sally borrowed $1000 from her friend monique two years ago. their arrangement required sally to repay $250 each year for the subsequent four years. Today with two paymewnts remaining on the loan, Sally offers to repay the loan with a single payment of $475. Assuming no change in interest rates throughout the entire time, should monique accept the signle $475 payment today, why or why not

Answers

Answer 1

Answer:

a

Explanation:

Here are the options to this question :

A. yes, 475 is more than the PV of the two remaining payments

B. More information is needed to decide

C. Monique is indifferent between the options, the PVs are equivalent

D. No, the PV of the remaining two payments is more than 475

We have to determine the present value of the remaining two payments and compare the options

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 0

Cash flow in year 2 = 0

Cash flow in year 3 = 250

Cash flow in year 4 = 250

I = 2%

PV = $466.54

$475  is greater than $466.54. Therefore, she should accept the single $475 payment

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

A customer calls in to inquire about your product. They're curious if it's really the right product for their business and they ask if you offer any products that cater to small businesses. What would you do?

1. "I can definitely assist you with finding the best product your business needs. To start, why don’t you tell me about a bit about your business."

2. "We absolutely can help you out! Did you happen to review our website for the packages we offer or maybe you already have a package in mind?"

3. “I'd suggest you try reviewing our packages on our website first. Then we can offer more assistance once you have a better understanding of what you think you need."

Answers

Answer:

I would use suggestions 3 so that the customer has a better understanding of the products

There would be the suggestion as related to product “I'd suggest you try reviewing our packages on our website first. Then we can offer more assistance once you have a better understanding of what you think you need.” Thus, the option (c) is correct.

What is product?

The term “product” refers to the item or object can be sold. The product always tangible. The product are manufactured with the help of machines. The product is based on durable and non-durable product. The product is delivered with multiple channels are one level, two level and three level depend on product.

A costumer is call to injury about product features, price, and quality and different question asked. The costumer is very curious about on related to the product and business.

The product company helper to assist the costumer to go to her business website and search the product details and features than choose the product. Then ask any doubt its better understand to costumer.

Therefore, option (c) is correct.

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which of the following is a tertiary ratio that drives profitability?

Review Later
EBIT / Sales
Net Profit / Sales
EBIT / Net Profit
SG&A Expense / Sales

Answers

The SG&A Expense/Sales is the tertiary ratio that drives profitability.

What is SG&A Expense/Sales?

This refers to the everyday operating expenses of running a business that are not included in the production of goods or delivery of services.

As the SG&A includes rent, salaries, advertising, marketing expenses etc., it is the tertiary ratio that drives profitability.

Therefore, E is correct.

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Discuss the importance of customer service

Answers

Customer service is mostly present in malls, airports, buildings etc. Customer service is to help the customer for their needs.

Moore Products uses the allowance method in estimating uncollectible accounts. On December 31, 2022, the balance in Accounts Receivable was $610,000. An aging analysis of the accounts receivable indicated that $29,600 in accounts are expected to be uncollectible.

Prepare the adjusting entry to record estimated bad debts expense using the percentage of receivables basis under each of the following independent assumptions:
(a)
Allowance for Doubtful Accounts has a credit balance of $4,100 before adjustment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answers

The adjusting entry to record estimated bad debts expense using the percentage of receivables basis is:

Bad Debt Expense Account dr........             $25,500          

      To Allowance for Doubtful Account                      $25,500

(Being the bad debt expense is recorded)

For recording this, we credit the allowance for doubtful debts, which decreased the value of the assets and debit the bad debt expenditure, which raised the expenses.

Additionally, since there is a credit balance, the account receivable is reduced accordingly.

The amount for bad debt expense Account = $29,600 - $4,100

                                                         = $25,500

Hence, The adjusting entry to record estimated bad debts expense using the percentage of receivables basis is:

Bad Debt Expense Account dr........             $25,500          

      To Allowance for Doubtful Account                      $25,500

(Being the bad debt expense is recorded)

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on october 1 a client pays a company the full 12000 balance of a year long contract. Using the accrual method what is the unearned revenue as of December 31

Answers

Based on the amount the client paid on October 1, the unearned revenue as at December 31 is $9,000.

