For tax reasons, your client wishes to purchase an annuity that pays $80,000 each year for 6 years, with the first payment in one year. At an interest rate of 8% and focusing on time value of money without consideration of any fees, how much would the client need to invest now

Answers

Answer 1

Answer:

$369,830.37

Explanation:

Present value can be calculated using a financial calculator

Cash flow from year  1 to 6 = 80,000

i = 8%

pv = $369,830.37

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  


Related Questions

You are considering purchasing a piece of industrial equipment that costs 30000. You decide to make a down payment in the amount of 5000 and to borrow the remainder from a local bnak at an interest rate of 9% compounded monthly, which is to be paid for 36 monthly installments. The amount of the monthly payment is nearest to:_________

a. $954
b. $833
c. S795
d. $694

Answers

Answer:

b

Explanation:

Value stream mapping (VSM):_____.
a. is typically done once an organization has converted to a lean system.
b. facilitates identifying sources and causes of waste.
c. has the potential to increase the carbon footprint.
d. is applied only in push production systems.

Answers

Answer:

b. facilitates identifying sources and causes of waste

Explanation:

Value-stream mapping can be regarded as material and information flow mapping, it can be explained as

lean-management method used in

analyzing of the current state as well as designing of future state as regards

series of events that is involved in taking a product/service from the starting of the particular process until the product/service gets to the customer. It should be noted that Value stream mapping (VSM) facilitates identifying sources and causes of waste

Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 5 bars and the price is Rs.600 per bar. In year 2, the quantity produced is 6 bars and the price is Rs.750 per bar. In year 3, the quantity produced is 7 bars and the price is Rs.825 per bar. Year 1 is the base year. What is nominal GDP for year 1? What is real GDP for year 2? What is real GDP for year 3? What is the GDP deflator for year 2? What is the GDP deflator for year 3? What is the percentage growth rate of real GDP from year 2 to year 3? (Please avoid typing % sign)

Answers

Answer:

An apple, potato, and onion all taste the same if you eat them with your nose plugged

Explanation:

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South Wales Sales $ 1,144,000 $ 2,220,000 Average operating assets $ 520,000 $ 600,000 Net operating income $ 125,840 $ 177,600 Property, plant, and equipment (net) $ 252,000 $ 202,000 Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 2. Which divisional manager seems to be doing the better job?

Answers

Answer:

Outback Brewing, Ltd., of Australia

                                  Queensland     New South Wales

1. Rate of return             5%                           2.16%

2. Based on the computed Rate of Return, Division Queensland seems to be doing a better job than New South Wales

Explanation:

a) Data and Calculations:

                                                              Queensland     New South Wales

Sales                                                       $ 1,144,000        $ 2,220,000 Average operating assets                     $ 520,000            $ 600,000

Net operating income                             $ 125,840             $ 177,600

Property, plant, and equipment (net)    $ 252,000           $ 202,000

Sales margin =                                            11%                            8%

Capital turnover ratio =                              2.2                            3.7

Return on investment (ROI) =                    5%                            2.16%

Sales margin = Net operating income/Sales * 100

Capital turnover ratio = Sales/Average operating assets

ROI = Sales margins divided by the firm's capital turnover ratio

Tin Roof's net cash flows for the next three years are projected at $72,000, $78,000, and $84,000, respectively. After that, the cash flows are expected to increase by 3.2 percent annually. The aftertax cost of debt is 6.2 percent and the cost of equity is 11.4 percent. What is the value of the firm if it is financed with 40 percent debt and 60 percent equity

Answers

Answer: $1282620.4

Explanation:

First, we'll calculate the weighted average cost of capital which will be:

= (Weight of debt × After cost of debt) + (Weight of equity × Cost of equity)

= (40% × 6.2%) + (60% × 11.4%)

= (0.4 × 0.062) + (0.6 × 0.114)

= 0.0248 + 0.0684

= 2.48% + 6.84%

= 9.32%

The present value calculated is $195424.56 (Check attachment)

Then, the terminal value for cash flow will be $1084195.40 (Check attachment)

Then, the value of the firm will be:

= Present value of cash flow + Terminal value for cash flow

= $195424.56 + $1084195.40

= $1282620.4

Therefore, the value of the firm is $1282620.40.

