Answer:
C)
Explanation:
Solo Corp. is evaluating a project with the following cash flows:
Year Cash Flow 0 $28100 1 10,300 2 13,000 3 14,900 4 12,000 5 — 8,500
The company uses an Interest rate of 8 percent on all of Its projects.
a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places. e.g., 32.16.)
b. Calculate the MIRR of the project using the reinvestment approach. (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
a. Discounting approach MIRR %
b. Reinvestment approach MIRR %
c. Combination approach MIRR €Y.
Answer and Explanation:
The computation of MIRR under the following methods are shown below:
a. Using the Discounting Approach:
Interest Rate = 8%
The Present Value of Cash Outflows os
= -$28,100 - $8,500 ÷ 1.08^5
= -$33,884.96
Now
Let us assume the MIRR be i%
So,
0 = -$33,884.96 + $10,300 ÷ (1 + i) + $13,000 ÷ (1 + i)^2 + $14,900 ÷ (1 + i)^3 + $12,000 ÷ (1 + i)^4
Now use the financial calculator, after using it i is 17.18%
Thus, MIRR is 17.18%
b. Using the Reinvestment Approach:
Interest Rate = 8%
The Future Value of Cash Flows is
= $10,300 × 1.08^4 + $13,000 × 1.08^3 + $14,900 × 1.08^2 + $12,000 × 1.08 - $8,500
= $52,228.65
Let us assume MIRR be i%
So,
0 = -$28,100 + $52,228.65 ÷ (1 + i)^5
(1 + i)^5 = 1.85867
1 + i = 1.1320
i = 0.1320
= 13.20%
Thus, MIRR is 13.20%
c. Using the Combination Approach:
Interest Rate = 8%
Present Value of Cash Outflows is
= -$28,100 - $8,500 ÷ 1.08^5
= -$33,884.96
And,
Future Value of Cash Inflows is
= $10,300 × 1.08^4 + $13,000 × 1.08^3 + $14,900 × 1.08^2 + $12,000 × 1.08
= $60,728.65
Let us assume MIRR be i%
So,
0 = -$33,884.96 + $60,728.65 ÷ (1 + i)^5
(1 + i)^5 = 1.7922
1 + i = 1.1238
i = 0.1238
= 12.38%
Thus, MIRR is 12.38%
Suppose the spot rate of the pound today is $1.70and the three-month forward rate is $1.75. How can a U.S. importer who has to pay 20,000pounds in three months hedge the foreignexchange risk?
Answer: £35000
Explanation:
From the question, we are informed that the spot rate of the pound today is $1.70 and the three-month forward rate is $1.75.
Based on the above information, if
The importer buys £20,000 at $1.75/£ and therefore pays the amount in 90 days as:
£20,000 x $1.75/£
= £35,000
True or False. Your employer is responsible to make contributions, on your behalf, to the Federal Insurance Contributions Act (FICA).
Answer:
True
Explanation:
Plz mark brainliest thxxx :) hope it helps
Your employer is responsible to make contributions, on your behalf, to the Federal Insurance Contributions Act (FICA) is a true statement.
The employers is the one that is responsible for paying employees contributions on their behalf for FICA by the fact that Employers do withhold FICA taxes from employees' wages, and therefore pay employer FICA taxes and later on go and report both the employee and employer shares to the IRS.Conclusively, the FICA taxes are payroll taxes that is used in handling social security and Medicare and as such, both employees and employers must contribute their fair share.
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Type the correct answer in the box. Spell all words correctly.
What do inventory firms use when moving delicate products?
Inventory firms use_
belts when moving delicate products.
Answer:
Conveyor belts.
Explanation:
Conveyor belts are a never ending flexible belt which is moved by chain of rollers for carrying objects from one place to another. Conveyor belts is an important tool used in material industry for transporting materials in bulk from one place to another. The material handling industries use conveyor belts to move bulky products such as salt, grain, ore, etc from one place to another.
The inventory firms use conveyor belts to move delicate products from one place to another.
Therefore, conveyor belts is the correct answer.
