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kotykmax [81]
3 years ago
9

Calculate the present value of the after tax net returns to land in the 7th year if thereal pre-tax net returns to land today ar

e $100, real net returns to land are assumedto increase by 4% each year, inflation is 3%, the marginal tax rate is 30%, and thepretax risk adjusted discount rate is 10%.Group of answer choices
Business
1 answer:
Tatiana [17]3 years ago
8 0

Answer:

PV(after-tax net return in 7th year) = 70.55 (Approx)

Explanation:

Given:

Number of year = 7

Pre-tax net returns (Fn) = $100

Growth rate = 4% = 0.04

Inflation = 3% = 0.03

Marginal tax rate = 30% = 0.3

Discount rate = 10% = 0.1

Computation:

Fn = Fo(1+g)ⁿ = 100(1.04)⁷

Fn = 131.6

Nominal net returns = 131.6(1.03)⁷

Nominal net returns = 161.85

After tax return = 161.85  (1 - 0.3)

After tax return = 113.30

After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%

PV(after-tax net return in 7th year) = 113.30 (1+0.07)⁻⁷

PV(after-tax net return in 7th year) = 70.55 (Approx)

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The seller of product a has no idle capacity and can sell all it can produce at $60 per unit. outlay (variable) cost is $12. wha
Marrrta [24]

The answer is $48.

The seller of product a has no idle capacity and can sell all it can produce at $60 per unit. outlay (variable) cost is $12. $48 is the opportunity cost, assuming the seller sells internally

It is calculated as follows:

Opportunity cost= Production cost- Outlay cost

                             = 60-12

                               =$48

Opportunity costs represent the potential benefits which any individual or investor, or  any business misses out on when choosing one alternative over another.

Because the opportunity costs are generally unseen by definition, they can be easily overlooked. Understanding of the potential missed opportunities when any business or any individual chooses one investment over another investment allows for better decision making.

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5 0
2 years ago
Randy’s Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are
marusya05 [52]

Answer:

Please see answers below

Explanation:

A. For break even point

= fixed expenses - Contribution margin per unit

Where,

Contribution margin per unit = Sales per unit - Variable cost per unit

= $11 - $4

= $7

Therefore,

Break even points in unit = $58,800 ÷ $7

= 8,400 pizzas

B. Target profit

The break even point = Fixed costs expenses + Target profit / Contribution margin per unit

= ($58,800 + $54,000) / $7

= $112,800 / $7

= 16,114 pizzas

C. Margin of safety in dollars

= (Total sales - Break even in sales) * Selling price per unit

= ( 9,900 - 8,400 ) * $11

= 1,500 * $11

= $16,500

D. Contribution margin in lay man's term.

Contribution margin is when a firm makes or produces a product and then sold it, the difference that is left after deducting variable costs(costs associated with the sales like cost of raw materials used in producing the product) from the the sales of such product is the contribution margin.

4 0
4 years ago
TIME REMAINING
MAXImum [283]

Answer:

The Constitution

Explanation:

In the United States, Article I, Section 8 of the Constitution gives Congress the power to "lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. This is also referred to as the "Taxing and Spending Clause."

3 0
3 years ago
Students should consider ________________________ when choosing a career, and this includes reflecting on personal interests, ta
Oliga [24]

According to research studies, Students should consider <u>self-efficacy</u> when choosing a career, including reflecting on personal interests, talents, needs, and values.

<h3>What is Self-Efficacy?</h3>

Self-Efficacy is a psychological term used to describe individuals' ability to perform essential activities to achieve success in their given tasks or endeavor.

Before choosing a career, a student should also consider his capability to perform well in that choosing career. Otherwise, he might not enjoy the career or fail.

Hence, in this case, it is concluded that the correct answer is option A. Self-Efficacy

Learn more about choosing a career here: brainly.com/question/18432815

6 0
2 years ago
The process of packaging and marketing crime information for popular consumption and commercial profit is called?
galina1969 [7]

Answer:

Commodification is the process of packaging and marketing crime information for popular consumption and commercial profit.

Explanation:

Commodification is the conversion of anything like goods, services, ideas, nature, private information, people, or animals into tradeable goods or commodities in a capitalist economic system. According to Arjun Appadurai, the most fundamental definition of a commodity is "something designed for exchange" or "anything of economic value."

To know more about 'Commodification' , visit: brainly.com/question/13235742

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6 0
1 year ago
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