you are thinking of building a new machine that will save you $50,000 in the first year.the machine will then begin to wear out so that the savings decline at a rate of 2.5percent per year forever. what is the present value of the savings if the discount rate is8 percent per year?
Answers
Present value of the savings generated by the machine, considering the declining savings and a discount rate of 8% per year, is $625,000.
To calculate the present value of the savings generated by the machine, we can use the concept of a perpetuity formula. A perpetuity is a series of cash flows that continues indefinitely into the future.
In this case, the savings decline at a rate of 2.5% per year forever. So the cash flows can be represented as follows: Year 1: $50,000 Year 2: $50,000 * (1 - 2.5%) = $50,000 * 0.975 = $48,750 Year 3: $50,000 * (1 - 2.5%)2 = $50,000 * 0.9752 = $47,438 Year 4: $50,000 * (1 - 2.5%)3 = $50,000 * 0.975^3 = $46,149
We can see that the savings decline each year by multiplying the previous year's savings by (1 - 2.5%). To calculate the present value, we need to sum up the discounted cash flows. The discount rate is given as 8% per year. The present value formula for a perpetuity is:
Present Value = Cash Flow / Discount Rate Using this formula, we can calculate the present value of the savings: Present Value = $50,000 / 0.08 = $625,000
Therefore, the present value of the savings generated by the machine, considering the declining savings and a discount rate of 8% per year, is $625,000.
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Related Questions
Talitha wants to build a game for mobile phones that she believes teens will pay to play. What would be the best thing she could do to test her assumptions about her potential customers?
Answers
Answer:
Do a Survey and target the population she thinks is going to play the app
Explanation:
In order to test her assumptions about her potential customers she should conduct a survey which helps her in effective data collection.
What is a Customer?A customer is referred to as an individual who purchases a product or service. He may or may not be the consumer. A consumer refers to a person who utilizes or consume goods and service.
A survey is referred to as a method of observation and data collection in which some set of questions will e asked from the designed or selected set of samples and based on their responses a conclusion will be formed.
Surveys can be used to determine how representative each person's opinions and experiences are. Finding out what your consumers like and dislike can help you improve your business. This will helps to find potential customers based on their responses.
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Which of the following describes accrued revenue? (Check all that apply) Multiple select question. The adjustment causes an increase in an asset account and an increase in a revenue account. Accounts receivable is usually increased when accruing revenues. Adjustments involve increasing both an expense account and a liability account. They refer to revenues that are earned in a period, but have not been received and are unrecorded. They refer to earnings which have been earned but not yet billed.
Answers
Answer:
The adjustment causes an increase in an asset account and an increase in a revenue account. Accounts receivable is usually increased when accruing revenues. They refer to revenues that are earned in a period, but have not been received and are unrecorded. They refer to earnings which have been earned but not yet billed.Explanation:
Accrued revenue refers to cash earned for selling a good or delivering a service yet the cash has not been received and the transaction was not recorded in the books as revenue. This means that the cash has been earned but it has not been billed to the customer it was earned from.
When the books are being adjusted for this, the accounts receivable - which is an asset account - will increase to show that cash is owed. Revenue will also increase as this was cash earned from delivering a good or service.
please please can someone help i need a full answer by 11pm =)
In addition to the 3 types of financial aid, students can also get academic loans. Today, we’ll focus on:
1. Grants
2. Scholarships
3. Work study
There are 3 questions to ask about financial aid:
1. How do you get the money?
2. Why are you getting the money?
3. Do you have to pay the money back?
Research online to answer these questions for each type of financial aid above. What kind of financial aid is the most appealing to you? Why?
Answers
Answer:
Grants:
How do you get the money? Grants are awarded to students based on financial need, academic achievement, or other specific criteria set by the grant provider. To apply for a grant, students typically need to complete the Free Application for Federal Student Aid (FAFSA) or other application required by the grant provider.
Why are you getting the money? Grants are designed to provide financial assistance to students who demonstrate a need for financial aid or meet specific eligibility requirements. The money can be used to cover tuition, fees, and other educational expenses.
