1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alexandra [31]
3 years ago
6

Your aunt has promised to give you $5,000 when you graduate from college. You expect to graduate three years from now. If you sp

eed up your plans to enable you to graduate two years from now, the present value of the promised gift will: Multiple Choice be less than $5,000. remain constant. decrease. Incorrect equal $5,000. increase
Business
1 answer:
ikadub [295]3 years ago
3 0

Answer:

The present value of the promised gift will:

be less than $5,000.

Explanation:

The present value of $5,000 to be received in three years' time from today is less than $5,000 received.  This is explained by the time value of money concept.  If the $5,000 gift is discounted to today's value, using a discount factor of 0.751 (10% in three years' time), it would be $3,755 ($5,000 * 0.751).  This means that $5,000 received in year 3 is less than $5,000 received today.

You might be interested in
Determine whether each of the following topics would more likely be studied in microeconomics or microeconomics.
Jlenok [28]

Answer:

<u>The effect of government regulation on a monopolist's production decisions</u>

Explanation:

The effect of a large government budget deficit on the economy's price level

The superavit or deficit of the government is a macroeconomics subject.

The money market is also macroeconomics.

The impact of regulation or specifit taxes or tax extemption on a monopolist's production will be part of microecnomics, because it will impact on which level the monopolist's production finds equilibrium after the legislation.

4 0
3 years ago
Account analysis, high-low. Luwak Coffees wants to find an equation to estimate monthly utility costs. Luwak has been in busines
Inessa [10]

Question Completion:

See attached.

Answer:

Luwak Coffees

1. Water bill is fixed.  Electricity bill is variable.  Telephone bill is mixed.

2. High-Low method:

Water bill = $120 + 0q

Electricity bill = $0.3q

Telephone bill = $140 + $0.02q

where q = the quantity of each cost consumed.

3. Water bill = $120 + 0q

Electricity bill = $0.3q

Telephone bill = $140 + $0.02q

= $260 + $0.32q

4. No solution.  There is no relationship with machine hours, employees, and units with utility bills.

Explanation:

a) Data and Calculations:

Month           Electricity Bill    Kilowatt Hours Used

January            $ 720                       2,400        

February          $ 840                       2,800

March             $1,098                       3,660

April                  $ 810                       2,700

May                 $1,176                       3,920

June               $1,248                       4,160

July                $1,044                       3,480

August           $1,194                       3,980

September   $1,260                       4,200

October        $1,230                       4,100

November    $1,188                        3,960

December  $1,266                        4,220

Telephone Bill $184.

Low cost = Jan  $ 720                2,400

High cost = December  $1,266         4,220

High cost = December  $1,266         4,220

Low cost = Jan                $ 720         2,400

Difference =                     $546         1,820

Variable cost per unit = $546/1,820 = $0.3 per kwh

Fixed cost, using December's figures:

Variable cost = $1,266

Fixed cost = $0 ($1,266 - 4,220 * $0.3)

Telephone bill:

High, June $197.60     2,880

Low, April     178.20      1,960

Difference $18.40        920

Variable cost = $18.40/920 = $0.02

Fixed cost = Total cost - Variable cost

= $197.60 - (2,880 * $0.02)

= $140

Download docx
4 0
3 years ago
offers a 6.3 percent bond with a current market price of $767.50. The yield to maturity is 8.49 percent. The face value is $1,00
musickatia [10]

Answer:

9.25 years

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:

According to given data

Assuming the Face value of the bond is $1,000

Coupon payment = C = $1,000 x 6.3 = $63 annually = $31.5 semiannually

Current Yield = r = 8.49% / 2  = 4.245% semiannually

Market value = $767.50

Market Value of the Bond = $31.5 x [ ( 1 - ( 1 + 4.425% )^-n ) / 4.425% ] + [ $1,000 / ( 1 + 4.425% )^n ]

Market Value of the Bond = $31.5 x [ ( 1 - ( 1 + 4.425% )^-n ) / 4.425% ] + [ $1,000 / ( 1 + 4.425% )^n ]

n = 18.53 / 2

n = 9.25 years

7 0
3 years ago
Read 2 more answers
2. Alex, Becky, Cindy, Deanna and Elias form a general partnership, Glorious Jeans, to manufacture coffee-colored clothing. Alex
kari74 [83]

Answer:

Under the UPA ( uniform partnership act ) the partners share the profits of the business according to their contributions towards the business ( mostly financial contribution)

The UPA is used to address the issues of profit and loss sharing in a business partnership based on financial contribution towards the business and not based on service rendered to the business hence it won't work in this situation

Explanation:

Under the UPA ( uniform partnership act ) the partners share the profits of the business according to their contributions towards the business ( mostly financial contribution), the primary purpose of the uniform partnership act to to address certain in-formal or formal issue that was not addressed under the business agreement reached between the partners,

The reason why the UPA might not govern the sharing of the profits is because of the involvement of a partner who did not contribute towards the capital but contributes in terms of service. The UPA is used to address the issues of profit and loss sharing in a business partnership based on financial contribution towards the business and not based on service rendered to the business hence it won't work in this situation

4 0
3 years ago
Cost of Direct Materials Used in Production for a Manufacturing Company
strojnjashka [21]

Answer:

$855,000

Explanation:

The Raw Materials T - Account can be used to determine the cost of direct materials used in production using the missing balance technique as follows :

Raw Materials T - Account

Debit :

Beginning Balance                                               $279,000

Purchases                                                             $828,000

Total                                                                     $1,107,000

Credit :

Ending Balance                                                    $252,000

Transferred to Production (<em>Balancing figure</em>)     $855,000

Total                                                                     $1,107,000

3 0
3 years ago
Other questions:
  • Exercise 9-1 Classifying liabilities LO C1 The following items appear on the balance sheet of a company with a one year operatin
    10·1 answer
  • Cost-push inflation occurs when:
    7·1 answer
  • On November 1, 2018, Master's Co. borrows $500,000 from its bank for five years at an annual interest rate of 10%. According to
    14·1 answer
  • True or false. the consumer sector is the largest part of the macroeconomy.
    5·1 answer
  • A stock just paid an annual dividend of $2.8. The dividend is expected to grow by 10% per year for the next 4 years. The growth
    11·1 answer
  • POINTS!!!!!!!!!!!!!! BRAINLIEST AND 20+ POINTS!!!
    7·2 answers
  • In 2019, Bonita Industries sold 3000 units at $1000 each. Variable expenses were $700 per unit, and fixed expenses were $780000.
    13·1 answer
  • Inventory items with a cost of $3090 were excluded from ending inventory. These goods were in transit from Flores company to Bar
    9·1 answer
  • ABC Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $34 Variable
    10·1 answer
  • Madison Corporation purchased 40% of Jay Corporation for $300,000 on January 1. On June 20 of the same year, Jay Corporation dec
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!