Answer:
Conveyor belts
Explanation:
A provider of oil for home heating systems is offering $100 off its first delivery to new customers. This is an example of which sales promotion tactic?
a. Contest
b. Free gift with purchase
c. Bonuses
d. Push money
Answer:
b. Free gift with purchase
Explanation:
The promotion tactic that the provider is trying to use is a Free gift with purchase. This is because by making your first every purchase the company is basically gifting you a certain amount of money through a discount of your purchasing total. Companies tend to do this in order to attract customers through the enticement of free money or products/gifts. They are able to do this because a single purchase will make them more profit than they are wasting on the gift and can lead to recurring customers.
If the abnormal return for a stock during the first week is +5 percent and +3 percent during the second week, what is the abnormal return for the two-week period?
A) 5 percent
B) 3 percent
C) 8.15 percent
D) 8 percent
Answer:
C) 8.15 percent
Explanation:
The computation of the abnormal return for the two week period is as follows:
Abnormal return is
= (1 + first week abnormal return) × (1 + second week abnormal return) - 1
= (1 + 5%) × (1 + 3%) - 1
= 1.0815% - 1
= 8.15%
Hence, the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
The FICA (social security) tax is a matching tax with a portion paid by both the employer and the employee.
A. True
B. False
Answer:
A) true
Explanation:
FICA Tax can be regarded as matching tax, it is been paid by the employees and employers at equal rate. The tax can be divided into Social Security tax as well as Medicare tax. It shouldbe noted the FICA (social security) tax is a matching tax with a portion paid by both the employer and the employee.
When a single broker represents both parties in a real estate transaction, a _______ agency may exist.
Answer:
Dual
Explanation:
real estate transaction,which is used to convey ownership of a particular property to the buyer whereby there is a mutual agreement on some terms. The contract may be long it in shirt time.the end process is usually reffered to as “closing,” and this is a term that explains that both parties need to fulfill all terms and conditions that is associated with the exchange.
It should be noted that When a single broker represents both parties in a real estate transaction, a dual agency may exist.
A reduction in the tax rate on pass-through business income to a maximum of 25 percent would ________ the return to entrepreneurship, and this would ________ aggregate supply.
Answer:
A reduction in the tax rate on pass-through business income to a maximum of 25 percent would ___increase_____ the return to entrepreneurship, and this would __increase______ aggregate supply.
Explanation:
This is the expected outcome that should naturally follow a tax rate reduction. The returns available to the entrepreneurs would increase, thus, increasing the aggregate supply, since production (GDP) would increase from the increased productivity of the entrepreneur. Then the entrepreneurs would be able to plough back some of their returns into the business. As a result, the overall market productivity will be increased and the goods available to the market would also increase proportionately.
If a 3D printer increased in cost at exactly the inflation rate, what was the inflation rate if the printer costs exactly twice as much now as it did 10 years ago?
Answer:
7.18% per year
Explanation:
Calculation for the inflation rate
Using this formula
Inflation rate =1(1 + f)^10 =2
Inflation rate = (1 + f) =2^0.1
Inflation rate=( 1.0718f-1)*100
Inflation rate = 0.0718 *100
Inflation rate=7.18%
Therefore the inflation rate will be 7.18% per year
2. A series of five constant dollar (or real-dollar) payments, beginning with $6,000 at the end of the first year, are increasing at the rate of 5% per year. Assume that the average general inflation rate is 4%, and the market interest rate is 11% during this inflationary period. What is the equivalent present worth of the series
Answer:
The equivalent present worth of the series is $27,211.16.
Explanation:
The first thing to do is to calculate the real interest using the following formula:
1 + i = (1 + r)(1 + inf) ..................... (1)
Where;
i = market interest rate = 11%, or 0.11
r = real interest rate = ?
inf = average general inflation rate = 4%, or 0.04
Substituting the values into equation (1) and solve for r, we have:
1 + 0.11 = (1 + r)(1 + 0.04)
1 + r = 1.11 / 1.04
1 + r = 1.06730769230769
r = 1.06730769230769 – 1
r = 0.06730769230769
The equivalent present worth of the series can now be calculated using the formula for calculating the present value (PV) of a growing annuity as follows:
PVga = (P / (r - g)) * (1 - ((1 + g) / (1 + r))^n) .................... (2)
Where;
PVga = present value of a growing annuity or equivalent present worth of the series = ?
P = constant dollar (or real-dollar) payments = $6,000
r = real interest rate = 0.06730769230769
g = growth rate of payments = 5%, or 0.05
n = number of years = 5
Substituting the values into equation (2), we have:
PVga = (6000 / (0.06730769230769 - 0.05)) * (1 - ((1 + 0.05) / (1 + 0.06730769230769))^5)
PVga = 346,666.666666712 * 0.078493722845371
PVga = $27,211.16
Therefore, the equivalent present worth of the series is $27,211.16.
