Fiscal policy or changes in tax levels and spending is carried out by the

Walt is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $12,

Sindrei [870]

Answer:

$38,771.44

To achieve at least the 8% rate Walt can pay until this amount.

Explanation:

The goal would be to calcualte the present value for each cashflow using the expected rate of 8%

$\left[\begin{array}{ccc}-&Cash Flow&Discounted\\Year \: 1&12,500&11,574.0740740741\\Year \: 2&10,000&8,573.38820301783\\Year \: 3&7,500&5,953.74180765127\\Year \: 4&5,000&3,675.14926398227\\Year \: 5&2,500&1,701.45799258438\\Year \: 6&0&0\\Year \: 7&12,500&7,293.62994077667\\Total&50,000&38,771.4412820865\\\end{array}\right]$

$\frac{Principal}{(1 + rate)^{time} } = Present \: Value$

For example year 3

$7,500\div \: 1.08^3 = 5953.74180765127$

Then we add each cashflow, to get the present value of the project.

To achieve at least the 8% rate Walt can pay until this amount.

5 0

3 years ago

Which answer best describes an unsubsidized federal loan?

svet-max [94.6K]

An unsubsidized federal loan is one of the loans granted by the federal government to eligible students.

This loan helps the student cover the cost of higher education at a community college, trade, career or technical school, or a 4-year college or university.

Unsubsidized federal loan or direct unsubsidized loan are available for undergraduate and graduate students. The amount you can borrow will be determined by the school. Their basis will be your cost of attendance and other financial aid you are receiving. You are the one paying off the interest incurred in this loan during all periods. In the event of non-payment, said interest will accrue and be capitalized.

5 0

4 years ago

During August, Boxer Company sells $360,000 in merchandise that has a one-year warranty. Experience shows that warranty expenses

marta [7]

Answer:

Debit Estimated Warranty Liability $12,400

Credit Warranty Expense $12,400

Explanation:

Warranty Expense = 0.04 * Total Sales

Warranty Expense = 0.04 * $360,000

Warranty Expense = $14,400

Warranty Liability Account = Warranty Expense + Opening balance of the Warranty liability Account

Warranty Liability Account = $14,400 + $12,400

Warranty Liability Account = $26,800

The business would incur actual warranty expense of $12,400.

Debit Estimated Warranty Liability $12,400

Credit Warranty Expense $12,400

4 0

3 years ago

You have been hired by the No Hassle Collection Agency to provide economic advice. The owner of the agency tells you that No Has

bearhunter [10]

Answer:

The marginal revenue product has a property known as diminishing marginal return.

The property of diminishing marginal return tells us that theres an amount of input that maximizes revenue, and after this point is reached, additional units of input less addional revenue until diminishing it.

In this example, the Collection Agency is way past the maximum revenue point (located at $34.00 per worker). It needs to lay off employees until it goes from the current $40.00 marginal revenue product, until $34.00 marginal revenue product.

6 0

3 years ago

Sally is planning to sell her company and she prefers to obtain immediate liquidity, and the value of consideration to be fixed.

ella [17]

Answer: A cash sale

Explanation: In simple words, liquidity refers to the ability of an organisation to bear its short term expenses. For that a company must have cash or some assets that can be readily converted into cash in case of need.

Hence Sally should sell her company in cash sale as it will result in inflow of cash which will create liquidity and also the consideration will be certain with short timely payments.

Other option such as IPO or stock for stock might result in increase in value but certainly won't give her liquidity.

6 0

3 years ago