Do you have to pay the money back? No, grants are typically considered gift aid and do not need to be repaid.
Scholarships:
How do you get the money? Scholarships are awarded based on academic achievement, talent, leadership, or other specific criteria set by the scholarship provider. To apply for a scholarship, students may need to complete an application, provide essays or letters of recommendation, and meet specific eligibility requirements.
Why are you getting the money? Scholarships are designed to provide financial assistance to students who demonstrate academic excellence, talent, or meet specific eligibility requirements. The money can be used to cover tuition, fees, and other educational expenses.
Do you have to pay the money back? No, scholarships are typically considered gift aid and do not need to be repaid.
Work study:
How do you get the money? Work-study programs provide students with part-time jobs on or off-campus. Students must apply for work-study by completing the FAFSA or other application required by the school.
Why are you getting the money? Work-study programs provide students with the opportunity to earn money to help pay for their educational expenses while gaining valuable work experience.
Do you have to pay the money back? No, work-study programs provide students with an opportunity to earn money and do not need to be repaid.
Among the three types of financial aid, scholarships are the most appealing to me because they are awarded based on academic achievement or talent, which rewards hard work and dedication. Also, scholarships do not need to be repaid, so I do not have to worry about accumulating debt. Additionally, scholarships can cover a significant portion of my educational expenses, allowing me to focus on my studies and achieve my academic goals without the burden of financial stress.
Explanation:
Explain five steps in product design for a business
Answers
Explanation:
Five phases guide the new product development process for small businesses: idea generation, screening, concept development, product development and, finally, commercialization.
an employee can be dismissed if their job surplus to requirements' outline why this state ment is false
Answers
. Which of the following is a true statement regarding a performance indicator? a. All healthcare organizations are required to report a performance indicator b. Only governmental health care organizations are required to report a performance indicator. c. The purpose of reporting a performance indicator is to make it easier to compare the result of operations of not-for-profit health care organizations to those of for-profit health care organizations d. The purpose of reporting a performance indicator is to assist in evaluating the efficiency and effectiveness of a health care organization’s operating activities.
Answers
Answer:
C. The purpose of reporting a performance indicator is to make it easier to compare the results of operations of not-for-profit health care organizations to those of for-profit health care organizations.
Explanation:
performance indicator which can as well be regarded as key performance indicator is reffered to type of performance measurement, which enables evaluation of the success of an organization as well as particular activities like projects, products and
programs, that the company engage in.
It should be noted that The purpose of reporting a performance indicator is to make it easier to compare the results of operations of not-for-profit health care organizations to those of for-profit health care organizations.
The three primary functions that exist in most business organizations are:
A) manufacturing, production, and operations B) operations, marketing, and finance C) operations, accounting, and marketing
D) operations, production, and finance E) none of the choices are correct
Answers
(Option B) Operations, marketing, and finance are the three primary functions that exist in most business organizations.
Operations refers to the production, delivery, and management of the organization's products or services. Marketing refers to the research, promotion, and sale of the organization's products or services.
Finance refers to the management of the organization's financial resources, including budgeting, accounting, and investment decisions. Manufacturing and production are specific aspects of operations, while accounting is a specific aspect of finance, but all three functions are essential components of a business organization's overall success.
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what kind of employees can fill the three levels of management
Answers
Answer:
hierarchy: Any group of objects ranked so that every one but the topmost is subordinate to a specified one above it.
manager: A person whose job is to manage something, such as a business, a restaurant, or a sports team.
board of directors: A group of people, elected by stockholders, to establish corporate policies, and make management decisions.
top management: company employees responsible for controlling and overseeing the entire organization
middle management: company employees that are accountable for controlling and overseeing a department
Explanation:
Most organizations have three management levels:
Low-level managers;
Middle-level managers; and
Top-level managers.
These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid.
Top-level managers
The board of directors, president, vice-president, and CEO are all examples of top-level managers.
