You have been awarded an insurance settlement of $211,400 that is payable one year from today. What is the minimum amount you should accept today in exchange for this settlement if you can earn 6.3 percent on your investments?

Answers

Answer 1

If you can make 6.3 percent on the investments, the minimum amount you should take today in exchange for this settlement is $198,871. (Approx).

What is the present value?

The current value of a future sum of money or stream of cash flows, assuming a certain rate of return, is known as present value (PV).

In the given case, there is a need to find out the present value of $211,400.

Computation:

According to the given information,

Present value = $211,400 × 1/(1 + r)n

Present value =$211,400× 1/1.063

Present value =$211,400× 0.940734

Present value =$198,871(Approx).

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Related Questions

determine if Pepsi and Coca Cola are a duopoly

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Answer:

The soft drink industry is a duopoly with differentiated products. Two firms, Coca-cola and Pepsi, compete through Cournot quantity-setting competition. Denote the quantity that Coca-cola and Pepsi produce by Q1 and Q2, respectively. The demand curve for the industry is P = 10 – Q1 – 2Q2.

Explanation:

A schedule is useful for _______. a. Visualizing all your commitments b. Solving workflow problems c. Maintaining your responsibilities d. All of the above Please select the best answer from the choices provided

Answers

A schedule is useful for visualizing all your commitments, solving workflow problems and maintaining your responsibilities.

What is the use of a schedule?

A schedule is something refer to the time that is planned in a proper way.

It is a sequential and organized time table that gives the idea about the available time, what is to be done, when is to be done and in what duration.

It saves the money and time as well.

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C. the "difference between growth and value shares involves a distinction based on book-to-market value. justify the low book-to-market ratios of growth shares versus high book-to-market ratios of value shares. (10 marks)

Answers

Answer:

Explanation:

Innovative Products reported net income of $217,000. Beginning and ending inventory balances were $46,500 and $48,500, respectively. Accounts Payable balances at the beginning and end of the year were $41,000 and $38,000, respectively. Assuming that all relevant information has been presented, the company would report net operating cash flows of:

Answers

The Net operating cash flow of Innovative Products company would be $218,000 after taking into consideration all the required events.

What do you mean by Operating cashflows?

Operating cash flow (OCF) is a degree of the quantity of cash generated via way of means of an agency's ordinary commercial enterprise operations.

As per the info:

[tex]\rm\,Net\, Operating \, Cashflows = Net\, Profit + Decrease\, in \, Current \, Liabilities - Increase\, in \, Current \, Assets \\\\Net\, Operating \, Cashflows = \$217,000 + (\$41,000 - \$38,000) - (\$48,500 - \$46,500)\\\\Net\, Operating \, Cashflows = \$217,000 + \$3,000 - \$2,000\\Net\, Operating \, Cashflows = \$218,000[/tex]

Hence, the Innovative Products company would report a net operating cash flow of $218,000.

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A soda manufacturer has two operating departments: mixing and bottling. mixing has 600 employees and bottling has 400 employees. office costs of $320,000 are allocated to operating departments based on the number of employees. the office costs allocated to the bottling department are:

Answers

Cost allocation is a technique of allocating the organization's costs among the various cost centers of the organization. Thus, the office costs allocated to the Bottling department are equal to $128,000.

What are allocation costs?

Cost allocation is a technique of supplying relief to shared carrier organization's cost facilities that offer a product or provider. In turn, the related cost is assigned to internal clients' price centers that devour the goods and services.

As per the given information,

Total office costs: $320,000

We have given total number of employees for mixing = 600

And total number of employees for bottling = 400

office costs = $320,000

So total number of employees is equal to 600 plus 400 is 1000 employees.