How can the unearned revenue be found?

First, find the monthly revenue:

= 12,000 / 12

=$1,000

From October 1 to December 31 is 3 months so 3 months of revenue has been recognized.

Unearned revenue is:

= 12,000 - (3 x 1,000)

= $9,000

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A $298 petty cash fund has cash of $32 and receipts of $247. The journal entry to replenish the account would include credit to Petty Cash for $247. debit to Cash for $247. debit to Petty Cash for $266. credit to Cash for $266.

Answers

The journal entry to replenish the petty cash account is credit to Cash for $266.

How would petty cash be replenished?

The amount that needs to be replenished is:

= Petty cash fund - cash

= 298 - 32

= $266

This amount needs to be taken from the cash account which is why the cash account will be credited with $266.

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"Do what you do best" is most consistent with which target marketing strategy?
O Concentrated
O Differentiated
O Undifferentiated
O Aggregated
O Sales-oriented

Answers

Do what you do best" is most consistent with undifferentiated target marketing strategy.

What is marketing strategy?

This is when an organization or company devised means of promoting their products to the target audience.

Undifferentiated is when a marketer overlooks the market's segment distinctions and make use of a marketing plan designed to appeal to as many individuals as possible.

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Which person is living within their means?
A. Cara earns $1000 a month and spends $1200 by putting some
expenses on her credit card.
OB. Bill earns a high salary but has trouble making his car payment on
time due to his expensive hobbies.
OC. Ella maxed out all three of her credit cards but pays the minimum
balance each month.
D. Dmitri earns $1000 a month and spends $800 on rent, groceries,
and other expenses.

Answers

Answer: D

Explanation: I just took the test

Dimitri earns $1000 a month and spends $800 on rent, groceries and other expenses. Therefore Dimitri is living within their means. The correct option is d.

How successfully can a person live within their means?

To live within our means, it can be understood that what we spend each month is less than or at least equal to the amount of money we bring in each month. For many people, it’s a lot easier said than done. If we want to live within our means, we have to know what our means are. Simply knowing our annual salary or hourly rate isn’t enough to help us live below our means. We need to know the net income that appears on our paychecks and the amount we have to spend.

We also need to know how often we get paid so we can better match the timing of our income with our bills. Since most of our bills are paid monthly, we’ll need to know how much we get paid every month.

We must multiply weekly paychecks by four, and bi-weekly paychecks by two, to get our monthly pay.

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20 pts
The original Greek Olympic Games are often considered the beginning of sports and entertainment marketing as we know it today.
OA. True
OB. False

Answers

This is true that The original Greek Olympic Games are often considered the beginning of sports and entertainment marketing as we know it today.

The contemporary Olympic Games, sometimes known as the Olympics, are the most prestigious international athletic occasions that include summer and winter sports competitions in which thousands of competitors from all over the world take part in a range of activities.

Zeus, the father of the Greek gods and goddesses, was the main focus of the ancient celebration that included the Olympic Games.

Soccer is the most popular sport in the world according to other metrics, and it's also one of the most popular Summer Olympic sports, though it has some competition from swimming and athletics, whose popularity peaks during the Olympics.

The ancient Olympic Games were originally a one-day competition until they were expanded to a three-day competition in 684 BC. The Games were once more expanded to take place over five days in the fifth century B.C. Running, long jumping, shot throw, javelin, boxing, pankration, and equestrian competitions were all part of the ancient Games.

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Providing intellectual property rights can result in which of the following? Select all that apply.

giving access to the property to everyone
the opportunity for an inventor to profit on her idea
a marketing giant taking advantage of an inventor
piracy and lawsuits
a singer getting paid for coming up with a hit song

Answers

Providing intellectual property rights can result in in-

the opportunity for an investor to profit from her idea.piracy and lawsuits.

What are intellectual property rights?

Intellectual property rights provide an authority for individuals to restrict other people to copy or imitate the product or process followed in any invention for a certain period of time.

If a Violation of these rights has been noticed the guilty party has to bear the fines and imposed punishment on them for breach of Contract. One should have been required to take permission from the inventor in order to imitate.

This gives an inventor the chance to make money off of her invention since when permission to copy is requested, they can charge a fee. Additionally, it aids lawsuits and piracy.

