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
zaharov [31]
3 years ago
11

The net cash flows of Advantage Leasing for the next 3 years are $42,000, $49,000 and $64,000 respectively, after which the grow

th rate will be a constant 2% with a WACC of 8%. What is the present value of the terminal value?Select one:a. 51,822b. 55,967c. 59,259d. 60,444e. None of these
Business
1 answer:
liberstina [14]3 years ago
3 0

Answer:

$863,689.50

Explanation:

The computation of the present value of the terminal value is shown below:

The terminal value at the end of the third year is

=  Third year Cash flows × (1 + growth rate) ÷ (required rate of return - growth rate)

= $64,000 × (1 + 2%) ÷ (8% - 2%)

= $1,088,000

Now its present value is

= terminal value at the end of the third year ÷ (1 + rate of interest)^number of years

= $1,088,000 ÷ (1 + 8%)^3

= $863,689.50

This is the answer but the same is not provided in the given options

You might be interested in
Applying the concept of marginal costs, how would you, as a business owner, decide how much to produce?.
saveliy_v [14]

To calculate marginal cost, divide the change in production costs by the change in quantity. The purpose of analyzing marginal cost is to determine at what point an organization can achieve economies of scale to optimize production and overall operations.

<h3>What is marginal cost?</h3>

The marginal cost in economics is the change in total cost that occurs when the quantity produced is increased, or the cost of producing additional quantity.

According to the law of declining marginal utility, as consumption increases, the marginal utility obtained from each extra unit decreases.

Marginal cost is an important concept in economic theory because a corporation seeking to maximise profits will produce until marginal cost (MC) equals marginal revenue (MR) (MR). After then, the cost of creating an additional item will outweigh the money generated.

To know more about marginal cost follow the link:

brainly.com/question/11689872

#SPJ4

3 0
1 year ago
Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight off
Ksivusya [100]

Answer: $3000

Explanation:

Based on the information given, the amount of loan that Milly needs will be the addition of the down payment and the cash allowance and this will be:

= Down payment + Cash allowance

= $2500 + $500

= $3000

Molly needs a loan of $3000

4 0
3 years ago
Read 2 more answers
Jonathan Mfg. adopted a job-costing system. For the current year, budgeted cost driver activity levels for direct labor hours an
Hitman42 [59]

Answer:

C. $ 7,500

Explanation:

Estimated direct labor cost                                                       $ 100,000

Estimated direct labor hours                                                          20,000 hours

Predetermined rate per direct labor hours                  $ 5 per direct labor hour

Actual hours used on a job                                                             1,500 hours

Applied overhead based on the predetermined overhead

rate per direct labor hours

$ 5 per direct labor hours * 1,500 hours                                         $ 7,500

The information regarding machine hours is not relevant to the requirements of the question.  

4 0
3 years ago
At Haddon, Inc., the office workers are employed for a 40-hour workweek and are paid on either an annual, monthly, or hourly bas
levacccp [35]

Answer:

Employee        Salary          Hrs. Worked        Cumulative Taxable

                                                                         Wages as of Last Pay Period

King, M.      $135,200 (year)     40                  $132,600.00

Manera, E.     $6,500 (month)  40                  $76,500.00

Tate, S.          $3,900 (month)  48                  $45,900.00

Yee, L.            $12.50 (hour)     44.5               $27,675.13

Diaz, R.           $12.50 (hour)     48                  $14,778.96

Zagst, J.          $14.50 (hour)     52                  $24,703.02

(a) regular earnings,  

King, M. $135,200 / 52 weeks = $2,600    

Manera, E. $1,500 weekly salary    

Tate, S. $900      

Yee, L. $12.50 x 40 = $500        

Diaz, R. $12.50 x 40 = $500        

Zagst, J. $14.50 x 40 = $580

(b) overtime earnings,

King, M. $0    

Manera, E. $0  

Tate, S. [($900 / 40) x 8 x 1.5] = $270      

Yee, L. $12.50 x 4.5 x 1.5 = $84.38        

Diaz, R. $12.50 x 8 x 1.5 = $150                  

Zagst, J. $14.50 x 12 x 1.5 = $261

(c) total regular and overtime earnings,

King, M. $2,600    

Manera, E. $1,500  

Tate, S. $1,170      

Yee, L. $584.38        

Diaz, R. $650                  

Zagst, J. $841

(d) FICA taxable wages (the FICA taxes limit for 2020 is $137,700, so everyone will be taxed)

King, M. $2,600    

Manera, E. $1,500  

Tate, S. $1,170      

Yee, L. $584.38        

Diaz, R. $650                  

Zagst, J. $841

(e) FICA taxes to be withheld

King, M. $2,600 x 7.65% = $198.90    

Manera, E. $1,500 x 7.65% = $114.75      

Tate, S. $1,170 x 7.65% = $89.51          

Yee, L. $584.38 x 7.65% = $44.71            

Diaz, R. $650 x 7.65% = $49.73                      

Zagst, J. $841 x 7.65% = $64.34    

(f) net pay for the week ended

King, M. $2,600 - $198.90 = $2,401.10    

Manera, E. $1,500 - $114.75 = $1,385.25      

Tate, S. $1,170 - $89.51 = $1,080.49          

Yee, L. $584.38 - $44.71 = $539.67            

Diaz, R. $650 - $49.73 = $600.27                      

Zagst, J. $841 - $64.34 = $776.66    

3 0
3 years ago
Violations of security policies are considered to be a(n) __________ issue upon which proper disciplinary actions must be taken.
kari74 [83]

<u>Answer: </u>

Violations of security policies are considered to be a law enforcement issue upon which proper disciplinary actions must be taken.

<u>Explanation: </u>

  • The security policies put into place by the organization actually serve as the first wall of protection for the organization.
  • The organization makes it clear through its security policies what actions would be deemed as an attempt to breach the security and what actions are prohibited within and outside the premises of the organization as an employee of the organization:
4 0
3 years ago
Other questions:
  • A company that wishes to increase the quality of its products should opt for _____, a branch of management science that provides
    7·1 answer
  • The economy is growing far too quickly, as high aggregate demand is causing inflation. a. What fiscal policy should be pursued i
    14·1 answer
  • A company that makes baseball caps is underutilizing its resources. what does this mean?
    13·2 answers
  • Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.6 Return on assets (ROA) 3% Re
    9·1 answer
  • What does liquidity refer to?
    13·1 answer
  • A common advantage of a promotion is that
    14·2 answers
  • The following 2017 financial information pertains to Koosman Konsulting, established January 1, 2017. 1. Started company by sell
    10·1 answer
  • Batteries, Offshore Wind Lead Clean Energy Cost Cuts As Renewables by Mike Scott Batteries, Offshore Wind Lead Clean Energy Cost
    11·1 answer
  • In what ways are big businesses linked with sport
    15·1 answer
  • TRUE/FALSE. The technical and scientific characteristics of an industry may be more important than its structure in determining
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!