[tex]\rm\,Allocation \,Base\, For\, Mixing: \frac{600}{1,000} = 0.6 \\\\So allocated amount for mixing is 0.6 \times \$320,000 = \$192,000\\\\Allocation \,Base\, for\, Bottling\, = \dfrac{400}{1,000} = 0.4\\\\So allocated amount for bottling = 0.4 \times \$320,000= \$128,000[/tex]

Thus, the office costs allocated to the Bottling department is equal to $128,000.

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•Interpret image above using one word_ • Discuss your unique one word

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economy,
social construction it could also be used to say something regarding money

Grunwald elected to report its bonds at fair value. During the current year, the fair value of the bonds increased due to changes in the related credit risk. Grunwald should report the gain:

Answers

The way that Grunwald has to report the gain that is made by the fair value would be report it as part of OCI.

What is an OCI from bond?

This is a term that is used to refer to the balance that exists between the net income and also comprehensive income.

A very good example of this income is a bond that is yet to get to its maturity and so has not been redeemed.

Answers

Answer: Coercive power

As far as macroeconomic policy is concerned, and according to the textbook, what number best represents the threshold in the unemployment rate that separates a healthy from an unhealthy economy

Answers

An ideal real unemployment rate is 3.5% to 4.5% and this separates a healthy from an unhealthy economy.

What is an unemployment rate?

This refers to the percentage of the total number of people in the labor force who are unemployed.

Therefore, the ideal real unemployment rate is 3.5% to 4.5% and this separates a healthy from an unhealthy economy.

Answers

Answer:

its d to prevent unfair practices against consumers

Explanation:

How much of a property exemption is a totally disabled war veteran, making over $40,000 annually and living in California, entitled to

Answers

An amount of $196,262 will be received by the qualified disabled veterans as a property tax exemption on their first their primary residence if their total household income does not exceed $40,000.

What is a property exemption?

These means the property that creditors cannot seize and sell in order to satisfy debt.

The disabled veterans whose total household income does not exceed $40,000 are entitled to the amount of $196,262.

Answers

"Suppose a firm spends $10,000 to train its employees on a new, company-wide software program..." the knowledge gained through the training is considered the company asset knowledge. This is further explained below.

What is a software program?

Generally,software program is simply defined as to put it another way, software programs are typically described as a collection of instructions (or modules or processes, depending on the context) that enable a certain sort of computer function.

In conclusion, Knowledge obtained via training is considered an asset by the business if it costs $10,000 to teach its staff on a new, company-wide software application.

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The common impact of urbanization regardless of a country’s level of economic development is loss of agriculture to establishment of industries.

What is urbanization?

Urbanization leads to establishment of factories and industry.

It make the begining of development in many part of the nation.

Therefore, The common impact of urbanization regardless of a country’s level of economic development is loss of agriculture to establishment of industries.

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Kristi is a bookkeeper for Green Lawns Company. At the end of the month, she gathers all the data needed to prepare the financial statements on a form called a _____________.

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Green Lawns Company's bookkeeper is Kristi, At the end of each month, she compiles all of the data required to prepare the financial statements on a form known as a worksheet.

What is worksheet?

A sheet used as a guide in doing some work to make preliminary plans, auxiliary computations, comments or notes is called as the worksheet.

Kristi compiles all of the data needed to prepare the financial statements on a worksheet at the end of each month.

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Which one is the best choice. Please explain why. I’ll give extra points.

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Answer:

Explanation:

Surplus for Donovan: 10 - 4.50 = 5.50

Surplus for Rudy: 8 - 4.50 = 3.50

Surplus for Mike: 6 - 4.50 = 1.50

Surplus for Royce: 4 - 4.50 = -0.50

Sum of all surpluses: 5.50+3.50+1.50-0.50=10

Which nims management characteristic includes maintaining accurate?.

Answers

Answer:

Comprehensive Resource Management includes maintaining accurate and up-to-date inventories of personnel, equipment, teams, and supplies.

Carter tried to fix the economy through __________________ and __________________ . He created the __________________ and asked Americans to reduce their consumption because of their dependence on __________________ .