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What is the journal entry for declaring $9000 dividend to be paid next month

Answers

The journal entry for declaring a $9,000 dividend to be paid in the coming month is:

Date                   Account Title                                      Debit          Credit

XX-XX-XXXX    Retained earnings                           $9,000

                          Dividends Payable                                               $9,000

How is dividend declared recorded?

The Retained earnings account will be debited to show that the account is decreasing. This is because dividends are taken from the retained earnings of a company.

The dividends payable account will be credited with $9,000 to show that the company now owes its shareholders $9,000. This will then be debited next month to show payment.

In conclusion, retained earnings are debited, and dividends payable are credited.

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Outline the Operational Risk events that JP Morgan Chase & Co has experienced over the last 5 years

Answers

Some operational risk events faced by JP Morgan and other firm are:

Internal fraudExternal fraudDamage to physical assetsBusiness disruptionSystems failures

What is an operational risk event?

This refers to an incident or experience that has caused or that has a potential to cause some material loss to the firm either directly or indirectly with other incidents.

Some example of an operational risk involves some employee errors, criminal activity like fraud, physical events etc.

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Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below.

Year 1 2 3 4 5
FCF -$22.77 $37.1 $43.5 $53 $56.2
The weighted average cost of capital is 12%, and the FCFs are expected to continue growing at a 3% rate after Year 5. The firm has $26 million of market-value debt, but it has no preferred stock or any other outstanding claims. There are 20 million shares outstanding. Also, the firm has zero non-operating assets. What is the value of the stock price today (Year 0)? Round your answer to the nearest cent. Do not round intermediate calculations.
$
per share

According to the valuation models developed in this chapter, the value that an investor assigns to a share of stock is dependent on the length of time the investor plans to hold the stock.

The statement above is
-Select-
.

Conclusions

Analysts use both the discounted dividend model and the corporate valuation model when valuing mature, dividend-paying firms; and they generally use the corporate model when valuing divisions and firms that do not pay dividends. In principle, we should find the same intrinsic value using either model, but differences are often observed.

Even if a company is paying steady dividends, much can be learned from the corporate model; so analysts today use it for all types of valuations. The process of projecting future financial statements can reveal a great deal about a company's operations and financing needs. Also, such an analysis can provide insights into actions that might be taken to increase the company's value; and for this reason, it is integral to the planning and forecasting process.

Answers

The stock price is mathematically given as

P=$57.64

What is the stock price?

Generally, the equation for is Value after year  mathematically given as

[tex]V=\frac{(FCF for year 5*Growth rate)}{(WACC-Growth rate)}\\\\V = \frac{(55.4*1.05)}{(0.09-0.05)}[/tex]

V= $1454.25

Hence, the current value is mathematically given as

I=Discounting factor equal to the future cash flows multiplied by their present value

[tex]I=\frac{-22.76}{1.09} + \frac{38.8}{1.09^2}+ \frac{43.4}{1.09^3}+\frac{52.3}{1.09^4}+\frac{55.4}{1.09^5}+\frac{1454.25}{1.09^5}[/tex]

I=$1063.508769

current value for ordinary stock

I'=$1037.508769million

In conclusion, the stock price is

P=(1037.508769/18)

P=$57.64

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outline and clarify the three types of safety controls with examples and explain when hierarchical preferences of safety control apply?​

Answers

Answer:

define five runs of hierarchy of contains elimination substitution engineering controls editing status control and personal protective equipment

On January 1 of this year, Nowell Company issued bonds with a face value of $140,000 and a coupon rate of 7.5 percent. The bonds mature in ten years and pay interest semiannually every June 30 and December 31. When the bonds were sold, the annual market rate of interest was 7.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

What amount of cash is owed to investors on June 30 and December 31 of this year?

Answers

Based on the face value of the bonds and the coupon rate, the amount owed to investors by Nowell Company is:

June 30 = $5,250December 31 = $5,250

How much is owed to investors?

