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aleksandr82 [10.1K]
3 years ago
14

Steve Smith will receive $82,870 on 5 years from now, from a trust fund established by his father. Assuming the appropriate inte

rest rate for discounting is 10% (compounded semiannually), what is the present value of this amount today? (Round factor values to 5 decimal places, e.g. 1.25124. Round answers to the nearest whole dollar, e.g. 5,275.)
Business
1 answer:
sweet-ann [11.9K]3 years ago
7 0

Answer:

$50,875

Explanation:

The computation of the present value is shown below:

Given that

NPER = 5 × 2 = 10

RATE = 10% ÷ 2 = 5%

PMt = $0

FV = $82,870

The formula is shown below:

= -PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $50,875

Hence, the present value is $50,875

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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What was created to reform and to store confidence in the stock market by providing a means to monitor the market and to enforce
Vaselesa [24]

<u><em>Securities and Exchange Commission is the answer that you are looking for</em></u>

<em><u />Hope this helps :)</em>

7 0
3 years ago
Which of the following definition below describes a wall opening
Tcecarenko [31]
I didn't find the answer for an expression for business regarding an opening wall. The one I know is an opening at least 30"" high and 18" wide in a wall or partition through which people may fall
8 0
3 years ago
The Sedgwick Company estimates sales of a new product at 5,000 units and $3.00 per unit. Management feels the sales quantity is
Soloha48 [4]

Answer:

B) $12,825

Explanation:

In order to calculate the worst case scenario of sales first we need to calculate the worst case for sales of units.

The Company estimates that 5,000 units will be sold with a 10 percent plus-or-minus range. So, let calculate the worst case for the sale of units, in this case being 90% of the 5,000 unit estimate. Calculate 90% of 5,000, and this gives us 4,500 units as the worst case scenario.

To calculate the the worst case scenario for price, lets use the $3.00 per unit estimated by the Company, and apply the same concept, however, taking into account that sales price has a 5 percent plus-or minus range. So we caclulate %95 of $3.00, and this gives us $2.85 as our worst case scenario for price.

Now, we take our worst case scenario for amount of units and price:

4,500 units x $2.85 = $12,825

$12,825 is the total dollar amount for the worst case scenario of this product.

5 0
4 years ago
The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $24,000,
ra1l [238]

Answer:

36.26%

Explanation:

Simple rate of return:

return/investment

<u>return:</u>

In this case, it will be the cost saving for the new machine: 161,000

<u>investment</u>

We will decrease the investment by the recovery from the old machine.

468,000 new machine - 24,000 salvage value of new   = 444,000

<u>Then, proceed to calculate:</u>

161,000/444,000 = 0.3612 = 36.26%

Consideration:

Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.

5 0
3 years ago
The Ritz-Carlton Hotel trains each employee to note the likes and dislikes of regular customers and record this information into
Hoochie [10]

Answer:

The correct answer is: Gap 1

Explanation:

The Gap Model of Service Quality is also referred to as Customer Service Gap Model or sometimes the 5 Gap Model. It is commonly used by businesses to understand and measure customer satisfaction. According to the model, there are five major satisfaction gaps that companies need to take into consideration.

The given scenario is an example of Gap 1 of the Gaps Model of Service Quality. It is called the 'knowledge gap' which is the difference between customer's expectations and the company's provision of that service. This gap usually takes place as a result of the management's lack of knowledge and understanding about the customer's expectations.

 

 

 

8 0
4 years ago
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