Answers

Carter tried to fix the economy through increased government spending and decreased taxes. He created the raised interest rates and asked Americans to reduce their consumption because of their dependence on the Department of energy and imported oil.

Who was Carter?

Jimmy Carter was an American president who worked as 39 president of America from the year 1977 to 1981. He mainly worked for the end of injustice and the development of the future.

He tries to improve the economy while increasing government spending to provide opportunities for employment and raising interest rates to earn high taxes for growth and developing infrastructure and reducing consumption.

Carter aided in the negotiation of the Camp David Accords, a historic peace agreement between Israel and Egypt in 1978.

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How are developed nations and developing nations similar? both have membership in multinational groups. both experience high death rates. both experience low infant mortality rates. both have high per capita income.

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Developed nations and developing nations are similar to each other as they have membership in multinational groups. Hence, Option A is the correct statement.

What are developed nations?

An evolved country—additionally known as an industrialized country—has a mature and complex economy, generally measured through the gross home product (GDP) and/or common profits in step with residents.

Developed nations have superior technological infrastructure and feature various commercial and carrier sectors.

Hence, Developed nations and developing nations are similar to each other as they have membership in multinational groups. Option A is the correct statement.

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Answer:

Both have membership in multinational groups.

Explanation:

Took the test on FLVS.

Pinnacle purchased $139,700 of fixed assets that are classified as five-year macrs property. the macrs rates are .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6, respectively. what will the accumulated depreciation be at the end of year 4 if the tax rate is 21 percent and no bonus depreciation is taken

Answers

The depreciation to be charged on fixed asset purchased by Pinnacle over five years will be $115559.84.

What is depreciation?

The reduction in value of an asset due to wear and tear during normal usage over passage of time is known as depreciation. For the given case, depreciation is to be calculated as,

[tex]\rm Depreciation= Actual\ Value\ x\ (Rates\ of\ Depreciation\ for\ Four \ years)\\\\\rm Depreciation= 139700\ x\ (0.2+0.32+0.192+0.1152)\\\\\rm Depreciation= \$115559.84[/tex]

Hence, the rate of depreciation to be accumulated by Pinnacle over such fixed asset is aforementioned.

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You have been hired as an assistant to the head network administrator in an ISP (Internet service provider). While setting up the network for one of your clients, he wants you to check whether sufficient security precautions have been taken to ensure none of the customer's switches becomes the ISP's root bridge. Which of the following will you use in this scenario to ensure that the appropriate security measures have been taken?
a) A BPDU guard
b) A root bridge
c) A root guard
d) A BPDU filter

Answers

"You have been hired as an assistant to the head network administrator in an ISP (Internet service provider)...." to ensure that the appropriate security measures have been taken you use a root guard. Option C. This is further explained below.

What is a root guard?

Generally, a root guard is simply defined as on a port-by-port basis, root guard is an STP characteristic that prevents a specified port from being the root of the network.

In conclusion, In order to guarantee that the proper security measures have been performed, you utilize a root guard as an assistant to the chief network administrator in an ISP.

Answers

In an equipment capital budgeting decision, recovering the original investment gives an idea that the investment has gained cash inflows to completely cover the cost of the equipment.

What do you mean by Capital budgeting?

The manner of creating funding selections in long-time assets is called as Capital budgeting. It is the manner of finding out whether or not or now no longer to spend money on a specific venture as all of the funding opportunities might not be rewarding.

Thus, The correct statement is the investment has gained cash inflows to completely cover the cost of the equipment.

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In order to buy most homes, you have to arrange an up front payment of a portion of the house value, called a ________. a. Mortgage b. Closing fee c. Down payment d. Utility cost Please select the best answer from the choices provided A

Answers

Answer:

C. Down payment

Explanation:

The down payment of a house is simply part of the price of the house that you pay up front. A down payment reduces the risk to the lender because it ensures that the ones buying the house can afford the mortgage.

