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xxMikexx [17]
3 years ago
14

You have just turned 27 and may now spend a portion of the trust fund your parents established for you. The terms of the trust f

und allow you to withdraw 50 beginning−of−the−year cash flows of​ $40,000 each. An investment firm has offered to pay you cash for all of the fund today. If the rate they use to discount the cash flows is​ 14% per​ year, what is their offer price today for your pension​ fund?
Business
1 answer:
Dafna11 [192]3 years ago
4 0

Answer:

the present value is $325,249.13

Explanation:

The computation of the offer price today is given below:

It means we have to measure the present value

Given that

RATE is 14%

NPER is 50

PMT is $40,000

FV is $0

The formula is given below:

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

After applying the above formula, the present value is $325,249.13

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According to Larry Marder, the president of the McFarlane Companies, the company has changed and morphed and grown over the year
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Answer:

Unrelated Diversification

Explanation:

The reason is that the company has entered in a number of product offering that are unrelated to each other. This means the company has subtantially reduced its industry risk by managing a portfolio of products that are different from each other from industry perspective. This is an example of unrelated diversification because comics are unrelated to sports figures, music videos and motion pictures.

8 0
4 years ago
Which stage of economic development is a time of change from the traditional way of doings things in a society to moving toward
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Answer:

takeoff

Explanation:

Is the third stageof economic development in which rapid economic growth occurs, theeconomy diversifies from few industries to several industries.

5 0
4 years ago
Read 2 more answers
The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian ________ and the South Korean
Illusion [34]

Answer: GNP; GDP

Explanation:

<em>The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian </em><em><u>GNP </u></em><em>and the South Korean </em><em><u>GDP</u></em><em>. </em>

Gross National Product refers to the total amount of domestic production and foreign production that can be attributed to the residents of a nation.

This means that GNP includes the GDP and income earned by residents of the country in other countries but less the income earned by foreigners in the country. For Canada therefore, the value of goods produced by the Canadian company in South Korea will be added to the GNP.

Gross Domestic Product (GDP) on the other hand is simply the total final value of goods and services produced in a country regardless of if it was foreigners or residents doing the production. The value of what a Canadian-owned Tim Hortons produces in South Korea is therefore included in South Korea's GDP.

7 0
3 years ago
In an establishment that serves alcohol for on premise consumption and gets less than 50% of its gross receipts from alcohol sal
klemol [59]

Answer:

True

Explanation:

An on premise establishment is one in which goods and services are used accordingly within the grounds of the establishment.

In an establishment where alcohol is sold and its not 50% of gross receipts it is safe for a 16year ol to be a cashier in such establishment since alcohol like any other goods or service is taken or used accordingly in the establishment.

Cheers.

7 0
4 years ago
Glumhoff​'s Packaging Department had the following information at July 31. All direct materials are added at the end of the conv
katovenus [111]

Answer:

Explanation:

The total equivalent units of direct materials and conversion costs for the month has been computed and attached.

Note that the conversion cost for the ending work in process was calculated as:

= $35,000 × 28%

= $35,000 × 0.28

= $9,800

Check the attachment for further analysis.

6 0
3 years ago
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