This can be found as:

= (Coupon rate x Face value) / 2 semi annual periods

Solving gives:

= (7.5% x 140,000) / 2

= $5,250

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how do you find the total fixed cost using the table

Answers

Answer:

Total cost (TC) = Total variable cost (TVC) + Total fixed cost (TFC)

Therefore,

Total fixed cost = Total cost - Total variable cost

hope am helpful

Answer: Total fixed cost= Fixed cost- total variable cost

Explanation: you should add the fixed cost and the variable cost then the answer you get by adding the fixed cost and the variable cost is the total fixed cost.

use the below way to find the Total fixed cost;

Fixed cost= Fixed cost (TC) + Variable cost (TVC)

then to get the total fixed cost;

Total fixed cost= Fixed cost- total variable cost

why shall professional groups shall not be allowed to assign their own professional codes of conduct and police themselves from within

Answers

Professional groups should not be allowed to assign their own codes of professional conduct because the organizational ethics set a standard of job compliance.

What is the relevance of the professional code of ethics?

These are the rules and policies created to direct the behavior of employees, generating compliance, positive practices at work and standardization of actions, creating a culture favorable to development, cooperation and motivation.

Therefore, individual ethics can be related to individual values ​​and not correspond to organizational values, not guaranteeing the equity of employees.

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Firms will generally make-to-order when

Answers

Firms will generally make-to-order when the demand for goods is not stable.

What is Make to order?

Make to order (MTO) is a production process that involves a customer ordering a specific products which is usually different from the general products.

The products may be customized and its usually done when a company has less demand or work.

Therefore, Firms will generally make-to-order when the demand for goods is not stable.

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Imagine you are a manager for a local restaurant. One of your customers asks to speak with
you about their server and his "disappointing service." The customer claims that they have
been sitting at their table for 25 minutes before their server came to greet them. Using the
skills you learned in this unit, describe the steps would you take to resolve this situation so
the customer leaves satisfied.

Answers

As a proficient customer service professional, the first step to take in such a situation is to first apologize in the kindest way possible to the customer. It would give the customer comfort to know that the server is corrected immediately while taking charge of the clients order.

What procedure is outlined above?

The above procedure is known as conflict resolution under customer care service.

One additional step maybe to keep the costumer company and ensure that they are happy before they leave.

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Citrus Corporation is a calendar year S corporation with the following
current year information:
Operating loss
Liabilities:
$(2,160,000)
Notes payable, Big Apple Bank
360,000
Notes payable, Grapefruit (individual) 360,000
On January 1, Orange (an individual) bought 50% of Citrus Corporation
stock for $540,000. How much of the operating loss may Orange deduct
currently? Assume the excess business loss limitation does not apply.

Answers

The amount of the operating loss may Orange deduct currently will be $108000.

How to illustrate the information?

It should be noted that the operating loss of a company occurs when the company's operating expenses are more than the gross profit.

The following are given in the information:

Operating loss $(2,160,000)

Notes payable, Big Apple Bank 360,000

Notes payable, Grapefruit (individual) 360,000

Also, it was stated that Orange (an individual) bought 50% of Citrus Corporation stock for $540,000.

Therefore, the amount in this scenario will be:

= 50% × $2160000

= $108000

In conclusion, the amount of the operating loss may Orange deduct currently will be $108000.

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Suppose that the federal budget is balanced when GDP is at potential GDP. If equilibrium GDP falls below potential, please explain how and why government transfer payments would change; how and why tax receipts would change; how and why the budget would change.

Answers

The federal budget is the difference between the income of the government and its expenditure as illustrated in the GDP.

How to explain the information?

The income of the government is tax revenue and when expenditure is more than the income, the budget is said to be in deficit. Potential GDP is the maximum GDP that an economy is able to produce with the given level of resources in the long run. In times of recession, the actual GDP is less than the potential GDP, which means the output produced is less than the capability of the economy.

Inn such periods, GDP is low, unemployment is very high and aggregate demand is also very low. When the economy is in recession, the income of the people falls and thus, the tax they pay out of their incomes also falls. Therefore, the tax receipts fall due to a fall in income.

On the other hand, in recessions, the government uses expansionary fiscal policy which directly injects money by either increasing government spending or reducing the tax rate. Therefore, when the tax rate falls, the tax revenue or tax receipts fall. The government spends money on the public to increase social welfare.

