Ethan is developing a magazine ad. He writes an attention-getting headline
and body copy that will engage readers. He places the company's logo near
the bottom of the ad. What is another basic part of print advertising that he
should consider including?
A. A visual that supports the message
B. A storyboard to engage the audience
C. Interactive features to engage the audience
D. A script arranged in two columns

Answers

Answer 1

Answer:

a visual that supports the message

Explanation:

answer

Answer 2

A basic part of print advertising that Ethan should consider for a magazine ad is a visual that supports the message. Thus the correct answer is option A.

What is advertising?

Advertising refers to the methods used to draw attention to a good or service. In order to attract consumers' attention, advertising seeks to highlight a good or service. It is often used to market a particular product or service, although there are many other applications as well, with commercial advertising being the most popular.

Print advertisement that appear in magazines are referred to as magazine advertising. Magazine advertising makes use of print media to promote the goods, services, or message of your company in regional or national magazines. Along with a headline and body copy that grab readers' attention, a strong image will draw viewers to the advertisement.

Therefore, a visual that supports the message is a basic part of print advertising.

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Related Questions

discuss the negative impact of the socio-economic issues identified in QUESTION 1.5lack of skill on business.​

Answers

Answer:

A lack of skill in business may have many negative socio-economic impacts, both at the societal level, and at the individual level.

Explanation:

At the societal level, this lack of business skills may produce a society in which entrepreneurship is low, which causes the private sector have poor dynamic, and economic growth to be sluggish. This can create an array of  negative socio-economic issues from unemployment, to poverty, to income inequality.

At the individual level, lack of business skills represents a handicap for individuals who would like to become business owners, but are thus unable to do so effectively. Their business may fail very quickly, leaving individuals in debt, or they may simply not start businesses at all, and be employees all their lives.

Tru-Shine is a cleaning company in the United States that offers various cleaning products and services. After gaining popularity in the United States, th company decided to expand its business in other North American nations. The company entered into an agreement with some local cleaning companies in Canada where the local companies would sell its products and services under the same trade name. Tru-Shine also agreed to provide the training and necessary equipments and supplies to the local companies. In this example, the strategy used by Tru-Shine for entering foreign markets is an example of
a. direct investment
b. value engineering
c. franchising
d. sole sourcing

Answers

Answer:

C. Franchising

Explanation:

Franchising can be defined as a way of distributing goods and services that involves a franchisee starting a business by using someone else's 8deas and their expertise legally. To be a franchisee you have to buy this right by paying an initial fee

In this question tru shine is the franchisor because this other company wants to sell their products and services using tru shines name.

A portfolio consists of three stocks. There are 540 shares of Stock A valued at $24.20 share, 310 shares of Stock B valued at $48.10 a share, and 200 shares of Stock C priced at $26.50 a share. Stocks A, B, and C are expected to return 8.3 percent, 16.4 percent, and 11.7 percent, respectively. What is the expected return on this portfolio

Answers

Answer: 12.47%

Explanation:

The value of each stock will be gotten by their unit multiplied by the price.

Value of Stock A = 540 × 24 2 = 13068

Value of stock B = 310 × 48.1 = 14911

Value of stock C = 200 × 26.5 = 5300

Total value of stock = 33279

Weight of stock A = 13068 / 33279 = 0.393

Weight of stock B = 14911 / 33279 = 0.448

Weight of stock C = 5300 / 33279 = 0.159

The expected return on this portfolio will then be:

= (0.393 × 8.3) + (0.448 × 16.4) + (0.159 × 11.7)

= 12.47%

Barans Company purchased merchandise on account from a supplier for $12,900, terms 1/10, n/30. Barans Company returned $2,500 of the merchandise and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? $fill in the blank 1 b. What account is credited by Barans Company to record the return?

Answers

Answer: See explanation

Explanation:

a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment?

The amount of cash required for the payment will be:

Purchases: = $12,900

Less: Returns = $2500

Less: Discount = ($12900 - $2500) × 1% = ($10400 × 1%) = $104

Cash required for payment = $10296

b. What account is credited by Barans Company to record the return?

Based on the information above, the merchandise inventory will be credited.