$
$
$
2,400.00
1,560.00
4,800.00
15,672.00
50,001.00
las en
50,000.00
50,001.00
(1.00)
$

Answers

Answer:

english pls

Explanation:

On the issuance date, Saucedog Inc. had a Bonds Payable account with a balance of $55,000,000 and Premium on Bonds Payable account with a balance of $5,000,000. How much cash did Saucedog Inc. collect when these bonds were issued

Answers

Answer:

the cash collected in the case when the bonds are issued is $60,000,000

Explanation:

The computation of the cash collected in the case when the bonds are issued is shown below:

Bonds payable [Face value] $55,000,000

Add: Premium on Bonds payable [Unamoritzed] $5,000,000

Issue price of the bonds $60,000,000

Hence, the cash collected in the case when the bonds are issued is $60,000,000

Your goal is to have $10,000 in your bank account by the end of 15 years. If the interest rate remains constant at 3% and you want to make annual identical deposits, how much will you need to deposit in your account at the end of each year to reach your goal? (Note: Round your answer for PMT to two decimal places.)

Answers

Answer:

the pmt is $537.67

Explanation:

The computation of the PMT amount is given below;

Given that

FV = $10,000

PV = $0

NPER = 15 years

RATE = 3%

The formula is shown below:

= PMT(RATE, NPER,PV,FV,TYPE)

AFter applying the above formula, the pmt is $537.67

The same should be considered and relevant

Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

Answers

Answer and Explanation:

The computation is shown below:

a. The amount that should be paid is

= $4,500 - $1,200 - ($4,500 - $1,200) × 2%) + $140

= $4,500 - $1,200 - $66 + $140

= $3,374

And,

b.  The amount that should be paid is

= $7,650 - $450 - ($7,650 - $450) × 1%

= $7,650 - $450 - $72

= $7,128

In this way the amount to be paid in full could be determined

Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,100 units) $ 248,500 $ 35.00 Variable expenses 134,900 19.00 Contribution margin 113,600 $ 16.00 Fixed expenses 55,800 Net operating income $ 57,800 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 6,100 units?

Answers

Answer:

1. Particulars                                             Amount

Sales total (7,150 * $35)                          $250,250

Less: Variable expenses (7,150 * $19)   $135,850

Contribution margin                                $114,400

Less: Fixed expenses                             $55,800

Net operating income                            $ 58,600

2.  Particulars                                            Amount

Sales total (7,050 * $35)                          $246,750

Less: Variable expenses (7,050 * $19)   $133,950

Contribution margin                                 $112,800

Less: Fixed expenses                              $55,800

Net operating income                             $ 57,000

3. Particulars                                             Amount

Sales total (6,100* $35)                           $213,500

Less: Variable expenses (6,100 * $19)    $115,900

Contribution margin                                 $97,600

Less: Fixed expenses                              $55,800

Net operating income                             $ 41,800

To meet projected annual sales, Bluegill Manufacturers, Inc. needs to produce 75,000 machines for the year. The estimated January 1 inventory is 7,000 units, and the desired December 31 inventory is 12,000 units. What are projected sales units for the year?

Answers

Answer:

70,000

Explanation:

Calculation to determine What are projected sales units for the year

Using this formula

Projected sales units=Production-during the year+Estimated beginning inventory-Desired ending inventory

Let Plug in the formula

Projected sales units=75,000+7000-12000

Projected sales units=70,000

Therefore the projected sales units for the year will be 70,000

The current stock price of Alcoco is $40, and the stock does not pay dividends. The instantaneous risk-free rate of return is 7%. The instantaneous standard deviation of Alcoco's stock is 25%. You want to purchase a put option on this stock with an exercise price of $45 and an expiration date 30 days from now. According to the Black-Scholes OPM, you should hold __________ shares of stock per 100 put options to hedge your risk. Assume 365 days in a year
a) 59
b) 99
c) 55
d) 94

Answers

The answer would be 55

cách huy động vốn của công ty bảo hiểm

Answers

How to raise capital from an insurance company?

Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cellular phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 Direct labor 25 Selling and admin. exp. 140,000 Factory overhead 40 Selling and administrative expenses 25 Total $240 Smart Stream desires a profit equal to a 30% rate of return on invested assets of $1,200,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. Total variable costs $ fill in the blank 1 Variable cost amount per unit $ fill in the blank 2 b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places. fill in the blank 3 % c. Determine the selling price of cellular phones. If required round to the nearest dollar. $ fill in the blank 4 per phone

Answers

Answer:

Smart Stream Inc.

1. Total variable costs = $2,400,000

2a. Variable cost per unit = $240

2b. The variable cost markup percentage = 12.46%

2c. Selling price per unit = $325

Explanation:

a) Data and Calculations:

Variable costs per unit:          

Direct materials                               $150            

Direct labor                                         25              

Factory overhead                               40

Selling and administrative expenses 25

Total                                                $240

Fixed costs:

Factory overhead       $350,000

Selling and admin. exp. 140,000

Total fixed costs =      $490,000

Smart Stream desires a profit equal to a 30% rate of return on invested assets of $1,200,000

Profit target = $360,000 ($1,200,000 * 30%)

Total variable costs = $2,400,000 ($240 * 10,000)

Variable cost per unit = $240

b. The variable cost markup percentage =

Variable cost markup = $360,000 * $2,400,000/$2,890,000 = $298,962

Variable cost markup percentage = $298,962/$2,400,000 * 100 = 12.46%

Fixed cost markup = $360,000 * $490,000/$2,890,000 = $61,038

Total cost = $2,890,000

Target profit     360,000

Total sales revenue = $3,250,000

Selling price = $325 ($3,250,000/10,000)

discuss how business risks are both inevitable and unavoidable​

Answers

Answer:

Risk is inevitable in everything we do. ... There may be some unlikely but high impact risks, for example, the risk that the solution could cause the destruction of the organisation (see the case studies below). The good Project Manager will constantly assess the risks and take action as needed.

Assume that Tree Co. has the ability to discontinue both product lines and rent the factory space previously used for the production of Leaves and Bark. The factory space for Leaves can be rented out for $25,000 a year, and the factory space for Bark can be rented for $27,000 a year. Which product lines should Tree Co. discontinue and rent out instead?

Answers

Answer:

Both Leaves and Bark should be discontinued and rented out

Explanation:

Calculation to determine whether Both Leaves and Bark should be discontinued and rented out

LEAVES BARK

Sales eliminated $(30,000)$(50,000)

Variable costs eliminated $10,000 $25,000

Net loss from discontinuation($20,000)($25,000)

($-30,000+$10,000=-$20,000)

(-$50,000+$25,000=-$25,000)

Rental income gained $25,000 $27,000

Increase in operating income $5,000 $2,000

($25,000-$20,000=$5,000)

($27,000-$25,000=$2,000)

Therefore based on the above calculation both Leaves and Bark SHOULD BE DISCONTINUED reason been that the NET LOSS for each is LESSER than the annual rental income.

Calculating the price elasticity of demand: A step-by-stepguideSuppose that during the past year, the price of a laptop computer rose from $2,950 to $3,110. During the same time period, consumer sales decreased from 468,000 to 296,000 laptops.Calculate the elasticity of demand between these two price–quantity combinations by using the following steps. After each step, complete the relevant part of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.)Original New Average Change Percentage ChangeQuantity a. -45.03%
b. -22.51%
c. 222.09%Price a. 1,893.75% b. 5.28% c. 2.64%Step 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price.Step 2: Calculate the average quantity by adding the original quantity and the new quantity, and then dividing by two. Do the same for the average price.Step 3: Calculate the change in quantity by subtracting the original quantity from the new quantity. Do the same for the change in price.Step 4: Calculate the percentage change in quantity demanded by dividing the change in quantity by the average quantity. Do the same to calculate the percentage change in price.Step 5: Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoring the negative sign.Using the midpoint method, the elasticity of demand for laptops is about
a. 0.12
b. 4.26
c. 8.53
d. 17.06

