to accomplish a goal?
sleet_krkn [62]

Answer:

i would say asking a team member in a team meeting why their work is lagging behind schedule

Explanation:

4 0
3 years ago
Stoneheart Group is expected to pay a dividend of $3.11 next year. The company's dividend growth rate is expected to be 4.2 perc
lukranit [14]

Answer:

$43.19

Explanation:

Use dividend discount model(DDM) to solve this question; specifically constant dividend growth model.

P0 = D1/(r-g)

P0 = Current price

D1 = Next year's dividend = $3.11

r = investors' required return = 11.4% or 0.114 as a decimal

g = dividend growth rate = 4.2% or 0.042 as a decimal

P0 = 3.11/(0.114 - 0.042)

P0 = $43.19

Therefore, this stock price is $43.19

8 0
3 years ago
Sometimes a company can short-circuit the task of building an organizational capability in-house by:
maks197457 [2]

Answer:

C) either acquiring a company that has already developed the capability or else acquiring the desired capability through collaborative efforts with outsiders having the requisite skills, know-how, and expertise.

Explanation:

Organisational capability is defined as a companie's ability to manage its resources in meeting customer needs. It enables the business effectively gain advantage over competitors.

Organisational capability is what a business does very well that sets it apart from others, it is unique and not easily replicated.

Instead of building capability in-house, a company can acquire a company that has already developed the capability or else acquire the desired capability through collaborative efforts with outsiders having the requisite skills, know-how, and expertise.

4 0
3 years ago
Read 2 more answers
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