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
xxMikexx [17]
2 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]2 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

You might be interested in
Which of these government policies pursues the economic goal of equity?
Fudgin [204]

"Providing welfare benefits" government policies pursues the economic goal of equity.

<u>Option:</u> B

<u>Explanation:</u>

To ensure economic stability the government offers welfare benefits for the vulnerables. Welfare benefits are federal programs supported by the government for the families and individuals who need such assistance. Welfare benefits include reimbursement for unemployment, food stamps and support for health care. There seem to be six significant welfare programs in the United States. These include

  • Temporary Assistance for Needy Families (TANF),
  • Medicare,
  • Supplemental Nutrition Assistance Program (SNAP or food stamps),
  • Supplemental Security Income (SSI),
  • Earned Income Tax Credit (EITC), and
  • Housing Assistance.
4 0
3 years ago
Read 2 more answers
Taylor Company has current sales of 1,000 units, which generates sales revenue of $190,000, variable costs of $76,000 and fixed
Leya [2.2K]

Answer:

The change in net operating income after the changes by $14,200

Explanation:

For computing the change in net operating income, first, we have to compute the contribution per unit which is shown below:

Contribution per unit = Selling per unit - variable cost per unit

                                   = $190 per unit - $76 per unit

                                   =  $114 per unit

where,

The selling per unit = (Sales revenue ÷ number of units)

                                = ($190,000 ÷ 1,000 units)

                                = $190 per unit

The variable cost per unit = (variable cost ÷ number of units)

                                           = ($76,000 ÷ 1,000 units)

                                           = $76 per unit

Now the change in operating income equals to

= (increased sales units × contribution per unit) - advertising cost

= (300 units × $114 per unit) - $20,000

= $34,200 -$20,000

= $14,200 increase

7 0
3 years ago
As winner of a breakfast cereal competition, you can choose one of the following prizes: a. $100,000 now.
Shkiper50 [21]

answer

<em>c </em><em> </em><em>i </em><em>don't </em><em>need </em><em>to </em><em>explain </em><em>I'd </em><em>take </em><em>c</em>

7 0
3 years ago
The market price of Friden Company's common stock increased from $15 to $18. Earnings per share of common stock remained unchang
WINSTONCH [101]

Answer: Option (C) is correct.

Explanation:

Given that,

Old market price of stock = $15

New market price of stock = $18

Here, we assume that EPS be $5.

So,

Price-earning ratio at old price = \frac{Market\ Price}{EPS}

                                                   =  \frac{15}{5}

                                                   = 3

Price-earning ratio at New price = \frac{Market\ Price}{EPS}

                                                   =  \frac{18}{5}

                                                   = 3.6

Hence, price-earnings ratio increases.

7 0
3 years ago
You just made the last monthly payment on a 30 year mortgage -- the house is yours! In your joyous moment, you calculate how muc
makkiz [27]

Answer:

$112,807

Explanation:

To calculate the amount of money you borrowed, you have to use the formula to calculate the present value:

PV=FV/(1+r)^n

PV= pressent value

FV= future value= 647,514

r= rate= 6%

n= number of periods of time= 30

PV=647,514/(1+0.06)^30

PV=647,514/(1.06)^30

PV=647,514/5.74

PV=112,807

According to this, you originally borrowed $112,807 for this house.

5 0
3 years ago
Other questions:
  • Greentech is launching a line of miniature solar chargers for laptops, cellphones, and other electronic devices. The chargers ar
    15·1 answer
  • Supply and demand for a product are both a linear function of price. Suppose that if a price of $8 is charged, 8 units will be d
    15·1 answer
  • The balance sheet of Indian River Electronics Corporation as of December 31, 2020, included 12.25% bonds having a face amount of
    14·1 answer
  • Month Income Price Coke Price Pepsi Q^D Coke Q^D Pepsi
    11·1 answer
  • Exercise 9-5 Sandhill Co. purchased a new machine on October 1, 2017, at a cost of $80,010. The company estimated that the machi
    13·1 answer
  • Strategic planning: a. requires managers to set short-term goals to increase market share. b. involves integrating all of the pr
    7·1 answer
  • Consider the following premerger information about Firm X and Firm Y:
    11·1 answer
  • Wallace Company provides the following data for next year: MonthBudgeted Sales January$ 120,000 February 108,000 March 132,000 A
    13·1 answer
  • HELP!!!!!!!!!!!!!!!!!
    8·2 answers
  • The two accounting principles that are critical to the adjusting process used in accrual accounting are:_______
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!