Answers

Answer:

original quantity = 468,000

Average quantity = 382,000

new quantity = 296,000

a. -45.03%

original price - $2,950

new price = $3,110

Average price = 3030

3. -172,000

$160

b. 5.28%

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price  

Average quantity = (468,000 + 296,000) / 2 = 382,000

Average price = ($2,950  + $3,110) / 2 = 3030

Change in quantity = 296,000 - 468,000 = -172,000

Change in price = $3110 - $2950 = $160

percentage change in quantity demanded = (-172,000 /  382,000) x 100 = -0.4503 = -45.03%

percentage change in price = 160 / 3030 x 100 = 5.28%

Elasticity of demand = -45.03% / 5.28% = -8.53 = 8.53

Population and it’s distribution constitutes the target market for goods and services. This can be linked with ____________
A. Financial environment
B. Social environment
C. Political environment
D. Demographic environment

Answers

Population and it’s distribution constitutes the target market for goods and services. This can be linked with social environment.

Both corrective taxes and tradable pollution permits reduce the cost of environmental protection and thus should increase the public's demand for a clean environment. b. Both corrective taxes and tradable pollution permits provide market-based incentives for firms to reduce pollution. c. Tradable pollution permits have an advantage over corrective taxes if the government is uncertain as to the optimal size of the tax necessary to reduce pollution to a specific level. d. Corrective taxes set the maximum quantity of pollution, whereas tradable pollution permits fix the price of pollution.

Answers

Answer:

d. Corrective taxes set the maximum quantity of pollution, whereas tradable pollution permits fix the price of pollution.

Explanation:

The government applied the alternatives for the policy in order to control the pollution problem

here following two vital policy alternatives i.e.

1. Corrective taxes

2. Permits of Tradable pollution

The corrective taxes impose the per unit tax with regard to the pollution i.e. emitted. Also it fixed the pollution price  

Here there is a permit of the tradable pollution that could set the pollution limit i.e. maximum. On the other hand, the firm could emit the pollution till the quantity mentioned by the permit of the tradable permit  

So, the option d should be considered

Acme, Inc., incurs the following costs during May:
Sales expense $ 12,100 Administrative expense $ 22,100
Direct labor 26,600 Plant depreciation 6,800
Factory supplies 3,100 Indirect labor 8,600
Advertising 3,400 Utilities 10,600
Raw material used 18,600
80% of this amount relates to the factory.
Required:
Calculate Acme�s total manufacturing costs for May.

Answers

Answer:

Particulars                                            Amount

Raw material used                               $18,600

Add: Direct labor                                 $26,600

Overhead costs

Factory supplies                 $3,100

Plant depreciation              $6,800

Indirect labor                      $8,600

Utilities ($10,600*80%)       $8,480  

Total overhead cost                             $26,980

Total manufacturing costs                 $72,180

With an aggregate supply function that is continually positively sloped (LRAS), a reduction in aggregate demand leads to: Group of answer choices Falling prices cost-push interest rate Perpetual growth Rising prices Falling Employment

Answers

Answer: Falling prices

Explanation:

When Aggregate demand reduces, the Aggregate demand curve will have to shift leftward to depict this and in doing so, it would intersect with the Long Run Aggregate Supply curve at a lower price level thereby leading to a fall in prices.

Aggregate demand reducing means that there is less money being spent in the economy and should this be the case, the economy is going to contract and unless the Aggregate demand was above potential GDP then this is not ideal.

