Amber works as an insurance claims agent in charge of assisting policyholders when an accident has occurred. What task might Amber perform as part of her job?

A. buying and selling stocks for her clients
B. running an analysis of a small business's spendings
C. recording items damaged in a house fire

Answers

Answer 1

Answer:

the answer would be B

Explanation:

please tell me if im wrong or right

Answer 2

Answer:

B

Explanation:


Related Questions

Question 5 of 10
The federal government creates the federal budget each year in order to:
A. remove government regulations about mandatory spending.
B. reduce the national debt as much as possible.
c. decide how much money the government will spend.
D. guarantee that the government will have a surplus.
SUBMIT

Answers

Answer: c. decide how much money the government will spend.

Explanation:

A budget simply refers to the estimation that's done with regards to the revenue that will be made and the expenses that'll be incurred for a particular time period.

The federal government creates the federal budget each year in order to decide how much money the government will spend.

The budget isn't created to remove government regulations about mandatory spending or reduce the national debt as much as possible.

Answer:

decide how much money the government will spend.

Explanation:

it been confirm that is the answer

where can a master admin accountant user view the apps connected to a client's quickbook online accountant

Answers

Answer:

The answer is below.

Explanation:

A Master Admin accountant is responsible for creating the company file in QuickBooks Online and can provide approval and access to other users.

However, a Master Admin Accountant User can view the apps connected to a client’s QuickBooks Online account from within QuickBooks Online Accountant by doing the following:

1. Go to Settings

2. Click the Manage Users option.

3. Click the Accounting firms option.

4. Under the Company section, Click View Apps.

The price of a gallon of milk falls. Which of the following is a possible cause?
a discovery that milk cause diabetes
a drought that reduces supplies of feed grains fed to cows that produce milk
an increase in the income of the average household, with milk being a normal good
a decrease in the price of oatmeal, a complement to milk

Answers

You answer would be… A discovery that milk causes diabetes.

When there is a fall in the price of the gallon of milk, the most possible cause among all the given causes is that “a discovery that milk causes diabetes”. Hence, Option A is correct.

What is the fall in the price?

Both terms have the same meaning: it is a period in which the price of a commodity or any product falls in comparison to other products on the market, which can be its substitute or complement, or it can also be a competitive product.

There were reasons why the price of any product fell. Sometimes, the supply of any product in the market is in abundance. In that case, the price of any product will fall.

When it comes to the price fall of a gallon of milk, it is because people who consume milk find that the main reason or one of the reasons for diabetes is milk.

Thus, Option A is correct.

Learn more about price fall from here:

https://brainly.com/question/13864080

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Weighted Average Method, Separate Materials Cost
Janbo Company produces a variety of stationery products. One product, sealing wax sticks, passes through two processes: blending and molding. The weighted average method is used to account for the costs of production. After blending, the resulting product is sent to the molding department, where it is poured into molds and cooled. The following information relates to the blending process for August:
a. Work in Process on August 1, had 30,000 pounds, 20% complete. Costs associated with partially completed units were:
Materials $220,000
Direct labor 30,000
Overhead applied 20,000
b. Work in Process on August 31, had 50,000 pounds, 40% complete.
c. Units completed and transferred out totaled 480,000 pounds. Costs added during the month were (all inputs are added uniformly):
Materials $5,800,000
Direct labor 4,250,000
Overhead applied 1,292,500
Required:
1a. Prepare a physical flow schedule.
Janbo Company
Physical Flow Schedule
Units to account for:
Units in beginning work in process
Units started
Total units to account for
Units accounted for:
Units completed
From ending work in process
Total units accounted for
1b. Prepare an equivalent unit schedule.
Janbo Company
Schedule of equivalent units
Weighted Average Method
Units completed
Units in ending work in process
Total equivalent units
2. Calculate the unit cost. Round unit cost value to three decimal places.
$
3. Compute the cost of EWIP and the cost of goods transferred out.
Ending work in process $
Goods transferred out $
4. Prepare a cost reconciliation.
Janbo Company
Cost Reconciliation
Costs to account for:
Beginning WIP $
August costs
Total to account for $
Costs accounted for:
Transferred out $
Ending WIP
Total costs accounted for
$
5. Suppose that the materials added uniformly in blending are paraffin and pigment and that the manager of the company wants to know how much each of these materials costs per equivalent unit produced. The costs of the materials in BWIP are as follows:
Paraffin $120,000
Pigment 100,000
The costs of the materials added during the month are also given:
Paraffin $3,250,000
Pigment 2,550,000
Prepare an equivalent unit schedule with cost categories for each material.
Paraffin Pigment
Units completed
Units in ending WIP
Total equivalent units
Unit cost computation:
Costs in BWIP $ $
Costs added
Total costs $ $
Calculate the cost per unit for each type of material. Round your answers to the nearest cent.
Unit paraffin cost $per unit
Unit pigment cost $per unit