The government decides to reduce income taxes due to a recession in the economy over the past nine months. The reduction in income taxes will effectively boost spending in the economy if:__________.
A) Ricardian equivalence does not hold-people choose to save the majority of the extra income they now take home.
B) Ricardian equivalence does not hold-people choose to spend the majority of the extra income they now take home.
C) Ricardian equivalence holds--people choose to spend the majority of the extra income they now take home.
D) Ricardian equivalence holds-people choose to save the majority of the extra income they now take home.
Answer:
B) Ricardian equivalence does not hold-people choose to spend the majority of the extra income they now take home.
Explanation:
According to the Ricardian equivalence, in this the consumer wants to enjoy the similar wealth all over the life due to which the deduction of the tax would not likely to rise the consumption of the consumers. They spent the similar amount. Also the consumer try to expect the loss arise in the future because of the tax rise and at the same time the government can increased the tax so that the loss i.e. spent would be balanced.
Now in the given situation if Ricardian equivalence grasp the income deduction so the consumption would not rise due to which the company can be within the recession
hence, the correct option is B.
What helps art directors ensure that ad vision works on the screen and allows cost effective critical changes to take place before production?
A.
Copywriting
B.
Storyboarding
C.
Animating
D.
Auditioning
Answer:
Storyboarding B
Explanation:
How much interest does a $407 investment earn at 6% over seven years?
Answer:
$170.94
Explanation:
interest is calculate using the formula
I= p x r x t
where p = principle amount: $407
r = interest rate: 6% or 0.06
t= time: 7 year
I= $407 x 0.06 x 7
I= $24.42 x 7
I= $170.94
Company Earnings per Share Market Value per Share
Hilton $ 12.00 $ 176.40
SPG 10.00 96.00
Hyatt 7.50 93.75
Accor 50.00 250.00
Compute the price-earnings ratio for each of these four separate companies.
Price-Earnings Ratio
Company Choose Numerator: Divided by Choose Denominator: Price-Earnings Ratio Price-earnings ratio
Hilton
SPG
Hyatt
Accor
Answer:
Price-Earnings Ratio = Market Value Per Share / EPS
Hilton Price-Earnings Ratio = 176.40 / 12
Hilton Price-Earnings Ratio = $14.7
SPG Price-Earnings Ratio = 96.00 / 10.00
SPG Price-Earnings Ratio = $9.6
Hyatt Price-Earnings Ratio = 83.75 / 7.50
Hyatt Price-Earnings Ratio = $12.5
Accor Price-Earnings Ratio = 250.00 / 50.00
Accor Price-Earnings Ratio = $5.0
In March, gross earnings of Perlman Company totaled $250,000. All earnings are subject to 7.65% FICA taxes, 5.4% state unemployment taxes, and 0.8% federal unemployment taxes.
A) Compute the employer's payroll tax expense.
B) Prepare the entry to record payroll taxes.
Answer:
A. Employer payroll tax expense includes FICA and State and Federal Unemployment tax.
= (250,000 * 7.65%) + (250,000 * 5.4%) + (250,000 * 0.8%)
= 19,125 + 13,500 + 2,000
= $34,625
B.
Date Details Debit Credit
March Payroll Tax expense $34,625
FICA Taxes $19,125
State Unemployment Taxes $13,500
Federal Unemployment Taxes $2,000
Basse Corporation has 7,000 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31.
Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Answer and Explanation:
The journal entries are as follows:
1. cash dividend Dr (7,000 shares × $1) $7,000
To Dividend payable $7,000
(Being the declaration of the dividend is recorded)
Here the cash dividend is debited as it increased the balance of the dividend and dividend payable is credited as it increased the liabilities
2. Dividend payable Dr $7,000
To Cash $7,000
(being the payment is recorded)
Here the dividend payable is debited as it decreased the liabilities and cash is credited as it also decreased the assets
The area that consumes the majority of a family’s income is
The area that consumes the majority of a family’s income is Housing.
This is according to the Bureau of Labor Statistics' info for 2017.