A buyer uses a periodic inventory system, and it purchases $4,000 of merchandise on credit terms of 2/10, n/30 on December 5. On December 15, it pays the invoice in full. Prepare the buyer's necessary journal entry for payment by selecting the account names from the drop-down menus and entering dollar amounts in the Debit and Credit columns.

Answers

Answer:

Explanation:

Purchase discount = $4000 * 2% = $80

Date       Accounts title                  Debit    Credit

Dec-15    Accounts Payable         $4,000

                    Purchase Discounts                $80

                    Cash                                         $3,920

               (To record payment within discount term of 10 days)

Armstrong Security produces a variety of commercial burglar alarms. Their least expensive model has a demand of 400 units per day, the current lead time for this model is 2 days. They use containers that hold 20 alarms and use 44 Kanbans. What is their current safety stock policy (in percentage)?

Answers

Answer:

10%

Explanation:

Demand (D) = 400 per day, Lead time (L) = 2 days, Container capacity (C) = 20, Kanban (K) = 44. Let X represent safety factor

K = D * LT * (1+X) / C

44 = 400 * 2 * (1+X) / 20

880 = 400 * 2 * (1+X)

1 + X = 880 / 800

1 + X = 1.1

X = 1.1 - 1

X = 0.1

X = 10%

So therefore, their current safety stock policy is 10%

Dmitri loves watching Downton Abbey on his local public TV station, but he never sends any money to support the station during its fundraising drives. Economists would call Dmitri a . True or False: The government cannot solve the problem caused by people like Dmitri. True False True or False: The private market can solve this problem by broadcasting Downton Abbey on cable TV, since then the good would be excludable and thus no longer a public good. True False

Answers

B. The private marker can solve this problem by broadcasting Downton Abbey on cable TV, since then the good would excludable and thus no longer a public good.

This would solve the money problem, by making it so that people have to pay to watch, which will generate more income.

Which career pathways require arm and hand steadiness as a qualification?

Biotechnology, Diagnostics, and Health Informatics

Biotechnology, Diagnostics, and Therapeutics
Therapeutics, Support Services, and Diagnostics
Therapeutics, Health Informatics, and Support Services

Answers

Answer:

C.

Explanation:

Therapeutics, Support Services, and Diagnostics

Answer:

C. Therapeutics, Support Services, and Diagnostics.

correct on edge unit test

This is a question I have on my Unit Test as I am typing this.

Explanation:

13. Social Entrepreneurs identify social needs such as
a. The arts and education
c. Shipping and operations
b. Internet and technology
d. Profit and loss

Help

Answers

The social needs the internet and technology because they need it for the social entrepreneurs

A stock has an expected return of 11.85 percent, its beta is 1.24, and the expected return on the market is 10.2 percent. What must the risk-free rate be?

Answers

Answer:

3.325%

Explanation:

The computation of the risk free rate of return is shown below:

As we know that

Expected rate of return = risk free rate of return + beta × (market rate of return - risk free rate of return)

11.85% = Risk Free Rate + ( 10.2% - Risk Free Rate) × 1.24

11.85% = Risk Free Rate + 12.648% - 1.24 × Risk Free Rate

0.24 × Risk Free Rate = 12.648 % - 11.85%

Risk Free Rate= (12.648 % - 11.85%) ÷  0.24

= 3.325%

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the bottleneck time

Answers

Answer:

9

Explanation:

Given that

There is five stations who have the process time of 5,9,4,9 and 8

We need to find out the bottleneck time

so, as we know that the bottleneck is the duration of the activity who have longer time

So as per the given situation the 9 has the longest duration activity time

So, the same is to be considered

Scenario: Roberto Baldwin As the owner and manager of Fantastic Toys, Roberto Baldwin is fascinated by all the changes occurring and transforming the workplace. Roberto is concerned about the important OB trends that he can understand and take advantage of in developing and positioning his company in the marketplace. If Roberto wants to study deep-level diversity in his organization, he should

Answers

Answer: increases its connectivity with people and organizations in other parts of the world.

Explanation:

You can check the options online on the site.