Answers

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Does life remind you of a roller coaster? can you prepare for these unexpected twists and turns ?
if so how ​

Answers

While life can be quite like a roller coaster, this isn’t always a bad thing. Sure, many moments are full of fear, but many others are filled with excitement. There are ways to be prepared, for example expecting the unexpected, but we can never truly be sure what is to happen next. When it comes to roller coasters, you know what’s going to happen before you get on. You saw the roller coaster from the ground. When it comes to life, you can only look at the lives of those around you to predict what might happen next. Each life is different.
In short, life is like a roller coaster in someways. We can study dozens and dozens of other lives and still not be truly sure what might happen next. We can only prepare ourselves by training our brains to have a positive outlook on even the worst of times.

Answer:

The person above is correct.

Explanation:

Give me a good example of operation and management please.

Answers

Answer:

Answersendiri goblob is a great place to work for a well and very friendly and friendly and welcoming hotel you are welcome to join us and join us in the evening and join us in the following luxury hotels in North Wales . Because he can't afford to stay there for a few days and we are away for a few weeks and we have booked for another holiday in the next few months we will be staying at the hotel

A company share was exchanged at 36 pence per share on the stock exchange on the
6
th Oct. 2014. 25% of the value was wiped out from the share in the next day trading
(7th Oct.2014)
What is the new share price?

Answers

Answer: 27 pence

Explanation:

From the question, we are given the information that a company share was exchanged at 36 pence per share on the stock exchange on the 6th Oct. 2014 and that 25% of the value was wiped out from the share in the next day trading which was 7th Oct.2014.

The new share price will be gotten by deducting 25% of 36 pence from the former value which is 36 pence. This will be:

= 36p - (25% × 36p)

= 36p - (0.25 × 36p)

= 36p - 9p

= 27p

The new share price is 27 pence.

Tony Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 4 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 4 years, by conducting some research online, Tony has developed the following estimates.

Engine Overhaul Estimated Cash Outflow Probability Assessment
$330 10%
460 30%
750 50%
950 10%

Required:
How much should Keith Bowie deposit today in an account earning 6%, compounded annually, so that he will have enough money on hand in 6 years to pay for the overhaul?

Answers

Answer:

$507.73

Explanation:

first we need to calculate the expected cost of overhauling the engine in 4 years:

$330 x 10% = $33

$460 x 30% = $138

$750 x 50% = $375

$950 x 10% = $95

Expected cost = $641

now we must find the present value = $641 / (1 + 6%)⁴ = $507.73

what is a tax bracket?​

Answers

Answer:

its like different groups if you make more money your in a higher tax bracket but if you make less money your in a lower tax bracket.

Explanation:

Tom has brought $150,000 from his pension to a new job where his employer will match
401(k) contributions dollar for dollar. Each year he contributes $3,000. After seven years,
how much money would Tom have in his 401(k)? Show your calculations.

Answers

Explanation:

the answer :171,000

the equation that you need ..is:150,000+3,000(x)

What is opportunity cost?
The tax that is paid on income
The fees that are paid for education
the value of an alternative you give up
the interest paid on a long-term investment

Answers

The answer would be B

Selling, with criminal negligence, alcoholic beverages to a minor is a:
Class A misdemeanor
Class B misdemeanor
Class C misdemeanor
Class A felony

Answers

Class a felony it’s class a for sure
Class A misdemeanor

The United States imports a lot of cars, despite having its own auto industry. Each of the following statements are arguments some people could make for restricting imports of cars into the United States. For each statement, identify the threat to the U.S. industry that the argument is trying to counter, and identify the opportunities that would be given up if the argument wins.

a. "Foreign manufacturers are offloading cars made with cheap foreign labor operating in unsafe and unhealthy factories. We must pass a law to prevent this exploitation."
b. "We need to foster the innovation of small car companies like Tesla that can truly change the auto industry. Allowing foreign electric vehicle manufacturers to sell cars in the U.S. will squander any chance of creating those car domestically."
c. "You shouldn't buy a car from Nissan or BMW! You're putting people here out of a job."