Smith Company sponsors a defined benefit pension plan. The beginning balance of plan assets is $5 million; the beginning balance of the PBO is $5.5 million; the expected rate of return is 8%, the discount rate is 6%, and the salary trend rate is 4%. The interest cost is equal to:___________.
Answer:
$330,000
Explanation:
Calculation for the interest cost
Using this is
Interest cost=Beginning balance of the PBO * discount rate
Let plug in the formula
Interest cost=$5.5 million * 6%
interest cost=$330,000
Therefore the interest cost is equal to:$330,000
. Define corporate-level strategy. What are the different levels of diversification firms
can pursue by using different corporate-level strategies?
Answer:
Tipos de diversificación empresarial
Explanation:
°Inversión propia. Constituye la fórmula de diversificación más seguida, puesto que supone echar mano de los recursos propios a la hora de intentar conquistar nuevos espacios productivos y clientes.
°Adquisición total o parcial de una empresa.
°Diversificación relacionada.
°Diversificación no relacionada.
A European call and put option on the same security both expire in three months, both have a strike price of 20, and both sell for the price 3. If the nominal continuously compounded interest rate is 10% and the stock price is currently 25 , identify an arbitrage.
Answer:
Call payoff = Max [0, Stock price - Strike price]
Call payoff = Max[0,25-20]
Call payoff = 5
Put payoff = Max[0, strike price - stock price]
Put payoff = max[0,20-25]
Put payoff = 0
Strike price = K = 20
Stock price = S = 25
interest rate = 10% = 0.1
Time to expiry = T = 3 months = 3/12 = 0.25
Put call parity: C + K*Exp(-r*T) = P + S
C = P + S - K*Exp(-r*T)
Call = 3 + 25 - 20*exp(-0.1*0.25)
Call = 28 - 19.5062 =
Call = 8.4938 > 3
So, yes there is an arbitrage . Implied value is 8.4938 but trades at 3.00; Call option is trading cheap hence we should buy more call options.
Which sentence depicts that alternate sales channels are cost effective for small businesses?
Alternative sales channels could work well for you if your product and target customer base profiles support them. These alternative channels can offer you a less competitive route to increased sales. Telemarketing is an example of one such alternative channel. It is the next most interactive medium after direct (face-to-face) sales.
Answer:
Telemarketing depicts that alternate sales channels are cost effective for small businesses is explained below with example.
Explanation:
Telemarketing is the straight marketing of assets or assistance to possible consumers over the communications or the Internet. Four standard varieties of telemarketing involve outbound calls, inbound calls, lead production, and sales calls. The benefits are it is manageable to reach out to consumers and it is cost-effective if done, fortunately.
Answer:
These alternative channels can offer you a less competitive route to increased sales.
Explanation:
Use Scenario: A Small-Town Monopolist. If this monopolist must choose between selling 100 or 175 subscriptions, it will choose to sell _____ units at a price of _____ and earn economic profits equal to _____.
a. 175; $10; $500.
b. 100; $10; $750.
c. 175; $15; $1,000.
d. 100; $15; $1,000.
Answer:
The correct option is d. 100; $15; $1,000.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Scenario: A Small-Town Monopolist A monopolist sells cable subscriptions in a small town and finds that it can sell 100 subscriptions when the price is $15 a week and 175 subscriptions when the price is $10 a week. The MC for the provision of the cable is $5 a week. There are no fixed costs.
Use Scenario: A Small-Town Monopolist. If this monopolist must choose between selling 100 or 175 subscriptions, it will choose to sell _____ units at a price of _____ and earn economic profits equal to _____.
Explanation of the answer is now given as follows:
Step 1: Calculation of profit when 100 subscriptions is sold
Total revenue = Number of subscriptions sold * Price a week = 100 * $15 = $1,500
Total cost = Number of subscriptions sold * MC a week = 100 * 5 = $500
Economic profit = Total revenue - Total cost = $1,500 - $500 = $1,000
Step 2: Calculation of profit when 175 subscriptions is sold
Total revenue = Number of subscriptions sold * Price a week = 175 * 10 = $1,750
Total cost = Number of subscriptions sold * MC a week = 175 * 5 = $875
Economic profit = Total revenue - Total cost = $1,750 - $875 = $875
Conclusion
Since the economic profit of $1,000 made when 100 subscriptions is sold is higher than the economic profit of $875 made when 175 subscriptions is sold, thee monopolist will choose to sell 100 units at a price of $15 and earn economic profits equal to $1,000.
