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laila [671]
2 years ago
11

What is the term for how much the insurance company will pay?

Business
2 answers:
ELEN [110]2 years ago
8 0
C coverage because 12 right
Annette [7]2 years ago
4 0
C coverage because it’s money to pay for the accident etc.
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2 years ago
As winner of a breakfast cereal competition, you can choose one of the following prizes: a. $180,000 at the end of five years. b
Stolb23 [73]

Answer:

i. Discounted cashflow equations.

a.  $180,000 at the end of five years.

This is a lump sum present value/ discounted cashflow which can be calculated as;

Formula = 180,000 / ( 1 + r)^n

= 180,000/ ( 1 + 12%)^5

= $102,136.83

b. $11,400 a year forever

This is a perpetuity. The present value/ discounted cashflow of a perpetuity is calculated as;

Formula = Amount/rate

= 11,400/12%

= $95,000

c. $19,000 for each of 10 years.

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Formula = Annuity * [\frac{( 1 - (1 + i)^{-n} )}{i} ] where <em>i </em>is interest rate and <em>n</em> is number of periods

= 19,000 * [\frac{( 1 - (1 + 0.12)^{-10} )}{0.12} ]

= $107,354.24

d. $6,500 next year and increasing thereafter by 5% a year forever.

This is a growing perpetuity. The present value/ discounted cashflow formula is;

= Amount / ( discount rate - growth rate)

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3 years ago
A firm has $76,000,000 in debt, which accounts for 43% of their total funds raised; the after-tax cost of these funds is 6.10%.
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11.55% is the weighted average cost of capital for these funds

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Therefore, WACC =  0.4318 * 6.1 + 0.5682 * 15.7

                               = 11.55%

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Juan recently completed 20 years of service in the army. during this time, he managed to save a little money and is entitled to
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The suggestion suitable for Juan’s situation is for Juan to check out the enterprises zones in the Colorado. Having to check this out will help him to know where to locate his small business and to have a solution in terms of limiting his tax liability in his business.

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