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3 years ago

What is the present value of a constant perpetuity of 25 per year where the required rate of return is 5%

Business

1 answer:

Xelga [282]3 years ago

5 0

Answer:

The present value of a constant perpetuity of 25 per year where the required rate of return is 5% is:

$500

Explanation:

a) Data and Calculations:

A constant perpetuity = $1

Present value factor of a constant perpetuity for 25 per year at 5% is $1/0.002

Number of periods for the perpetuity per year = 25

Required rate of return = 5%

Rate of return per period = 5%/25 = 0.002

Therefore, the value of a constant perpetuity = $1/0.002

= $500

The $500 can be used to multiply any amount given obtain the total value of the perpetuity.

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olchik [2.2K]

The appropriate response is staff organization. It is a kind of participation gathering in which an expert staff directs the vast majority of the gathering's exercises. In this sort of association, the practical authorities are added to the line, accordingly giving the line the upsides of masters. The staff is fundamentally counseling in nature and normally does not have any summon expert over line administrators.

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3 years ago

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance

kondor19780726 [428]

Explanation:

The computation is shown below:

1. Average operating assets is

= (Opening operating assets + closing operating assets) ÷ 2

where,

Opening operating assets is

= Total assets - Land (undeveloped) - Investment in Buisson, S.A

=$2,020,000 - $180,000 - $250,000

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And, the closing operating assets is

= Total assets - Land (undeveloped) - Investment in Buisson, S.A

= $2,100,000 - $170,000 - $280,000

= $1,650,000

So, average operating assets is

= ($1,590,000 + $1,650,000) ÷ 2

= $1,620,000

Margin = Net operating income ÷ Sales

= $405,000 ÷ $4,050,000

= 0.1 or 10%

Turnover is

= Sales ÷ Average operating assets

= $4,050,000 ÷ $1,620,000

= 2.5

Return on Investment = Margin ×Turnover

= 0.1 × 2.5

= 0.25 or 25%

3. Residual Income = Net operating Income - (Average operating assets × Minimum required rate of return)

= $405,000 - ($1,620,000 × 15%)

= $405,000 - $243000

= $162,000

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3 years ago

Amazon creates many utilities for its customers, but perhaps the most valuable utility for consumers is ________, the utility cr

OlgaM077 [116]

Answer:

The correct answer is Place Utility

Explanation:

Place Utility is the utility that a good has because of the place where it is located. A product that has high place utility is a product that is near customers, or that can change locations in order to be even nearer to the customers.

This is a fancy way to say that delivered products are useful because they are available at your doorstep, which is the most convenient place possible. This is the principle from which Amazon has built. Amazon depends on the place utility of the products it offers.

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3 years ago

The Daily Grind sells coffee makers. Its inventory of coffee makers without timers cost $20,000 and is now valued at $10,000. It

tiny-mole [99]

Answer:

$45,000

Explanation:

LCM (lower of cost or market) is an inventory valuation method that uses the lower figure between the cost of purchase of an inventory, and the price at which it can be currently replaced in the market, as the carrying amount of the inventory.

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3 years ago

Jaleel's work group meets face-to-face and generates numerous alternatives to a product issue, many of them radical and a few ou

Paladinen [302]

Answer:

brainstorming as a part of it’s decision making process

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3 years ago