Answers

Solution :

a). An Anti dumping laws will prevent any unfair competition.

The foreign companies uses the method of of dumping for selling cars in the country. So US should impose anti - dumping law to prevent this unfair competition in its market. Doing this, the price of the foreign cars will increase and it will help reduce the demand of foreign cars in the US.

b). Protection can help the infant industries to develop.

To prevent the foreign companies from selling their hybrid electric cars in the US at a low price, US should impose high tax on these foreign electric vehicles. Therefore, protection can help the infant industries to develop and it will encourage the production as well as the distribution of the small scale industries in the market.

c). Foreign competition can lead to many job losses.

When an economy is consuming a lot of foreign goods, it will be a tough competition for the domestic manufacturers. The products of the domestic manufacturers will be less demanding and this lead to low production which will affect the manufacturer and therefore, it will lead to losses of jobs and massive unemployment.

What is the name of a person or business that is a parial owner of a company.?

Answers

Answer:

Shareholder

Explanation:

A person or business that’s is a partial owner of a company

3 different approaches of growth

Answers

Market penetration. The aim of this strategy is to increase sales of existing products or services on existing markets, and thus to increase your market share. ...
Market development. ...
Product development. ...
Diversification.

Willco Inc. manufactures electronic parts. They are analyzing their monthly maintenance costs to determine the best way to budget these costs in the future. They have collected the following data for the last six months.
Month Machine hours Maintenance cost
January 61500 125,000
February 82,000 15,1500
March 76000 132,400
APril 75400 40500
May 86300 151000
June 71750 122600
Using the high-low method and the Willco data, calculate the variable maintenance cost per machine hour (round to three decimal places).
a. $0.913/hr.
b. $1.048/hr.
c. $1.069/hr.
d. $1.848/hr.
e. $1.293/hr.

Answers

Answer:

Variable cost per unit= $1.048

Explanation:

Giving the following information:

Highest activity cost= $151,000

Highest activity units= 86,300

Lowest activity cost= $125,000

Lowest activity units= 61,500

To calculate the variable cost under the high-low method, we need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit=  (151,000 - 125,000) / (86,300 - 61,500)

Variable cost per unit= $1.048

You have the following information for Waterway Industries for the month ended October 31, 2022. Waterway uses a periodic method for inventory.Date Description Units Unit Cost or Selling PriceOct. 1 Beginning inventory 70 $26Oct. 9 Purchase 125 28Oct. 11 Sale 95 40Oct. 17 Purchase 95 29Oct. 22 Sale 70 45Oct. 25 Purchase 80 31Oct. 29 Sale 105 45A) Calculate the weighted-average cost. (Round answer to 3 decimal places, e.g. 5.125.)Weighted-average cost per unit______________B) Calculate ending inventory, cost of goods sold, gross profit under each of the following methods.(1) LIFO.(2) FIFO.(3) Average-cost. (Round answers to 0 decimal place, e.g. 125.)

Answers

Answer:

Waterway Industries

A) The weighted-average cost is $28.527

B) Ending Inventory, cost of goods sold, gross profit:

                                     (1) LIFO          (2) FIFO          (3) Average-cost

Ending Inventory:          $2,660           $3,060               $2,853

Cost of goods sold:      $7,895            $7,495               $7,702

Gross profit:                  $3,780            $4,180               $3,973

Explanation:

a) Data and Calculations:

Date        Description              Units   Unit Cost Selling Price Total

Oct. 1      Beginning inventory   70        $26                            $1,820

Oct. 9     Purchase                   125          28                              3,500

Oct. 11     Sale                           (95)                         40                         $3,800

Oct. 17    Purchase                    95          29                             2,755

Oct. 22   Sale                           (70)                         45                            3,150

Oct. 25   Purchase                   80           31                             2,480

Oct. 29   Sale                         (105)                         45                           4,725