The budget of the government is the difference between tax receipts and transfer payments. When the tax receipts fall and transfer payments rise. Thus, the budget of the government falls and the federal budget is said to be in deficit.

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The return on investment earned by atkins construction company for four successive years was 30% 20% -40% and 200%. What is the geometric mean rate of return on investment?

Answers

The geometric mean rate of return on investment is 29.45%

What is arithmetic mean rate of return?

Arithmetic rate of return is the sum of all returns divided by the number of periods for which the returns were indicated.

Arithmetic rate of return=sum of returns/number of returns

number of returns in this case is 4 since the returns were for 4 years

arithmetic rate of return=(30%+20%-40%+200%)/4

arithmetic rate of return=52.50%

What is geometric mean rate of return ?

It is the return computed using a different approach as shown by the formula below:

geometric mean rate of return= ((1 + R1) × (1 + R2) × ... × (1 +Rn))(1/n) - 1

R1=year 1 return=30%

R2=year 2 return=20%

R3=year 3 return=-40%

R4=year 4 return=200%

n=4(the returns for 4 years)

geometric mean rate of return=((1+30%)*(1+20%)*(1-40%)*(1+200%))^(1/4)-1

Remember the return in year 3 is negative 40%, using a positive return would lead a wrong conclusion

geometric mean rate of return=1.2945-1

geometric mean rate of return=29.45%

The geometric mean rate of return on investment is 29.45%

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Describe how the over or under application of overhead should be corrected

Answers

Over or under application of overhead should be corrected by  closing it to Retained Earnings the Cost of goods sold as well  Finished goods Work in process.

What is Retained earnings?

Retained earnings serves as the  cumulative net earnings of a company  after the accounting for dividends.

This can be used to correct the Over or under application of overhead.

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What is a key feature of Mixed Reality?

Answers

Answer:

different media?hdhdbejdbdb

Explanation:

yeshehssiebeiidj

Which of the following is true concerning economic growth?
Group of answer choices

A. Nations achieve high rates of economic growth primarily because of their natural resource endowments.

B. Human and physical capital investments are largely irrelevant to economic growth.

C. Poor nations grow slowly because they do not have access to modern technology

D. An institutional environment that provides a strong incentive for people to engage in productive activities will promote economic growth.

Answers

The statement that is true is An institutional environment that provides a strong incentive for people to engage in productive activities will promote economic growth. Option D is correct

What is Economic growth?

Economic growth is used when a country performs better than the previous years in terms of it economy.

The country may have an increase the in quantity if goods supplied ands demanded that year compare to other years thereby increasing the money in.

Therefore, the statement that is true is An institutional environment that provides a strong incentive for people to engage in productive activities will promote economic growth. Option D is correct

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Part 1: Describe the following in 175 words: • 2 of the main risks of entrepreneurship and small business ownership ​

Answers

1.Bankruptcy

It is a process a business goes through in federal court. It is designed to help your business eliminate or repay its debt under the guidance and protection of the bankruptcy court.

2. Financial risk

it is the possibility of losing money on an investment or business venture. Some more common and distinct financial risks include credit risk, liquidity risk, and operational risk. Financial risk is a type of danger that can result in the loss of capital to interested parties.

3. Founder risk

it considers who the founders of the company are, if they get along, and how they will work for the company.

4.Product risk

it takes into account the engineers creating new product for the business and how they will recruit other product engineers.

estimates that its office employees will earn $50,000 next year and its factory employees will earn $260,000. The firm pays the following rates for workers’ compensation insurance: $0.42 per $100 of wages for the office employees and $4.60 per $100 of wages for the factory employees. Compute the estimated premiums for the office and factory employees.

Answers

If the business is doing good then it would be bringing in 20000 dollars of profit as they keep bringing in money and the wages are 4.55

Compare and contrast the three modes of communication; monologic, dialogic and resistant background conversations.

Answers

The difference between monological and dialogical communication lies in the participation of the people involved in the communication.

What is the difference between the three types of communication?

The difference between these three modes of communication is that in monologic one person listens to what another person is saying, in dialogic both participate actively speaking and listening, and in resistant background conversations the participants are completely passive and only hear what others say. .