These managers are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company policies, and make decisions on the direction of the business.
In addition, top-level managers play a significant role in the mobilization of outside resources.
Top-level managers are accountable to the shareholders and general public.
Middle-level managers
General managers, branch managers, and department managers are all examples of middle-level managers. They are accountable to the top management for their department’s function.
Middle-level managers devote more time to organizational and directional functions than top-level managers. Their roles can be emphasized as:
Low-level managers
Supervisors, section leads, and foremen are examples of low-level management titles. These managers focus on controlling and directing.
Low-level managers usually have the responsibility of:
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 7% of par, and a current market price of (a) $63, (b) $80, (c) $96, and (d) $1457 Round your answers to two decimal places. a. _____% b. _____% c. _____% d. _____%
Answers
The nominal rates of return for the given market prices are: (a) 11.11%, (b) 8.75%, (c) 7.29%, and (d) 0.48%.
The nominal rate of return on a perpetual preferred stock is determined by dividing the stated dividend by the current market price and expressing the result as a percentage. The stated dividend is typically a percentage of the par value of the stock.
Par Value (PV) = $100
Stated Dividend = 7% of PV = 0.07 * $100 = $7
To calculate the nominal rate of return, we divide the stated dividend by the current market price and multiply by 100 to convert it into a percentage.
a. Nominal Rate of Return for a Market Price of $63:
Nominal Rate of Return = (Stated Dividend / Market Price) * 100
Nominal Rate of Return = ($7 / $63) * 100 ≈ 11.11%
b. Nominal Rate of Return for a Market Price of $80:
Nominal Rate of Return = (Stated Dividend / Market Price) * 100
Nominal Rate of Return = ($7 / $80) * 100 ≈ 8.75%
c. Nominal Rate of Return for a Market Price of $96:
Nominal Rate of Return = (Stated Dividend / Market Price) * 100
Nominal Rate of Return = ($7 / $96) * 100 ≈ 7.29%
d. Nominal Rate of Return for a Market Price of $1457:
Nominal Rate of Return = (Stated Dividend / Market Price) * 100
Nominal Rate of Return = ($7 / $1457) * 100 ≈ 0.48%
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tyler a new accounts representative at martin marketing is learning the job by actually doing job related tasks uch as contacting customers tyler is most likely apriciapting in
Answers
The fact that Tyler is learning the job by actually doing job related tasks depicts on the job training
What is on the job training?It should be noted that on the job training simply means a form of training whereby new employees learn the job based in task given.
In this case, Tyler is learning the job by actually doing job related tasks. This is on the job training.
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Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 5 bushels of corn or 50 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. If the two countries do not trade, Cornland will produce and consume 400 bushels of corn and 100 bushels of oats, while Oatland will produce and consume 60 bushels of corn and 400 bushels of oats. If each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by
Answers
Answer:
see. I hope it's helpful for you lolExplanation:
i need friend lol can you my friend
Celebrity endorsements are examples of ethical appeals.
True
False
Answers
Answer:
Celebrity endorsements are examples of ethical appeals.
True
False
Explanation:
true
match each type of area with the correct level of housing prices?
URBAN
EXURBAN
SUBURBAN
LOW HOUSING PRICES
MEDIUM HOUSING PRICES
HIGH HOUSING PRICES
Answers
Answer and Explanation:
The matching of the area with the level of housing prices is as follows
Urban = High housing prices
As urban refers to that area in which there is a large population so of course the prices of the houses are high
Exurban = Low housing prices
The exurban is located in the rural areas in which there are less populations as compared to sub
Suburban = Medium housing prices
In this the population is more than the exurban
Which three characteristics help identify a business opportunity? (Choose three)
Answers
The characteristics that help to identify a business opportunity includes
when it is measurablethe market availabilitythe timing of the opportunity.What is a business opportunity?It refers to a packaged business investment that does allows a potential buyer to begin a business.
In conclusion, the identification of a business opportunity is important because it informs about the best moment to start a business.
