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alexdok [17]
3 years ago
14

Tony Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 4 years to overhaul the e

ngine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 4 years, by conducting some research online, Tony has developed the following estimates.
Engine Overhaul Estimated Cash Outflow Probability Assessment
$330 10%
460 30%
750 50%
950 10%

Required:
How much should Keith Bowie deposit today in an account earning 6%, compounded annually, so that he will have enough money on hand in 6 years to pay for the overhaul?
Business
1 answer:
ValentinkaMS [17]3 years ago
3 0

Answer:

$507.73

Explanation:

first we need to calculate the expected cost of overhauling the engine in 4 years:

$330 x 10% = $33

$460 x 30% = $138

$750 x 50% = $375

$950 x 10% = $95

Expected cost = $641

now we must find the present value = $641 / (1 + 6%)⁴ = $507.73

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Landing Service is a lawn furniture company that has been around for many years. It is known for its ability to produce furnitur
morpeh [17]

Answer:

Landing Service

1. Refer to Landing Service. Because the company is known for its ability to produce lawn furniture more efficiently than any other company in the world, the company must have a(n) ____ advantage.  

e. absolute

2. Refer to Landing Service. What type of tax has the Brazilian government imposed on the company?

a. Import duty

Explanation:

Landing Service enjoys absolute advantage with its ability to produce furniture more efficiently than any other company in the world.  It implies that Landing Service can produce furniture with lesser input resources than other furniture companies in the world.

Import duty, in this scenario, refers to the tax imposed by the Brazilian government on Landing Service's furniture. This tax increases the price of the furniture for the Brazilian importers and consumers.

3 0
3 years ago
Who can answer this?
lesantik [10]

Answer:

I don't know the first one but will do the rest I know.

Explanation:

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5. blood cell. their main job or major job is to carry oxygen from the lungs to the body tissues and carbon dioxide as a waste product. and they are important because they transport oxygen to the body's tissue on exchange for carbon dioxide.

I don't know the last one maybe someone else can answer.

7 0
3 years ago
Read 2 more answers
2.22 pts
RSB [31]

Answer:

A trade off or it may be D opportunity at the maegin

7 0
3 years ago
Gere Furniture forecasts a free cash flow of $40 million in Year 3, i.e., at t = 3, and it expects FCF to grow at a constant rat
LenKa [72]

Answer:

Option (A) is correct

Explanation:

Given that,

Free cash flow in Year 3, FCF3 = $40 million

FCF to grow at a constant rate, g = 5%

Weighted average cost of capital, WACC = 10%

Cost of equity = 15%

Therefore,

Horizon Value at year, t = 3:

=\frac{FCF4}{(WACC-g)}

=\frac{FCF3(1+g)}{(WACC-g)}

=\frac{40(1+0.05)}{(0.10-0.05)}

=\frac{42}{0.05}

     = $ 840

4 0
3 years ago
If during the past decade the average rate of monetary growth has been 5% and the average inflation rate has been 5%, everything
skad [1K]
A is the answer


Sorry if I’m wrong
7 0
3 years ago
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