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Harman [31]
3 years ago
5

A small business has determined that the machinery they currently use will wear out in 16 years. To replace the new machine when

it wears out, the company wants to establish a savings account today. If the interest rate on the account is 1.6 percent compounded quarterly and the cost of the machinery will be $280,000, how much will the company have to deposit today?
Business
1 answer:
Afina-wow [57]3 years ago
8 0

Answer:

Present value deposit today = 216,886 (Approx)

Explanation:

Given:

Number of year (n) = 16 years x 4 quarter = 64

Rate of interest (r) = 1.6% = 0.016 / 4 = 0.004

Future value = $280,000

Present value = ?

Computation of present value deposit today:

Present\ value = \frac{Future\ value}{(1+r)^n}\\\\Present\ value = \frac{280,000}{(1+0.004)^{64}}\\\\Present\ value = \frac{280,000}{1.291}\\\\Present\ value = 216,886.135

Present value deposit today = 216,886 (Approx)

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Economics: A group of competitors who work in unison to control the supply and price of their product is called a
7nadin3 [17]

Answer:

cartel

Explanation:

A "cartel" is a<em> group of competitors or market participants</em> who are independent from each other. They <u>work in unison by cooperating secretly</u> in an <em>unlawful way</em> so they can control the supply and price of their products. In this way, they can dominate the market.

Such type of alliance with rivals have existed since the ancient times. It <em>increased following </em><em>World War I,</em> but<em> started declining after </em><em>World War II</em>.

So, this explains the answer.

6 0
3 years ago
Milo Clothing experienced the following events during 2016, its first year of operation: 1. Acquired $12,000 cash from the issue
Serga [27]

Answer:

Explanation:

The four transactions  will be recorded in the general journal as follows:

1) Debit cash                 $12,000

             Credit common stock                       $12,000

(To record the sale of common stock)

2) Debit purchases                 $5,600

            Credit   cash                 $5,600

(To record purchase of inventory in cash)

3) Debit cash                 $5,712

           Credit sales                        $3,360

            Credit gross profit              $2,352

(To record the sale of inventory in cash)

4) Debit advertising expenses                   $650

          Credit cash                     $650

(To record the payment of advertising expenses in cash)

5 0
3 years ago
Which of the following statements about comparative advertising is true? Comparative advertisements now constitute over 90% of a
alexira [117]

Answer:

Comparative advertisements need legal support for their claims and must not misrepresent competing products/brands

Explanation:

Comparative advertisement is also called advertising war. A competitor is named in the advertisement and reasons are given why the competitor's product is inferior to the one being advertised.

In this type of advertisement to prevent adverse legal action the company needs to carry out extensive research to provide legal backing for their claims.

Firms must also not misrepresent the competitor's product as this can lead to legal action.

3 0
3 years ago
Art, Inc., has 2,500 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock out
stepladder [879]

Answer:

The amount of dividend received by common stockholders in 2017 = $7500

Explanation:

The preference shares are cumulative which means the 2015 dividend on cumulative preference shares will be paid in the next year when dividend is declatred.

The total dividend on preference shjares is = 2500 * 100 * 0.05 = $12500

In 2016 dividend of 22500 is declared and paid.

Out of this 22500, 12500 relates to prefernece dividend for 2015.

The remaining 10000 relates to 2016 preference dividend. Thus, 2500 of 2016 preference dividned is outstanding and will be paid in 2017.

In 2017 out of 22500, 15000 (12500 + 2500) dividendd is paid to preference share holders.

The amount of dividend received by common stockholders in 2017 = 22500 - 15000 = $7500

7 0
3 years ago
Which social network has more than 410 million registered members and because of that popularity, more than 4 million companies
Afina-wow [57]

Answer:

The social media platform with more than 410 million people registered is Linkedin

hope I helped!! :D

Explanation:

7 0
3 years ago
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