Oct. 31   Ending inventory      100    

Total: Goods available           370                                       $10,555

         Goods sold                  270                                                        $11,675

Weighted-average cost = Cost of goods available/Units available

= $10,555/370 = $28.527 per unit

Periodic method:

LIFO:

Ending inventory:

Oct. 1      Beginning inventory   70        $26  $1,820

Oct. 9     Purchase                     30          28       840

Total Ending inventory =          100               $2,660

Cost of goods sold = Cost of goods available - Ending inventory

= $10,555 - $2,660 = $7,895

Sales Revenue         $11,675

Cost of goods sold     7,895

Gross profit               $3,780

FIFO:

Ending inventory:

Oct. 17    Purchase                    20          29       $580

Oct. 25   Purchase                   80           31       2,480

Total Ending inventory =        100                   $3,060

Cost of goods sold = Cost of goods available - Ending inventory

= $10,555 - $3,060 = $7,495

Sales Revenue         $11,675

Cost of goods sold     7,495

Gross profit               $4,180

Average-cost:

Ending Inventory = $2,853 ($28.527 * 100)

Cost of goods sold = Cost of goods available - Ending inventory

= $10,555 - $2,853 = $7,702

Sales Revenue         $11,675

Cost of goods sold     7,702

Gross profit               $3,973

why do we have a graduated income tax?​

Answers

Answer:

Progressive taxes are imposed in an attempt to reduce the tax incidence of people with a lower ability to pay, as such taxes shift the incidence increasingly to those with a higher ability-to-pay.

Explanation:

Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ5 at a price of $3.90 each. The new customer is geographically separated from the company's other customers, and existing sales would not be affected. Harrison normally produces 75,000 units of IJ5 per year but only plans to produce and sell 60,000 in the coming year. The normal sales price is $12 per unit. Unit cost information for the normal level of activity is as follows:
Fixed overhead will not be affected by whether or not the special order is accepted.
Direct Materials $1.75
Direct Labor 2.50
Variable Overhead 1.50
Fixed Overhead 3.25
Total $9.00
1. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)?
2. By how much will operating income increase or decrease if the order is accepted?

Answers

Answer:

For the special order the company will not incur any additional fixed cost as the special order is within the normal range of production.

Sales ( 10000 * 5 ) 50000

(-) Direct materials ( 10000 * 1.75 ) 17500

(-) Direct labor ( 10000 * 2.50 ) 25000

(-) Variable overhead ( 10000 * 1.50 ) 15000

Income / (loss) (7500)

Required 1 :

Answer : Reject

Required 2 :

Answer : Decrease by 7500

Pharoah Corporation had the following activities in 2020.
1. Sale of land $174,000 4. Purchase of equipment $426,000
2. Purchase of inventory $915,000 5. Issuance of common stock $345,000
3. Purchase of treasury stock $65,000 6. Purchase of available-for-sale debt securities $63,000
Compute the amount Pharoah should report as net cash provided (used) by investing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash select an option by investing activities $enter a dollar amount

Answers

Answer:

-$315,000

Explanation:

Computation for the amount that Pharoah should report as net cash provided (used) by investing activities in its 2020 statement of cash flows

Sale of land $174,000

Less Purchase of equipment ($426,000)

Less Purchase of available-for-sale debt securities ($63,000)

Net cash provided (used) by investing activities -$315,000

Therefore the amount that Pharoah should report as net cash provided (used) by investing activities in its 2020 statement of cash flows will be -$315,000

Tanner-UNF Corporation acquired as an investment $300 million of 6% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $250 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $260 million.
Required:
1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate.
3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2021, balance sheet.
4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $260 million. Prepare the journal entries required on the date of sale.
Journal Entry 4a
Prepare any journal entry needed to adjust the investment to fair value.
Journal Entry 4b
Record the sale of the investment by Tanner-UNF.

Answers

Answer:

1. July 1, investment in UNF bonds

Dr Investment in bonds HTM 300,000,000

  Cr Cash 250,000,000

  Cr Discount on bonds 50,000,000

December 31, interest revenue from investment in bonds

Dr Cash 9,000,000

Dr Discount on bonds 1,000,000

  Cr Interest revenue 10.000,000

Discount on bonds = ($250,000,000 x 4% x 1/2) - ($300,000,000 x 3% x 1/2) = $1,000,000

2. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance sheet.