Marigold Manufacturing thinks that the best activity base for its manufacturing overhead is machine hours. The estimate of annual overhead costs is $620000. The company used 1000 hours of processing for Job A15 during the period and incurred actual overhead costs of $630000. The budgeted machine hours for the year totaled 20000. What amount of manufacturing overhead should be applied to Job A15

Answers

Answer:

$31,000

Explanation:

Overhead rate = $620000 / 20000 = $31.00

Applied overheads = 1000 x $31.00 = $31,000

manufacturing overhead should be applied to Job A15 are $31,000

what is a savings and loans bank? advantages and disadvantages.​

Answers

Three advantages of savings accounts are the potential to earn interest, it's easy to open and access, and FDIC insurance and security. Three disadvantages of savings accounts are minimum balance requirements, lower interest rates than other accounts/investments, and federal limits on saving withdrawal.

Huduko Inc. offers a number of computer services. Huduko operates with a utilization of 30 percent. The interarrival time of jobs is 8 milliseconds (0.008 second) with a coefficient of variation of 1.5. On average, there are 20 jobs waiting in the queue to be served and 60 jobs in process (i.e., being processed by a server rather than waiting to be sent to a server for processing).

Required:
How many servers do they have in this system?

Answers

Answer:

Huduko Inc.

The number of servers in this system is:

= 200.

Explanation:

a) Data and Calculations:

Utilization rate = 30%

Interarrival time of jobs = 8 milliseconds (0.008)

Coefficient of variation = 1.5

Average jobs waiting in the queue to be served = 20

Number of jobs in process = 60

Number of servers processing the 60 jobs = 60

Since the number of servers processing at a time is 60 with a utilization rate of 30%, it means that there are 200 servers in the system (60/30%).

On January 2, 2020, Swifty Corporation wishes to issue $5100000 (par value) of its 7%, 10 year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 10N Using the interest factors below.compute the amount that Swifty will realize from the sale (issuance of the bands Present value of lat 756 for 10 periods 0.5083 Present value of 1 at 1096 for 10 periods Present value of an ordinary annuity at for 10 periods 70236 Present value of an ordinary annuity at 10 for 10 periods 6.1446 a. $5100031 b. $5640733 c. $4159672 d. $5100000

Answers

Answer:

c. $4159672

Explanation:

Computation to determine the amount that Swifty will realize from the sale

First step is to calculate the annual interest payment

Annual interest payment=$5,100,000 × .07

Annual interest payment=$357,000

Now let calculate the amount that Swifty will realize from the sale

Sales realized amount=($347,000 × 6.1446) + ($5,100,000 × 0.3855)

Sales realized amount=$2,193,622+ $1,966,050

Sales realized amount =$4,159,672

Therefore the amount that Swifty will realize from the sale will be $4,159,672

What is the Best loan option for your
lemonade Stand? Why?

Answers

Answer:

Short term loan

Explanation:

Lemonade stand can be regarded as a small business, Hence, the loan that suit the business is " Short term loan".

Short term loan can be regarded as loan that can be obtained to give support to ones personal as well as business capital. It is designed for the needs of small business capital with less interest compare to long term loan. The period of payment is usually within a year. It is of low risk and good profit.

ABC estimates uncollectible accounts based on the percentage of accounts receivable. What effect will recording the estimate of uncollectible accounts have on the accounting equation

Answers

Answer: Decrease assets and decrease stockholders' equity

Explanation:

If ABC estimates the uncollectible accounts based on the percentage of accounts receivable, the effect that the recording of the estimate of the uncollectible accounts will have on the accounting equation is that there will be a decrease in assets and there'll also be a decrease in the stockholders' equity.

We should note that the accounts uncollectible simply refers to the loans, receivables or other forms of debt that there's no chance of it being paid. Therefore, when they are estimated based on the percentage of accounts receivable, there'll be a reduction in both the assets and the stockholders equity.

Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.95, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is Dyer's current stock price? Select the correct answer. a. $13.66 b. $12.32 c. $11.65 d. $12.99 e. $14.33

Answers

Answer:

$11.65

Explanation:

The first step is to calculate the return

= 4/100 + 1.95(5.50/100)

= 0.04 + 1.95(0.055)

= 0.04 + 0.10725

= 0.14725

The stock price can be calculated as follows

= 1.25/0.14725-0.04

= 1.25/0.10725

= $11.65

Hence the stock price is $11.65

Identify some of the gains that labor unions have made in the United States. What gain do you think is the most important? Why? 15 points

Answers

Answer:

Unions have achieved many of their goals for improving working conditions in the United States. Workers in the United States today enjoy higher wages, safer work environments, and shorter work days than workers in previous years. Workers today also have paid vacations and fringe benefits. Also, because of labor unions, the collective bargaining process has helped define acceptable actions for labor and management. (Students should state which of the above listed achievements they consider to be the most important and why.)

Explanation:

hope this helps :)

Answer:

he is correct it is...

Explanation:

"Unions have achieved many of their goals for improving working conditions in the United States. Workers in the United States today enjoy higher wages, safer work environments, and shorter work days than workers in previous years. Workers today also have paid vacations and fringe benefits. Also, because of labor unions, the collective bargaining process has helped define acceptable actions for labor and management. (Students should state which of the above listed achievements they consider to be the most important and why.)"

The Krisp Kracker company which makes unique kettle chips for restaurants, clubs, and events, has just lost a large client that made up 55% of its total revenue. Management finds it necessary to reduce staff or wages. This comes only three months after hiring 35 new people to support this big client. While there are rumors of wage reductions in the short run, the 100 employees who have been with the company for the past two years are grumbling that they are more valuable that the new hires which should be let go and the wages not reduced. The situation at Krisp Kracker illustrates which wage stickiness theory best

Answers

Answer:

The Krisp Kracker Company

The situation at Krisp Kracker illustrates the Insider-Outsider Wage Stickiness theory best.

Explanation:

This theory suggests that the 100 employees are the insiders while the 35 newly employed are outsiders.  Therefore, at negotiations between the employer and the employees, the 100 employees would also like to negotiate employment terms to the exclusion of the outsiders because they feel that they enjoy a juicier and more privileged position.

1. This year, GHJ Inc. received the following dividends: BP Inc. (a taxable California corporation in which GHJ holds a 2% stock interest) $6,000 MN Inc. (a taxable Florida corporation in which GHJ holds a 52% stock interest) 7,000 AB Inc. (a taxable Canadian corporation in which GHJ holds a 21% stock interest) 10,000 $23,000 a) Compute GHJ Inc.’s dividend-received deduction

Answers

Answer:

Total dividends-received deduction = $17,550

Explanation:

These can be computed as follows:

Dividend-received deduction on BP dividend = Dividend received from BP * 50% = $6000 * 50% = $3,000

Dividend-received deduction on MN dividend = Dividend received from MN * 65% = 7,000 * 65% = $4,550

Dividend-received deduction on AB dividend = Dividend received from AB * 65% = 10,000 * 100% = $10,000

Total dividends-received deduction = Dividend-received deduction on BP dividend + Dividend-received deduction on MN dividend + Dividend-received deduction on AB dividend = $3,000 + $4,550 + $10,000 = $17,550


Which statement describes why the people in a nation with a command
economy might resist a shift to a free market economy?
A. People who hold political power are threatened by fundamental changes.
B. Workers are reluctant to give up their participation in a classless society.
C. Workers are reluctant to accept complete government control of their economy.
D. Factory and business owners are reluctant to place their capital under worker
authority Xd

Answers

Answer:

People who hold political power are threatened by fundamental changes.

Explanation:

People who hold political power are threatened by fundamental changes  is the statement describes why the people in a nation with a command economy might resist a shift to a free market economy. Thus, option (a) is correct.

What is economy?

The mechanism through which a nation or region organizes its money, industry, and trade is concerned to as its “economy.” The economy is the important part of the country. The primary sector of the economy is the industrial sector and agriculture sector. The family (consumption) and company (product sales) are both parts of the economy.

According to the population is the important part of the economy. The individual citizen in the nation is a command economy might resist a shift to a free market economy. A people are the special rights to hold political power are imperiled by fundamental changes.