Deep-level diversity simply refers to the traits that are non-observable which such as norms, attitudes, beliefs, and values.

Since Roberto wants to study deep-level diversity in his organization, therefore, he should increases its connectivity with people and organizations in other parts of the world. This will help him in learning about the norms and values of other people.

Suppose a consumer with an income of $100 is faced with Px = 1 and Py = 1/2. What is the market rate of substitution between good X (horizontal axis) and good Y (vertical axis)? A. 0.50 B. -1.0 C. -2.0 D. -4.0

Answers

Answer:

The correct option is C. -2.0.

Explanation:

The Market Rate of Substitution can be described as the rate at which one good can be exchanged for another at current market prices.

Given:

Px = 1

Py = 1/2, or 0.5

The MRSxy which is market rate of substitution between good X (horizontal axis) and good Y (vertical axis) can be calculated as follows:

MRSxy = - Px / Py = - 1/ 0.5 = -2,0

Therefore, the correct option is C. -2.0.

Other Questions
pls help asap no bots, and unnecessary answers or I will report, I will mark brainliest IF CORRECT What is the radius of C? QUESTION 4During fermentation, Yeast break down sugar producing.A. water, alcohol and heat.B water, carbon dioxide and heat.c. Carbon dioxide, water and alcoholD. alcohol carbon dioxide and energy. Find the length of the arc of a circle of diameter 6 meters subtended by a central angle of 2/3 radians. NO LINKS OR ELSE YOU'LL BE REPORTED! Only answer if you're very good at English.No guessing please.Part 2 of the "Fitness Gaming" section: Another health benefit of video games is improved eyesight.You know those eye charts that doctors have you read to test your vision?A study at the University of Rochester showed that playing video games improved vision test results by 20 percent.So, just ignore anyone who says "You'll go blind playing video games". You'll know that video games actually sharpen people's vision.Which statement BEST describes the author's point of view about video games in the section " Fitness Gaming"?Author's Point of View: A: People look silly when playing video games that require them to move around a lot.B:, Video games can have health benefits such as better fitness and eyesight.C: Playing video games makes some teens lazy and unhealthy.D: Video games that provide exercise are a lot of fun. which two ratios represent quantities that are proportional help i will mark as brainless SOMEONE SMART PLEASE HELP!! if ax^2+bx+c=0, and a0, then x= A mechanical machine requires 210 J of work to do 115 J of work in lifting a crate. What is the efficiency of the machine? Which statement best describes the function below?f(x) = 2x3 + 2121A. It is not a function,B. It is a many-to-one function,0 OOOC. It fails the vertical line test.D. It is a one-to-one function! explain the concept of gaseous exchange in humans The perimeter of a rectangle is 32 inches. The length is 1 foot. What is the width of the rectangle in inches? A. 4 inches B. 10 inches C. 15 inches D. 20 inches 12 / 15 nalaman ko mula sa araling tinalakay na maraming kasawiang pinagdaanan si dr. rizal habang isinusulat niya ang nobela tulad ng Which of the following expressions is equal to the value of x? A. 12/(sin15) B. (sin15)/12 C. 12(sin15) ab - 0.5b when a = 1 and b = 5 A group of 23 friends gets together to play a sport. First, people must bedivided into teams. Each team has to have exactly 4 players, and no one canbe on mpre than one team. How many teams can they make? (It is possiblethat not everyone can be on a team.) 4. What is the conditional relative frequency that a customer prefers pepperoni given that the customer is female? 14 perfer pepperoni Which of the following are remote interior angles of Z1? Check all that apply.15632.A. 24B. 23C. 22D. 26E. 21F. 25 PLSSS HELPPP MEEEE I NEED IT FAST BEFORE 9am PLSS technician A says that incandescent bulbs resist vibration well. Technician B says that HID headlamps require up to approximately 25,000 volts to start. Who is correct Jeremy read that the population of his town increased by 10% in the 1980s,and then increased by another 10% in the 1990s.What is the population at the end of the 1990s?