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A company manufactures and sells x cellphones per week. The weekly price-demand and cost equations are given below.
p = 400 0.5x and C(x)=20,000+130x
What price should the company charge for the phones, and how many phones should be produced to maximize the weekly profit? What is the maximum weekly profit?
Answers
To find the price that the company should charge for the phones, we need to find the point where the company's revenue (price x quantity) equals its cost. We can set the revenue equation equal to the cost equation to find this point:
400 0.5x = 20,000 + 130x
Simplifying this equation, we get:-129.5x = -20,000
x = 154.44
So the company should produce approximately 154 phones per week to maximize profit. To find the price the company should charge, we can plug this value into the price-demand equation:
p = 400 0.5(154.44) = $77.2
Revenue = price x quantity = $77.22 x 154.44 = $11,928.39
Cost = 20,000 + 130(154.44) = $41,113.20
Profit = Revenue - Cost = $11,928.39 - $41,113.20 = -$29,184.81
This negative profit indicates that the company is actually operating at a loss if they produce and sell this number of phones at this price. To maximize profit, the company would need to consider adjusting its cost structure, price point, or production volume.
To maximize the weekly profit, we first need to find the revenue function, R(x), and then the profit function, P(x).
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Analyse the implications to Mr Flake’s business if: In May and June Mr Flake fell ill and he had to pay somebody else £1200 a month to run the business as well as himself? Answer: He received 6 more party bookings for September?
Answers
Answer:
1. Paying somebody else and himself represent cash outflow.
2. Party bookings represents forecasted cash inflow.
Explanation:
Remember, a cash flow shows where money is coming from into the accounts of a business and where money goes to from the accounts of the business. Inflows represent credit transactions into the business account, while the outflows represents debit transactions to external sources.
Thus, paying somebody else £1200 a month to run the business as well as himself (Mr Flake) both represents outflow of cash from his ice-cream business. But the 6 more party bookings for September represents cash inflows since he will be receiving a pay from the clients.
Which one is it?
Subject: Economics
Foolproof Module 6
Answers
Answer:
True.
Explanation:
A credit card can be defined as a small rectangular-shaped plastic card issued by a financial institution to its customers, which typically allows them to purchase goods and services on credit based on the agreement that the amount would be paid later with an agreed upon interest rate.
A 0% interest credit card refers to a credit card that has no interest charged on it for a specific period of time, usually between twelve (12) and twenty-one (21) months.
Thus, a credit card holder with a 0% interest won't have to pay interest on any purchase for the duration of the incentive.
However, the 0% interest card holder is still required to make monthly minimum payments and must be made promptly.
Hence, if you make a late payment on a 0% interest card, you're responsible for paying the entire interest from the time you opened the card.
what is the conclusion? some exports are gmos because some exports are foods and all gmos are foods.
Answers
The correct option is A, The conclusion is Some exports are GMOs. Some exports are GMOs because some exports are foods and all GMOs are foods.
Exports are commodities or services that are created in one nation and offered to customers in another. The process of exporting involves the transfer of goods or services from the producing country to the importing country, which takes place through various trade channels such as shipping, air transportation, or online platforms. Exports play a crucial role in the economic growth of a country as it provides an opportunity for companies to increase their revenue and profits by reaching a larger customer base.
Exporters must comply with international trade regulations, tariffs, and other trade barriers imposed by the importing country. Additionally, they must also ensure that their goods or services meet the quality standards and regulations of the importing country.
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Complete Question: -
What is the conclusion? Some exports are GMOs because some exports are foods and all GMOs are foods.
a. Some exports are GMOs.
b. All foods are GMOs.
c. Some exports are foods.
d. All GMOs are foods.
Using complete sentences, explain the difference between a need and a want and give an example of each.
Answers
Answer:
A need is something that you can't survive without. For example, you need food, water, shelter and clothing. A want is something you can live without, but having it makes life more enjoyable. For example, a TV, a cell phone, and a cool toy are all wants.
what happens in the labor market when a labor union has market power? group of answer choices
Answers
When a labor union has market power, it is able to negotiate higher wages and better working conditions for its members than would be possible in a more competitive labor market.