As a result, the significance of the economy are the aforementioned. Therefore, option (a) is correct.

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A competitive firm sells its output for $50 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 10 units of output per day; the marginal product of the 11th worker is 8 units of output per day. The firm pays its workers a wage of $160 per day. For the 10th worker, the value of the marginal product of labor is

Answers

Answer:

the value of the marginal product of labor is $500

Explanation:

The computation of the value of the marginal product of labor is shown below:

= MRP × price per unit

= 10 units × $50 per unit

= $500

hence, the value of the marginal product of labor is $500

We simply applied the above formula

A process in which computer software that uses statistical analysis, database technology, and artificial intelligence finds hidden patterns, trends, and connections in data so that business owners can make better marketing decisions and predictions about customers' behavior is known as ________. Group of answer choices Total Quality Management Data Mining Guerilla Marketing Individualized Marketing

Answers

Answer:

Data Mining

Explanation:

A database management system (DBMS) can be defined as a collection of software applications that typically enables computer users to create, store, modify, retrieve and manage data or informations in a database. Generally, it allows computer users to efficiently retrieve and manage their data with an appropriate level of security.

A data dictionary can be defined as a centralized collection of information on a specific data such as attributes, names, fields and definitions that are being used in a computer database system.

In a data dictionary, data elements are combined into records, which are meaningful combinations of data elements that are included in data flows or retained in data stores.

This ultimately implies that, a data dictionary found in a computer database system typically contains the records about all the data elements (objects) such as data relationships with other elements, ownership, type, size, primary keys etc. This records are stored and communicated to other data when required or needed.

A process in which computer software that uses statistical analysis, database technology, and artificial intelligence finds hidden patterns, trends, and connections in data so that business owners can make better marketing decisions and predictions about customers' behavior is known as data mining. It plays a significant role in the growth and development of a business and its products or services.

which quote best represents a person performing a cost-benefit analysis​

Answers

I need help on that too

Rebecca does not want to work in a hospital so there are no jobs that would fit her
in the Health Sciences Cluster

-True
-False

Answers

Answer:

False

Explanation:

Answer: The answer is False

Explanation: I took the test and it was right

Hope this helps :)

Why aren't they hiring kids to work for Epic Games? They could give the workers more ideas. Not that they don't have good ideas already. Wouldn't they?

Answers

Yea they would like I feel like kids will come up with the most entertaining and fun games .

a term used when the products are sold directly to their end consumers or user without third-party retailers wholesalers or other middle men​

Answers

Direct selling. Or exporting. I’m not too sure

Jones Furniture Company produces beds and desks for college students. The production process requires carpentry and varnishing. Each bed requires 6 hours of carpentry and 4 hour of varnishing. Each desk requires 4 hours of carpentry and 8 hours of varnishing. There are 36 hours of carpentry time and 40 hours of varnishing time available. Beds generate $30 of profit and desks generate $40 of profit. Demand for desks is limited, so at most 8 will be produced.a. Formulate the LP model for this problem. b. Solve the problem using the graphical method.

Answers

Explanation:

To  formulate the LP model for this problem,

Let,

X1 = Number of beds to produce

X2 = Number of Desks to produce

Our objective function:

Max: 30X1 + 40X2

Constraints:

6X1 + 4X2 ≤ 36 available carpentry hours 4X1 + 8X2 ≤ 40 available vanishing hoursX2 ≤ 8 (demand for X2)X1, X2 ≥0

Based on the constraints information as well as the objective function you can then solve using the graphical method.

Practice Drawing Timelines!
Purpose: This section describes how to draw a timeline and visualizing the problem being presented. It is important because a time problem that is set up incorrectly will lead to incorrect answers. For each of the descriptions below, draw the timeline on your own.
Inserted a picture of your timeline (the picture can be a jpeg or pasted in a word document).
Criteria: Full points will be based three separate timelines attached as a picture. Your work should be original and not copied, borrowed, or obtained from another student (this would be cheating as defined by Texas Tech University and stated in the syllabus).
Consider an asset that generates $3,000 in 5 years and $5,000 in 1 year; discount rate - 6% (These are uneven cash flows- there is no pattern).
2. Consider an asset that pays $500 per year for 8 years (This is an annuity- it is the same cash flow, evenly spaced, for a finite time (it has an end)).
3. Consider an asset that pays $50 per year starting at the end of year 3 (This is a delayed perpetuity- it is the same cash flow evenly spaced forever, but does not begin until a future date).