Investment in bonds HTM = $300,000,000 (face value) - $49,000,000 (discount on bonds) = $251,000,000

Changes in the market value of bonds held to maturity are not considered by the company.

4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310.0 million. Prepare the journal entry to record the sale.

Dr Cash 310,000,000

Dr Discount on bonds 49,000,000

   Cr Investment in bonds HTM 300,000,000

   Cr Gain on investment in bonds HTM 59,000,000

2) A soft drinks manufacturer sells each can for 50p. The variable costs per can are 10p. Fixed costs per year are £4 million. How much profit will be made if the business sells 15 million cans?
A- £2 million
B- £3 million
C- £6 million
D- £3.5 million​

Answers

Answer:

Profit on 15,000,000 cans = £2 million

Explanation:

Given:

Sales price per can = £0.5

Variable cost per can = £0.1

Fixed costs per year = £4,000,000

Find:

Profit on 15,000,000 cans

Computation:

Profit on 15,000,000 cans = (Sales price per can)(15,000,000) - Fixed costs per year - (Variable cost per can)(15,000,000)

Profit on 15,000,000 cans = (£0.50)(15,000,000) - £4,000,000 - (£0.10)(15,000,000)

Profit on 15,000,000 cans = £7,500,000 - £4,000,000 - £1,500,000)

Profit on 15,000,000 cans = £2,000,000

Profit on 15,000,000 cans = £2 million

D
Lee Associates borrowed $60,000. The company plans to set up a sinking fund that
will pay back the loan at the end of 12 years. Assuming a rate of 8% compöunded
semiannually, the amount to be paid into the fund each period is):

Answers

Answer: $ 153698.2499

Explanation:

60000(1+0.08/2)^24=153798.2499

when sam returned home from the grocery Store, he realized that he did not have his wallet. His wallet contains his credit card, debit Card, drivers license, and some cash what would you do in this situation? explain answer. ty​

Answers

Answer: go back and find the wallet and if I can’t find it go to the police so they can track my card

Explanation:

I would go back to the grocery store to check for the wallet. If I did not find it, I’d cancel the credit cards and stuff so nobody can use it.

. Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight off her total
6. Using the Loan Calculator(https://www.bankrate.com/calculators/mortgages/loan-calculator.aspx) and the 1.9% APR offer, how much will Molly’s monthly payment be?

Answers

Answer: $286

Explanation:

First and foremost, we have to calculate the loan that is need by Molly which will be:

= $25495 - $2500 - $500

= $22495

At 1.9% APR, the monthly interest rate will be:

= 1.9%/12

= 0.0112

=0.001583

Since the number of payments is 84, then the monthly payment of Molly will be:

= 22495 × 0.001583 / (1-1/1.001583^84)

= $286

Tom has brought $150,000 from his pension to a new job where his employer will match
401(k) contributions dollar for dollar. Each year he contributes $3,000. After seven years,
how much money would Tom have in his 401(k)? Show your calculations.

Answers

Does anybody else don’t have a ad on brianly

Critics of the wealth gap might argue that

economic growth will likely decline over time.
the upper classes cannot help create new jobs.
the wealthy become unable to make investments.
buying power exceeds the supply from producers.

Answers

Answer:

economic growth will likely decline over time. Mark brainliest

Explanation: i did the test

The critics of the wealth gap may argue that an economic growth will likely decline over time.

Who are the critics of wealth gap?

The critics are people that does not fascinate the idea of wealth gap in an economy.

Hence, they are more likely to argue that an economic growth will likely decline over time because they do not fascinate the gap of wealth economically.

Therefore, the Option A is correct.

Read more about critics of wealth gap

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An economist for the Brookings Institution argues that​ "a price on carbon would minimize the cost of steering economic activity away from the greenhouse gas emissions that threaten the​ climate."
​Source: Fred​ Dews, "10 Things You Should Know about the Carbon​ Tax," brookings.edu, May​ 4, 2016.
In what sense does a carbon tax put a price on​ carbon?
A carbon tax puts a price on carbon by increasing the private cost of polluting.
C.
A carbon tax puts a price on carbon by decreasing the social benefit of polluting.
D.
A carbon tax puts a price on carbon by decreasing the private benefit of polluting.