Labor unions are organizations that represent workers in collective bargaining with employers. When a labor union has market power, it means that the union has bargaining leverage due to the scarcity of labor with certain skills or in certain industries. This allows the union to negotiate better wages, benefits, and working conditions for its members than would be possible in a more competitive labor market.
In the short run, the increased wages and benefits negotiated by the union can lead to higher costs for employers, which can in turn lead to higher prices for consumers. However, in the long run, the higher wages can also lead to increased productivity and better job satisfaction for union members, which can benefit both workers and employers.
The increased bargaining power of the union can also lead to a decrease in the supply of labor in the market. This is because non-union workers may choose to join the union to take advantage of the higher wages and benefits, or employers may choose to hire fewer workers overall in order to offset the higher costs of union labor.
Overall, when a labor union has market power, it can lead to higher wages and better working conditions for its members, but it can also have broader impacts on the labor market and the economy as a whole.
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QUESTION 7 of 20: Your savings account pays 2.5% interest per year. How much interest does the account pay per month.
a) .02%
b) 04%
c) 21%
d) 43%
Answers
Answer:
a) .02%
Explanation:
One year has 12 months.
The interest rate per year = 2.5%
Interest earned per month will be
=2.5% / 12
=0.02%
Answer:
c 21%
Explanation:
i got it right
#1 You are driving down the highway when one of your tires suddenly blows out. You should
Pump your brakes rapidly, and steer your vehicle to control any skids.
Avoid using your brakes. Slow down gradually and concentrate on steering.
Press hard on your brake pedal and stop as quickly as you can.
Answers
Select the correct answer.
Why are borrowing and lending money important in the United States?
A.
They ensure that people and businesses can buy what they need.
B.
They ensure that money is distributed equally and fairly to all.
C.
They ensure that the government's financial regulations are followed.
D.
They ensure that the nation can avoid an economic recession.
Answers
Answer:
A.
They ensure that people and businesses can buy what they need.
Explanation:
Borrowing involves requesting and receiving a huge sum of money in a lump sum. Households and firms borrow from lenders to finance business expansion or domestic consumption.
In the economy, borrowing is significant as it facilitates the acquisition of start-up capital, capital goods, and household developments. Without borrowing and lending, these investments and consumption would not be possible as they require large sums of money to initialize. If firms and households depended on savings for capital and consumption expenditure, the rate of economic growth would be very slow. It would take many years to achieve the substantial amount needed for expansion and development projects.
Answer:
A. They ensure that people and businesses can buy what they need.
Hope this helps!
Explanation:
The President of PDQ Corporation buys PDQ shares in the open market. After holding them for 3 months fully paid, the President wishes to sell the shares. The shares can be sold:
Answers
There are different ways to share shares. The shares can be sold immediately.
In a sale of shares, a company's shareholders often sell the shares that is entitling ownership of the company to a specific buyer. In the transaction, all the rights and responsibilities that pertains to the ownership of shares are transferred to the buyer.
Note that as long as the 6-month holding period needed has fulfilled on the restricted shares, and therefore, when they are donated, the charity can sell the shares immediately. There is therefore no need for another 6-month holding period be taken again.
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The President of PDQ Corporation buys PDQ shares in the open market. After holding them for 3 months fully paid, the President wishes to sell the shares. The shares can be sold:
A. immediately
B. after holding the securities for an additional 3 months
C. after holding the securities for an additional 6 months
D. after holding the securities for an additional 1 year
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How do restaurants promote drinks?
Answers
by Run Happy Hours or Run Loyalty Programs restaurants promotes drinks.
If Happy Hours aren't included in the list of suggestions for bar promotions, it won't be complete. Running a happy hour or one-on-one plan is one of the most tried and true strategies to advertise your bar and draw in many patrons on quiet nights or even throughout the day.
