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3 years ago

What is the value today of receiving $5,000 at the end of six years, assuming an interest rate of 8% compounded semiannually?

Business

1 answer:

Ulleksa [173]3 years ago

6 0

Answer:

$3,122.96

Explanation:

Future value = 5000

i = 8%

n = 6

m = 2

Present Value = FV(1+i/m)^mn

Present Value = 5,000(1+0.08/2)^-2*6

Present Value = 5,000(1.04)^-12

Present Value = 5,000 / (1.04)^12

Present Value = 5,000 / 1.6010322

Present Value = 3122.985284118583

Present Value = $3,122.96

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Carla Vista Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $500,0

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Answer and Explanation:

The Preparation of analysis showing whether the company should eliminate the gloves and mittens line is shown below:-

Particulars Continue Eliminate Net Income

Increase (Decrease)

Sales $500,000 0 ($500,000)

Variable

expenses $360,000 0 $360,000

Contribution

margin $140,000 0 ($140,000)

Fixed costs $148,000 $36,000 $112,000

Net income ($8,000) ($36,000) ($28,000)

The analysis showing that the Carla Vista Corporation should manufacture gloves and mittens else there loss will be increased by $28,000

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3 years ago

Economics students often confuse (a) diminishing returns related to the variable factors of production and (b) diseconomies of s

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Answer:

Marginal Product:

The marginal product of an input that is being used in the production process of a good or services is the extra output generated by using the extra unit of that input. Alternatively, the marginal product is the output generated by the last unit of the input added only.

Explanation:

Diminishing marginal returns means that as you adds more units of that input, the marginal product declines. That is, each additional of extra unit of the input results in decreased and less additional output. For example, the marginal product of labor usually decreases as the amount of labor increases because there is a fixed amount of capital used in the short run, so when labor increases, the capital per unit of labor decreases, which results in each and every extra working being less productive than the previous one.
Dis-economies of scale, whereas, results in an increase in the average cost of production as the number of units increases. That's why diminishing marginal returns refers to production, and dis-economies of scale refers to the average cost. Dis-economies of scale often happened because the production levels get high, there is less management on each employee, resulting in each employee having less motivation to work as hard due to lack of production making it hard to notice that change.So, it may results in the average worker's productivity decreasing, causing the per-unit cost to rise.

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If a target was purchased for $1,500.0m with an equity contribution of $500.0m, what is the enterprise value of the target if it

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Answer: a. $1,000.0m

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Even though the company's enterprise value has no growth, the equity investment of the sponsor will rise from $500.0m when purchased to $1,000.0m when the target for the value of the enterprise is sold for $1500.0m.

The debt was $1000m at year 0 while the remaining $500m was for equity. It should be noted that at the fifth year, equity will be $1,000.0m while the debt will be $500m.

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What does surplus mean in Economics?

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