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kirza4 [7]
2 years ago
15

Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately

, (2) $20,000 cash immediately and a six-period annuity of $8,000 beginning one year from today, or (3) a six-period annuity of $13,000 beginning one year from today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Assuming an interest rate of 6%, determine the present value for the above options. Which option should Alex choose
Business
1 answer:
Vsevolod [243]2 years ago
4 0

Answer:

(1) $64,000

$59,338.60

3. $63,925.22

He would choose the first option because it has the highest present value

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Option 2

Cash flow in year 0 = $64,000

Cash flow each year from year 1 to 6 = $20,000

I = 6%

pv = $59,338.60

Option 3

Cash flow each year from year 1 to 6 = $13,000

I = 6%

pv = $63,925.22

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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Pinnocle Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total
Lostsunrise [7]

Answer:

Product margin= $9,607.5

Explanation:

<u>First, we need to calculate the allocation rates:</u>

Assembly= 1,533,840 / 77,000= $19.92 per machine-hour

Processing orders= 91,065 / 1,950= $46.7 per order

Inspection= 139,788 / 1,980= $70.6 per inspection-hour

<u>Now, we need to allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Assembly= 19.92*660= 13,147.2

Processing orders= 46.7*50= 2,335

Inspection= 70.6*10= 706

Total= $16,188.2

<u>Finally, the product margin for product S78N:</u>

Product margin= 430* (124.3 - 51.25 - 13.06) - 16,188.2

Product margin= $9,607.5

4 0
2 years ago
Which of the following is the type of logical database model that treats data as if they were stored in two-dimensional tables?
Luden [163]

Answer: (C) Relational DBMS

Explanation:

 The relational database management system (DBMS) is specifically designed for the purpose of relational databases by using the concept database management system.

 The relational database is basically refers to the DBMS which store the data or information in the form of structured format by using various columns and rows.

The relational DBMS makes more easy to access the values which is more specific in the database management system.

Therefore, the relational DBMS is one of the type of logical database system that basically treats the data in the form of dimensional table

4 0
3 years ago
Read 2 more answers
Sally has been working really hard lately and asks her manager for a raise. Her manager tells her that she is already the highes
alukav5142 [94]

Answer:

C. hacking

Explanation:

Hacking is a term used to describe an unauthorized access to a computer data base for illegal purposes. It also means breaking into an organization's security data system either to corrupt data, steal information or disrupt certain activities.

Most hackers demand for monetary returns or cause collateral damage having gained unathourized access into an organization's data base.

There are several ways of hacking which includes;

Phising scam: An attempt to have access into a computer by making a user open an attachment or provide confidential information.

Malware attack: is a type of hacking attack which after being carried out, cripple activities of an entire organization including its business associate, government parastatals, customers etc in exchange for money.

Code break: This is where a secret software is installed to allow users hit a company' s data base through strings.

Organizations are beginning to expend money on their security systems by constantly updating them against any internal and external attack.

3 0
3 years ago
Feeney Furniture prepared the following sales budget: Month March April May June Cash Sales Credit Sales $11,000 0 $11,000 0 37,
Leviafan [203]

Answer:

Option (B) is correct.

Explanation:

Total cash collections in June:

= Cash sales + (62 percent of June credit sales) + (30 percent of May credit sales) + (5 percent of April credit sales)

= $60,000 + ($51,000 × 0.62) + ($37,000 × 0.30) + ($11,000 × 0.05)

= $103,270

Therefore, the total cash collections in June at Feeney Furniture is $103,270.

8 0
3 years ago
Suppose the current exchange rate for the Polish zloty is Z 2.92. The expected exchange rate in three years is Z 3.00. What is t
djyliett [7]

Answer:

The answer is 91% or Supposed to be 0.00905

Explanation:

We can use the relative purchasing power parity equation:

Ft = S0 × [1 + (hFC – hUS)]t

We can find:

Z 3.00 =Z 2.92 [1 + (hFC – hUS)]3    

hFC – hUS = (Z 3.00/Z 2.92)1/3 – 1

hFC – hUS = .00905

The Inflation in Poland is expected to exceed that in the U.S. by 91% over this period.

3 0
3 years ago
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