Such bar concepts not only increase your liquor's sales but also serve as brand ambassadors by drawing attention to your company. To generate buzz, you can post about it on your social media profiles and even send private messages to your frequent customers to remind them to come see you. Utilizing the current client data in your POS, you may launch these ads using your restaurant management software.
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The job _______ results in two written statements: one that specifies the responsibilities, duties and working conditions of the job, and the other setting forth the minimal education and skills required to do the job. specification description analysis assessment
Answers
Answer:
The word "Analysis" would most likely fit the statement.
Explanation:
The job analysis results in two written statements: one that specifies the responsibilities, duties, and working conditions of the job, and the other setting forth the minimal education and skills required to do the job.
why do economists use game theory to explain oligopolies?
Answers
Economists use game theory to explain oligopolies because game theory allows for the examination of strategic interactions between firms in an oligopoly.
Game theory is a branch of mathematics that studies strategic decision making and how the choices of one individual or firm can impact the choices of others. In an oligopoly, there are a small number of firms that dominate a particular market, and the actions of one firm can have a significant impact on the other firms in the market.
By using game theory, economists can model the interactions between firms and predict how they will respond to each other's actions. This can help to explain the behavior of firms in an oligopoly and provide insight into how oligopolies operate.
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Name the FIVE documents that must be covered by the auditor's report?
Answers
Answer:
The auditor's report typically covers the following five documents:
1)Financial Statements: The auditor's report provides an opinion on the fairness and accuracy of the financial statements prepared by the company. This includes the balance sheet, income statement, cash flow statement, and statement of changes in equity.
2)Management's Discussion and Analysis (MD&A): MD&A is a section of the annual report where management provides an analysis of the company's financial performance, results of operations, and future prospects. The auditor's report may reference or provide assurance on specific information contained in the MD&A.
3)Notes to the Financial Statements: The notes to the financial statements provide additional information and explanations regarding specific items in the financial statements. The auditor's report may refer to the notes and provide assurance on their presentation and disclosure.
4)Internal Control Report: In some cases, companies are required to provide an internal control report, which outlines management's assessment of the effectiveness of internal controls over financial reporting. The auditor's report may include a reference to the internal control report and provide assurance on its reliability.
5)Other Supplementary Information: The auditor's report may also reference or provide assurance on other supplementary information included in the annual report, such as schedules, disclosures, or additional financial data that accompany the financial statements.
It's important to note that the specific documents covered by the auditor's report may vary depending on the reporting requirements and regulations applicable to the company or organization being audited.
JohnBoy Industries has a cash balance of $54,000, accounts payable of $134,000, inventory of $184,000, accounts receivable of $219,000, notes payable of $129,000, and accrued wages and taxes of $41,500. How much net working capital does the firm need to fund?
Answers
Answer:Net working capital = $152,500
Explanation:
Net working capital = CA– CL
Where CA= Current Assets = Cash + Inventory + Accounts Receivable
and CL= Current Liabilities= Account payable + Notes payable + accrued wages and taxes
CA=$54, 000 + $184,000 + $ 219,000 =$457,000
Current liabilities = Account payable + Notes payable + accrued wages and taxes
CL = $134,000 + $129,000 + $41,500 = $304,500
Net working capital = Current assets – Current liabilities
Net working capital = $457,000 – $304,500= $152,500
Net working capital = $152,500
Matt works part-time and is paid $6.75 per hour. Determine Matt's gross pay (hours worked x hourly rate of pay) for last week when he worked 20.25 hours. Round your answer to the hundredths place.
Answers
Answer:
Matt's gross pay (hours worked x hourly rate of pay) for last week when he worked 20.25 hours is equal to $136.69
Explanation:
Per hour amount paid to Matt = $6.75
Total number of hours worked by Matt = 20.25
To find Gross pay, multiply hours worked and hourly rate of pay.
Therefore,
Matt's gross pay (hours worked × hourly rate of pay) for last week when he worked 20.25 hours \(=20.25(6.75)=\$136.6875\) ≈ $136.69