Answers

Answer:

1. Since the last cash flow occurs at year 5, the timeline ends at 5th year.

2. Since the same cash flow for a finite time of 8 years, the timeline ends at 8th year.

3. The 3 dots at the end of the timeline indicates a perpetuity.

Explanation:

A timeline refers to a line that shows the timing and amount of cash flows. Therefore, we have:

1. Consider an asset that generates $3,000 in 5 years and $5,000 in 1 year; discount rate - 6% (These are uneven cash flows- there is no pattern).

Note: See number 1 in the attached photo for the timeline.

The fact that the last cash flow occurs at year 5 makes the timeline to end at 5th year.

It can also be seen in the timeline that the 6% discount rate is shown in between the previous period and the next.

2. Consider an asset that pays $500 per year for 8 years (This is an annuity- it is the same cash flow, evenly spaced, for a finite time (it has an end)).

Note: See number 2 in the attached photo for the timeline.

The fact that the same cash flow for a finite time of 8 years makes the timeline to end at 8th year.

3. Consider an asset that pays $50 per year starting at the end of year 3 (This is a delayed perpetuity- it is the same cash flow evenly spaced forever, but does not begin until a future date).

Note: See number 3 in the attached photo for the timeline.

It should be noted the 3 dots at the end of the time line indicates a perpetuity.

Consider relative purchasing power parity (PPP) and remember the consumer price index (CPI) provides the price level in a country at any point in time. Assume CPI in the US is 165 in 2010 and 200 in 2015, and CPI in Canada is 170 in 2010 and 220 in 2015 (with base year as 2000). If the spot exchange rate was 0.7640 USD/CAD in 2010, what is it in 2015 if relative PPP holds

Answers

Answer:

0.7156 USD/CAD

Explanation:

Relationship between relative PPP and inflation rates can be expressed as given below:

S(1)/S(0) = (1+I(y)) / (1+I(x))................(1)

==> S(0) = spot exchange rate at the beginning of the time period

==> S(1)  = spot exchange rate at the end of the time period

==> I(y) = expected inflation rate for country y, which is foreign country

==> I(x) = expected inflation rate for country x, which is domestic country.

Here, assumes that the US is a foreign country and Canada is domestic country

I(y) = (200/165) - 1 = 21.21%

I(x) = (220/170) - 1 = 29.41%

On putting the values of I(x) and I(y) in the first equation, we get:

S(1)/0.764 = (1+0.2121) / (1+0.2941)

S(1)/0.764 = 0.9366354996

S(1) = 0.764*0.936635

S(1) = 0.7156 USD/CAD

If relative PPP holds, the spot exchange rate in 2015 will be 0.7156 USD/CAD

Snappy Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $54,400 and 32,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $2,736 in direct materials and $1,664 in direct labor. The labor rate is $5.20 per hour. By the end of the year, Snappy had worked a total of 37,000 direct labor-hours and had incurred $64,650 actual manufacturing overhead cost. If Job #334 contained 120 units, the unit product cost on the completed job cost sheet would be:

Answers

Answer:

Unitary cost= $41.2

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (54,400/32,000)

Predetermined manufacturing overhead rate= $1.7 per direct labor hour

Now, we can allocate overhead based on actual direct labor hours:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Direct labor hours= 1,664 / 5.2= 320

Allocated MOH= 1.7*320= $544

Finally, the total cost and unitary cost:

Total cost= 544 + 1,664 + 2,736

Total cost= $4,944

Unitary cost= 4,944 / 120

Unitary cost= $41.2

Your employer contributes $75 a week to your retirement plan. Assume that you work for your employer for another 20 years and that the applicable discount rate is 7.5 percent. Given these assumptions, what is this employee benefit worth to you today

Answers

Answer:

This employee benefit is worth $40,384.69 today.