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4. You are making a punch for an upcoming party. The recipe calls for 2½ parts ginger ale to 4/5
parts grenadine to 1% parts vodka. If your punch bowl can hold 8.5 litres, how much (in litres)
each ingredient is needed? Round the answers to two decimals as needed.

Answers

Based on the ingredients and drinks needed to make a punch bowl, the quantity of each ingredient that is needed is:

4.55 liters of ginger ale 1.45 liters of grenadine 2.5 liters of vodka

How much of each ingredient is needed?

Assuming that the amounts of each ingredient is x, the formula would be:

8.5 = 2.5x + 0.8x + 1.375x

Solving gives:

4.675x = 8.5

x = 8.5 / 4.675

=  1.818181

Using this value of x, we can then find the quantity of vodka needed to be 2.5 liters.

Grenadine would need 1.45 liters and Ginger Ale would need the highest amount of 4.55 liters.

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I need help.
Question 3 of 24
FICA deductions are an example of a
A. savings
B. voluntary
C. health benefit
D. mandatory
deduction.

Answers

Answer:

d ) mandatory deduction

Other Questions
A car accelerates uniformly from rest andreaches a speed of 17.9 m/s in 9.6 s. Thediameter of a tire is 38 cm.Find the number of revolutions the tiremakes during this motion, assuming no slip-ping.Answer in units of rev. Question 2Which of the following statements is correct based on the number line below?The number line showing numbers from -8 to 8 in increments of 2, has point P at 0, and point Q is at 8.A 68 is to the right of Point Q because it is less than 8.B 68 is between points P and Q because it is less than 0 and greater than 8.C 68 is between points P and Q because it is greater than 0 and less than 8.D 68 is to the right of Point Q because it is greater than 8. What type of inheritance is shown by the genes that control sickle cell anemia? Explain your response. Stories tell so much about the time period, experience, and environment of an author and/or characters. What stereotypes are perpetuated in the story through color symbolism? Does S.E. Hinton create Ponyboys character to have biases? Lets annotate Ponyboys descriptions of characters to find out.Characters: Ponyboy, Darry, Soda pop, Two-Bit, Dally, and johnny ----(all these characters are from the outsiders) in 1988, I paid$8450 brand new car, but boy, did that car depreciate. by 1993, it was only worth $2200write an equation that will model this situation. round your rate the nearest 4 places Which 802.11 standard works best in this situation? Informed consent generally implies that the person: At a given instant, the gear racks have the velocities and accelerations shown.Determine the acceleration of point A.Enter the x and y components of the accelerationDetermine the acceleration of point B.Enter the x and y components of the acceleration Hurry - Please Help = 2 questions. Which recent local, national or international current event (within the past year) has captured your attention and WHY? Please be specific and include: 1- when and where did you hear of this specific current event - 2- what specific details of this event has maintained your interest - 3- how has this event impacted you personally and 4- has the outcome of this event influenced you to make a change What are the problems with rapid economic development? help pls im so confused !! A copper wire is 20 m long on a winter day when the temperature is ?12?C. which statement describes the central idea of the passage What is the value of x?. round to the nearest tenth, if necessary. responses x = 6 x, = 6 x = 6.3 x, = 6.3 x = 7 x, = 7 x = 9.2 Theresa is an article writer who is paid 3 cents per word that she writes. If it takes her 2 hours to write a 3,000-word article, what is her rate of payment dollars per hour? 42 POINTS!!! Better Cable Company must provide service to a customer whose house is located 2 miles from the main highway. The nearest connection box for the cable is located 5 miles down the highway from the customer's driveway. The installation cost is $14/mile for any cable that is laid from the house to the highway. (The cable must be laid along the driveway to the house or across the field). The cost is $10/mile when the cable is laid along the highway. Determine where the cable should be laid so that the installation cost is as low as possible.Please show work! What is the slope of the following equation? y = 1/2x 3 HURRRYYY Find the measure of angle x in degrees. Round to two decimals places as necessary!! HELPP PLS Starlite industries will need $2. 2 million 4. 5 years from now to replace some equipment. Currently, the firm has some extra cash and would like to establish a savings account for this purpose. The account pays 3. 6 percent interest, compounded annually. How much money must the company deposit today to fully fund the equipment purchase?.