Answer:
$1140.28
Explanation:
The computation of the net present value of this investment is shown below:-
= Annual Cash flows × Present Value of Annuity Factor (r , n) - Initial Investment
as
Annual cash flows = $8600
Present Value of Annuity Factor (r , n)
r = 10% and n = 4 years
So, the Present Value of Annuity Factor will be the sum of the present value of 4 years at 10%
For Year 1 = 0.9091
For Year 2 = 0.8264
For Year 3 = 0.7513
For Year 4 = 0.6830
Total = 3.1698
Therefore,
Net Present Value = (Cash inflow × Total) -
Initial Investment
= ($8600 × 3.1698) - $26,120
= $27,260.28 - $26,120
= $1140.28
Answer:2. Which of the following is the basis for Justice Ginsberg's opinion that Guido and Rankin have legitimate grounds for a lawsuit? The district is a public employer, making its size irrelevant. ... The district has already been sued for the same issue by other former employees.
Explanation:
Answer:
How does the price range affect the elasticity of demand for a product?
Demand for all goods is elastic if the price is low enough.
Price range has little or no effect on elasticity of demand for a good.
Demand for a good can be inelastic at a low price, but elastic at a high price.
Demand for a good can be elastic at a low price but inelastic at a high price.
Explanation:
How does the price range affect the elasticity of demand for a product?
Demand for all goods is elastic if the price is low enough.
Price range has little or no effect on elasticity of demand for a good.
Demand for a good can be inelastic at a low price, but elastic at a high price.
Demand for a good can be elastic at a low price but inelastic at a high price.
Answer:
4,513 approx.
Explanation:
The computation of the minimum number of jars of silver polish is shown below:-
Sales revenue for one jar of silver polish $5.60
Sales revenue for 1/4 pound of Grit 337 0.85
($3.40 × 1 ÷ 4)
Incremental revenue from
further processing $4.75
($5.60 - 0.85)
Incremental costs of further processing:
Processing costs $2.40
Selling costs $0.40 $2.80
Incremental contribution
margin from further
processing into silver polish
per jar $1.95
($4.75 - $2.80)
Point of indifference denotes the point where all options are equally profitable. But after that we will see that more processing is profitable. This is due to the fixed costs involved in further production.
Thus Minimum number of jars needed to produce to justify the further processing = Avoidable Fixed cost ÷ Incremental contribution
= $8,800 ÷ $1.95
= 4,513 approx.
Answer:
5.32%
Explanation:
The computation of the coupon rate on the bonds is shown below:
As we know that
Current price = Annual coupon × Present value of annuity factor(6.1%,8 ) + $1,000 × Present value of discounting factor(6.1%,8)
$952 = Annual coupon × 6.18529143 + $1,000 × 0.622697222
Annual coupon is
= ($952 - 622.697222) ÷ 6.18529143
= $53.24
Now
Coupon rate is
= Annual coupon ÷ Face value
= $53.24 ÷ $1,000
= 5.32%
Working notes:
1. Present value of annuity is
= Annuity × [1 - (1 + interest rate)^-time period] ÷ rate
= Annual coupon × [1 - (1.061)^-8] ÷ 0.061
= Annual coupon × 6.18529143
And,
2.Present value of discounting factor is
= $1,000 ÷ 1.061^8
= $1000 × 0.622697222