Wich situation would cause the price of a product to fall the most

Why might you complete a 1040 instead of a 1040ez?

Liula [17]

D none of the above

8 0

2 years ago

A famous quarterback just signed a contract for $16 mil, providing $3.6 million a year for 4 years. A less famous receiver signe

Damm [24]

Answer:

The PV of the famous quarterback is $11,662,991.56, while the PV of less famous receiver is $12,719,159.63.

Explanation:

Present value (PV) refers to the valuation date value of a stream of income expected to be received in the future.

The PV for each of the two contracts can calculated by using the interest rate of 9%% (i.e. 0.12) as the discounting factor (r) to calculate the PV for each year. The discounting formula to use is (1+r)^n where n represents each relevant year. The calculations are done as follows:

1. For a famous quarterback

Step 1. Calculation of the PV for year

Year 1 PV = $3,600,000 ÷ (1.09)^1 = $3,302,752.29

Year 2 PV = $3,600,000 ÷ (1.09)^2 = $3,030,047.98

Year 3 PV = $3,600,000 ÷ (1.09)^3 = $2,779,860.53

Year 4 PV = $3,600,000 ÷ (1.09)^4 = $2,550,330.76

Step 2. Calculation of the total PV

This is obtained by adding the PVs of year 1 - 4 calculated above, and this is equal to $11,662,991.56.

2. For a less famous receiver

Step 1. Calculation of the PV for year

Year 1 PV = $3,000,000 ÷ (1.09)^1 = $2,752,293.58

Year 2 PV = $3,000,000 ÷ (1.09)^2 = $2,525,039.98

Year 3 PV = $3,000,000 ÷ (1.09)^3 = $2,316,550.44

Year 4 PV = $3,000,000 ÷ (1.09)^4 = $2,125,275.63

Step 2. Calculation of the total PV

This is obtained by adding the PVs of year 1 - 4 calculated above, and this is equal to $9,719,159.63.

In addition, the $3,000,000 is to receive now is added to the $9,719,159.63 as follows:

PV of less famous receiver = $9,719,159.63 + $3,000,000

= $12,719,159.63

Conclusion

Therefore, the PV of the famous quarterback is $11,662,991.56, while the PV of less famous receiver is $12,719,159.63.

5 0

3 years ago

Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 6 comma 800 items in its invento

Nitella [24]

Answer:

99 items

Explanation:

Total number of items = 6,800

The number of items per type is:

$A= 6,800*0.08\\A=544\ items\\B= 6,800*0.34\\B=2,312\ items\\C= 6,800*0.58\\C=3,944\ items$

The number of items of each type counted per day is:

$n_A=\frac{544}{20}\\n_A=27.2\\n_B=\frac{2312}{59}\\n_B=39.2\\n_C=\frac{3944}{121} \\n_C= 32.6\\$

The total number of items counted per day is:

$n = n_A+n_B+n_C=27.2+39.2+32.6\\n=99\ items\ per\ day$

6 0

2 years ago

Godart Co. issued $4.5mn notes payable as a scrip dividend that matured in five years. At maturity, each shareholder of Godart's

Ghella [55]

Answer:

$6,750,000

Explanation:

Since it is stated in the question that the 3mn shares will be paid the principal and interest at maturity, and it is not stated the note is compounded, we apply the following simple calculation:

Amount to pay = $4,500,000 + [($4,500,000 × 10%) × 5 years]

= $4,500,000 + [$450,000 × 5 years]

= $4,500,000 + 2,250,000

Amount to pay = $6,750,000

Therefore, the amount should be paid to the stockholders at the end of the fifth year is $6,750,000.

4 0

3 years ago

Which of the following is a reason advertising can be economically wasteful? Advertising provides consumers with price and quali

babymother [125]

Answer:

The most effective advertising is very expensive and, therefore, wasteful.

Explanation:

In order for something to be considered economically wasteful it must use and dispose money carelessly.

Therefore options:

Advertising provides consumers with price and quality information about products.
Advertising manipulates people's tastes and can reduce competition.

Do not apply since the options do not consider the costs of advertisement.

The only option that considers the cost of advertisement is: The most effective advertising is very expensive and, therefore, wasteful. It refers to the high costs of effective advertisement, and it implies that the money is not used carefully.

5 0

2 years ago