Explanation:

a) Data and Calculations:

Employer contributions per week = $75

Period of work for the employer = 20 years (20 * 52 = 1,040)

Applicable discount rate is 7.5%

PV = $40,384.69

Sum of all periodic contributions = $78,000.00 ($75*20*52)

Total Interest = $37,615.31

b) The worth of the employee benefit equals the present value of all the contributions by the employer and the accompanying interest, compounded weekly at 7.5% per annum for a period of 20 years.

A call option on MassComputer Corp. is trading with a strike price of $100 and an expiration date on November 18th at 4 pm in the afternoon. The premium paid on the call is $5.05. What is the net profit or loss from buying the call just prior to 4 pm on November 18 if at this time the stock price per share of MassComputer is: a.$102.32 Answer:The net profit is $ -2.73 b.$97.62 Answer:The net profit is $ -7.43

Answers

Answer and Explanation:

The computation is shown below:

In the case when the stock price is $102.32

So, the net profit is

= $102.32 - $100 - $5.05

= -$2.73

In the case when the stock price is $97.62 is

= $97.62 - $100 - $5.05

= -$7.43

Hence, the same would be considered and relevant too

A soup kitchen falls under what type of organization?

National School Lunch Program
Nutrition Program for the Elderly
Expanded Food and Nutrition Education Program
Food Bank

Answers

food bank because they used a soup kitchen during the Great depression and it's for the homeless people too it has to be program

A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $16,000 indicates that Dept. Y had a direct expense of $1,700 for deliveries and Dept. Z had no direct expense. The indirect expenses are $14,300. The analysis also indicates that 50% of regular delivery requests originate in Dept. Y and 50% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:

Answers

Answer:

$8,850;$7,150

Explanation:

Calculation for Departmental delivery expenses for Dept. Y

Using this formula

Departmental delivery expenses Dept. Y= Direct expense + Indirect expense × given percentage

Let plug in the formula

Departmental delivery expenses Dept. Y= $1,700 + $14,300 × 50%

Departmental delivery expenses Dept. Y= $1,700 + $7,150

Departmental delivery expenses Dept. Y= $8,850

Calculation for Departmental delivery expenses for Dept. Z,

Using this formula

Departmental delivery expenses for Dept. Z= Indirect expense × given percentage

Departmental delivery expenses for Dept. Z= $14,300 × 50%

Departmental delivery expenses for Dept. Z= $7,150

Therefore The Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:$8,850;$7,150

Your grandparents would like to share their fortune with you. They offer you money under one of the following scenarios: 1. $7,250 per year at the end of each of the next eight years. 2. $49,650 (lump sum) now 3. $98,650 (lump sum) eight years from now Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value

Answers

Answer:

$98,650 (lump sum) eight years from now yields the highest present value.

Explanation:

This can be determined as follows:

1. Calculation of the present value of $7,250 per year at the end of each of the next eight years.

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = present value of $7,250 per year at the end of each of the next eight years = ?

P = Annual payment = $7,250

r = discount rate = 8% or 0.08

n = number of years = 8

Substitute the values into equation (1), we have:

PV =$7,250 * ((1 - (1 / (1 + 0.08))^8) / 0.08)

PV = $41,663.13

2. Calculation of the present value of $49,650 (lump sum) now

Since now is the present time, the present value of $49,650 (lump sum) now is still equal to $49,650.

3. Calculation of the present value of $98,650 (lump sum) eight years from now

This can be calculated using the present value formula as follows:

PV = FV / (1 + r)^n ................... (2)

Where:

PV = present value of $98,650 (lump sum) eight years from now = ?

FV = future value or (lump sum) eight years from now = $98,650

r = discount rate = 8% or 0.08

n = number of years = 8

Substitute the values into equation (2), we have:

PV = $98,650 / (1 + 0.08)^8

PV = $53,297.53

Comparison of the present values

1. Present value of $7,250 per year at the end of each of the next eight years = $41,663.13

2. Present value of $49,650 (lump sum) now = $49,650

3. Present value of $98,650 (lump sum) eight years from now = $53,297.53

As can be seen from the above, $98,650 (lump sum) eight years from now yields the highest present value.

Other Questions
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