Therefore, the correct option is d. 100; $15; $1,000.
Given the following data:
Net sales $430,000
Cost of goods sold $80,000
Gross profit $350,000
Operating expenses $50,000
Net income $300,000
In vertical analysis, net income would be expressed as: (Round your final answer to the nearest whole percent)
A. 12%.
B. 81%.
C. 70%.
D. 19%
Answer:
C. 70%.
Explanation:
Calculation for the net income
Using this formula
Net income=Net income/Net Sales
Let plug in the formula
Net income= $300,000/ $430,000
Net income=70%
Therefore the net income would be expressed as 70%
One of the 200 business majors at a college is to be chosen for the student senate. If 77 of these students are enrolled in a course in accounting, 64 are enrolled in a course in business law, and 92 are not enrolled in either course, how many of the outcomes correspond to the choice of a business major that is enrolled in both?
Answer:
the number of outcomes that enrolled in both is 33
Explanation:
The computation of the number of outcomes that enrolled in both is as follows:
= Enrolled in accounting course + enrolled in business law + enrolled in either course - total business majors
= 77 + 64 + 92 - 200
= 33 outcomes
hence, the number of outcomes that enrolled in both is 33
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Assume Marigold Corp. deposits $90000 with First National Bank in an account earning interest at 4% per annum, compounded semi-annually. How much will Marigold have in the account after three years if interest is reinvested?
a) $101354
b) $100800.
c) $90000.
d) $101238
Answer:
a) $101354
Explanation:
To calculate the future balance of the interest-earning account use following formula
FV = PV x ( 1 + r )^n
Where
FV = Future value = Balance of Interest-earning account after 3 years = ?
PV = present value = Amounr deposited in the account = $90,000
r = Periodic interest rate = 4% x 6/12 = 2%
n = Numbers of periods = Numbers of years x Compounding periods per year = 3 years x 2 periods per year = 6 periods
Placing values in the formula
FV = $90,000 x ( 1 + 2% )^6
FV = $101,354
Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $17,900 for March and $50,600 for April. What are the budgeted cash receipts from sales on account for April
Answer:
$26,075
Explanation:
Follow the Receipt Cycle that has been stated but this time focusing on the month of April
Receipts :
Collection for April Sales ( $50,600 × 25%) = $12,650
Collection for March Sales ( $17,900 × 75%) = $13,425
Total Collection in April = $26,075
Therefore, Total cash receipts from sales on account for April are $26,075.
James is an efficient sales professional. However, in the past few months, he hasn’t been performing to the best of his ability because of the change in modules. What should James’s manager do?
A.
change his team
B.
find out the cause of his behavior from his friends and relatives
C.
send him to another training session
D.
fire him because there’s no excuse for not performing well
Answer:
C. send him to another training session
Explanation
plato
Derik was fired from his job at the grocery store. The grocery store told him that the reason he was fired was because of his multiple nose and facial piercings. Derik had the piercings done to show his support for an outspoken political activist who is fighting for social justice.
Incomplete question. The full question read;
Is this prohibited discrimination under the Alberta Human Rights Act?
1) Yes: the prohibited ground would be race, and the prohibited area would be employment.
2) Yes: the prohibited area would be expression, and the prohibited ground would be employment.
3) No: the prohibited area is employment, but there is no prohibited ground.
4) Yes: Derik's freedom of expression is directly involved.
Answer:
1) Yes: the prohibited ground would be race, and the prohibited area would be employment.
Explanation:
The Alberta Human Rights Act prohibits discrimination in a company's employment practices. In other words, the Alberta Act covers discrimination in the area of employment.
Also, the prohibited ground would be race, since the very practice of having multiple nose and facial piercings is usually done among a particular race.
During self-construction of an asset by Richardson Company, the following were among the costs incurred: Fixed overhead for the year $1,000,000 Portion of $1,000,000 fixed overhead that would be allocated to asset if it were normal production 80,000 Variable overhead attributable to self-construction 100,000 What amount of overhead should be included in the cost of the self-constructed asset
Answer:
$180,000
Explanation:
Amount of overhead should be included in the cost of the self-constructed asset = Fixed overhead that would be allocated to asset + Variable overhead attributable to self-construction
= $80,000 + $100,000
= $180,000
Thus, $180,000 is the amount of overhead that should be included in the cost of the self-constructed asset.