Answers

Answer:

A carbon tax puts a price on carbon by increasing the private cost of polluting.

Explanation:

Going by the argument of the economist of Booking institution, it can be concluded that a carbon tax put a price on​ carbon "by increasing the private cost of polluting."

As the private cost of polluting increases, this will discourage the private individuals or businesses in carrying out activities that emit greenhouse gases in the human environment which in turn threatens the​ climate.

We are evaluating a project that costs $644,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 70,000 units per year. Price per unit is $37, variable cost per unit is $21, and fixed costs are $725,000 per year. The tax rate is 35 percent, and we require a 15 percent return on this project.

Required:
a. Calculate the accounting break-even point.
b. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.
c. What is the sensitivity of OCF to changes in the variable cost figure? Explain what your answer tells you about a $1 decrease in estimated variable costs.

Answers

Solution :

a).

Particulars                                                Details

Selling price per unit                                 37

Less : variable cost per unit                     -21

Margin per unit                                           16

No. of units sold per unit                       70,000

Gross margin                                        11,20,000

Less : fixed cost                                     - 7,25,000

Profit before depreciation and tax       3,95,000

Less : depreciation                                -80,500

Profit before tax                                     3,14,500

Less : Tax                                               -1,10,075

Net profit per year                                 2,04,425

Project Cost                                           6,44,000

Accounting breakeven point in years     3.15

b).

Calculating the base Cash - Cash flow and NPV

Particulars                                                       Amount

Net profit per year                                        2,04,425

Add : depreciation                                         80,500

Base Cash cashflow                                     2,84,925

Required rate of return                                    15%

Present value of base cash cash flow        12,78,550

received in 8 years.

Project cost                                                  -6,44,000

NPV                                                               6,34,550

The present value of base cash cash flow received in 8 years is calculated as Present value of annuity received at the end of each year $ 2,84,925 at the rate of interest 15% for a period of 8 years.

The sensitivity of the NPV to 500 units decrease in projected sales :

Particulars                                                          Details

Selling price per unit                                            37

Less : variable cost per unit                                -21

Margin per unit                                                     16

Number of units sold per year                          69,500

Gross margin                                                      11,12,000

Less : fixed cost                                                -7,25,000

Profit before depreciation and tax                   3,87,000

Less : depreciation                                            -80,500

Profit before tax                                                 3,06,500

Less : tax                                                            -1,07,275

Net profit per year                                             1,99,225

Add : depreciation                                              80,500

Base Cash cashflow                                          2,79,725

Required rate of return                                         15%

Present value of base cash cash flow              12,55,216

received in 8 years.

Project cost                                                    -6,44,000

NPV                                                                6,11,216

Original NPV                                                  6,34,550

Sensitive NPV                                                  -23,334

c).

Particulars                                                              Details

Selling price per unit                                               37

Less : variable cost per unit                                   -20

Margin per unit                                                        17

No. of units sold per year                                     70,000

Gross Margin                                                         11,90,000

Less : fixed cost                                                     -7,25,000

Profit before depreciation and tax                       4,65,000

Less : Depreciation                                                -80,500

Profit before tax                                                     3,84,500

Less : tax                                                                -1,34,575

Net profit per year                                                  2,49925

Add : depreciation                                                   80,500

Operating cash flow                                               3,30,425

Original operating cashflow                                   2,84,925

Sensitivity of OCF                                                      45,500

A 1987 advertisement in the New Yorker solicited offers on a 1967 Mercury Cougar XR7 (Motor Trend's 1967 car of the year) that had been stored undriven in a climate controlled environment for 20 years. If the original owner paid $4000 for this car in 1967, what price would he have to receive in 1987 to obtain a 10 percent annual return on his investment?

Answers

Answer:

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A 1987 advertisement in the New Yorker solicited offers on a 1967 Mercury Cougar XR7 (Motor Trend's 1967 car of the year) that had been stored undriven in a climate controlled environment for 20 years.

If the original owner paid $4000 for this car in 1967, what price would he have to receive in 1987 to obtain a 10 percent annual return on his investment?

---------

If the 10% is compounded yearly the price is as followed.

A(10) = 4000(1+(0.10/1))^(10*1)

---

A(10) = 4000(1.1)^10

---

A(10) = $10,374.97

======================

Cheers,

Stan H.

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