I hope this helps! If you have any questions about what I said please leave them down in the comments!

how much tax is deducted from a paycheck in indiana

Answers

Answer:

Indiana has a flat tax rate, meaning you're taxed at the same 3.23% rate regardless of your income level or filing status. All 92 counties in the Hoosier State also charge local taxes

Explanation:

What would be an opportunity cost for the business if it chooses to open the
new branch in China?
O A. The business would be able to easily sell its products to many new
customers.
B. The business could not use the money it spends on the new
branch for something else.
C. The business would have to spend all its money making new
Chinese products.
D. The business would be able to increase the selling prices for most
of its products.
SUBMIT

Answers

Answer:

Explanation:

An opportunity cost for the business if it chooses to open the new branch in China is that the business would be able to easily sell its products to many new customers.

Answer:

Explanation:

I got it right on my test

Evaluating manager's performance on financial measures only has limitations. therefore, companies should consider ________
measures to help evaluate manager performance.

what is the asnwer

Answers

A company should consider the non-financial measures to evaluate the performance of the manager instead of financial measures.

What are financial and non-financial measures of evaluating the performance of the managers?

Financial measures are those which measures the performance in terms of money that includes Gross and net profit margin, working capital etc.

Non-financial measures are those which measures the performance other than money that include market share, customer satisfaction etc.

Non-financial measures are more effective than the financial measures.

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Burgers and More operates a chain of fast-food restaurants across the United States. The restaurants are franchised operations. Under the franchise agreement, restaurant owners have the right to use the Burgers and More trade name, financing arrangements for franchisees, and management training at the corporate headquarters as well as the right to use training videos for their employees. The Burgers and More franchise contracts contain the following separate performance obligations:a. intellectual property, financing, and training.
b. intellectual property.
c. intellectual property, training.
d. financing and training.

Answers

The Burgers and More franchise contracts contain the following separate performance obligations and intellectual property.

What is a restaurant?

A restaurant is a place where people pay for meals, eat there, sit and also relaxed for a while.

Restaurant sells different types of meals plus other refreshments.

Therefore, The Burgers and More franchise contracts contain the following separate performance obligations and intellectual property

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Fish and chips are complementary goods. what would shift the demand curve for chips to the left?

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Answer:

Vegans

Explanation:

Creating an online website what are good ideas to help me brainstorm

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A few ideas for the website are:

An easy-to-update CMSResponsive designHelpful navigationStrong brand identityContact informationSecurity features

Compared to the C corporation, the limited liability company is an attractive form of business ownership because a limited liability company ________.

Answers

A limited liability company(LLC) does not require the firm to hold annual meetings and it can avoid double taxation. Therefore, it is an attractive form of business ownership in comparison to C corporation.

Which is better LLC or C Corp?

LLCs are taken into consideration as pass-thru entities for the cause of US taxation; they do not record taxes of their personal right, however, have their earnings mentioned in the non-public earnings tax returns of their owners. C groups record their personal tax returns.

Thus, the correct fill-in-the-blank is a limited liability company that does not require the firm to hold annual meetings and it can avoid double taxation.

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Suppose that, in a competitive market without government regulations, the equilibrium price of donuts is $1.00 each. Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Statement Price Control Binding or Not
The government prohibits donut shops from selling donuts for more than $1.20 each. Due to new regulations, donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so. The government has instituted a legal minimum price of $0.80 each for donuts.

Answers

The table can be completed by

Donuts for $1.20 is a binding floor priceDonuts for $0.80 is a binding ceiling price.

What is a binding floor price?

This is a price that is known to be above the equilibrium price. Selling donuts for 1.20 is a binding floor price

what is a binding price ceiling?

This is the price that has been set below the equilibrium price by the government. The equilibrium price in the question is $1.00 hence:

The government has instituted a legal minimum price of $0.80 each for donuts is a binding ceiling.