Qualcomm has developed a groundbreaking new CPU chip. The patent on the chip will last 17 years. You expect that the chip’s profits to be $4 million in its first year and that this amount will grow at a rate of 5% per year for the next 17 years. Once the patent expires, Intel will be able to produce the same chip and competition will likely drive profits to zero. What is the present value of the new chip if the interest rate is 8% per year?

Answers

Answer 1

Answer:

$50.74 million

Explanation:

Interest rate per annum = 8%

Number of years = 17

Number of compounding per annum = 1

Interest rate per period (r) = 8%/1 = 8%

Number of period (n) =17 * 1 = 17

Growth rate (g) = 5%

First payment (P) = 4 ($'million)

PV of the new Chip = p/(r-g) * [1 - [(1+g)/(1+r)]^n]

PV of the new Chip = 4/(8%-5%) * [1 - [(1+5%)/(1+8%)]^17]

PV of the new Chip = 4/0.03 * [1 - [1.05/1.08]^17]

PV of the new Chip = 4/0.03 * [1 - 0.972222^17]

PV of the new Chip = 133.333 * (1 - 0.6194589804)

PV of the new Chip = 133.333 * 0.3805410196

PV of the new Chip = 50.7386757663268

PV of the new Chip = $50.74 million


Related Questions

One of the assumptions underlying the production possibilities curve (or
production possibilities frontier) for any given economy is that
A. all societies will choose to operate at a point inside the curve
B. there is full employment of resources when the economy is on the
curve
C. goods can be produced outside the curve.
D. there is an unlimited supply of resources.
E the state of technology changes

Answers

Option B there is fill employment of resources when the economy is on the curve.

Resources are fully utilized when the economy is on the production possibility curve. Therefore, option B is correct.

What is the Production possibility curve?

The production possibilities curve displays different production volume combinations for two items utilizing fixed resources. The idea is that if the production of one commodity rises, the output of the other will fall.

The essential assumptions of the production possibility curve are: Resources are provided and don't change. The technology employed in the manufacturing process doesn't change. The resources are effectively and completely used.

The Production possibility curve is useful for demonstrating the ideas of scarcity, opportunity cost, efficiency, and economic development and contraction.

Learn more about the Production possibility curve here:

https://brainly.com/question/14183466

#SPJ2

Your SWOT analysis reveals no obvious options for growth with your current product lines. So you decide to use some retained earnings the firm has been saving and launch new product lines. After careful analysis you decide to launch two new product lines, one centered on plastic bags (such as trash bags and sandwich bags), the other a line of automobile-care products (such as soaps and waxes). Which corporate-level strategy are you pursuing

Answers

Answer:

"Unrelated diversification" is the correct solution.

Explanation:

Unrelated diversification would be a kind of diversification whenever a company introduces additional as well as completely irrelevant product range as well as enters market opportunities. This somehow happens whenever the company starts trying to consolidate into firms that support the concept and among the most commercial reward for something like an institution.

At December 31, 2021, Crane Imports reported this information on its balance sheet. Accounts receivable $637,000 Less: Allowance for doubtful accounts 35,000 During 2022, the company had the following transactions related to receivables. 1. Sales on account $3,060,000 2. Sales returns and allowances 50,000 3. Collections of accounts receivable 2,760,000 4. Write-offs of accounts receivable deemed uncollectible 42,000 5. Recovery of bad debts previously written off as uncollectible 15,000 (a) Prepare the journal entries to record each of these five transactions

Answers

Answer:

Crane Imports

Journal Entries:

1. Debit Accounts Receivable $3,060,000

Credit Sales Revenue $3,060,000

To record the sales on account.

2. Debit Sales Returns and Allowances $50,000

Credit Accounts Receivable $50,000

To record sales returns and allowances.

3. Debit Cash $2,760,000

Credit Accounts Receivable $2,760,000

To record cash collections from customers.

4. Debit Uncollectible Expenses $42,000

Credit Allowance for Doubtful Accounts $42,000

To record uncollectible accounts.

5. Debit Accounts Receivable $15,000

Credit Uncollectible Expenses $15,000

To reinstate a previously written bad debt.

Debit Cash $15,000

Credit Accounts Receivable $15,000

To record the receipt of cash on account.

Explanation:

a) Data and Calculations:

Accounts receivable $637,000

Less: Allowance for doubtful accounts 35,000

Balance = $602,000

b) Journal entries are used to initially record business transactions as they occur on a daily basis.  They identify the accounts to be debited and credited.  They form the basis for the postings to the general ledger where accounts are summarized according to their account titles.

Rousey, Inc., had a cash flow to creditors of $16,785 and a cash flow to stockholders of $7,307 over the past year. The company also had net fixed assets of $49,605 at the beginning of the year and $57,010 at the end of the year. Additionally, the company had a depreciation expense of $12,156 and an operating cash flow of $50,868. What was the change in net working capital during the year

Answers

Answer:

$7,215

Explanation:

The change in net working capital can be determined using the formula cash flow from assets provided below:

Cash flow from assets=operating cash flows-net capital spending-change in working capital

Cash flow from assets=cash flow to creditors+cash flow to shareholders

Cash flow from assets=$16,785+$7,307=$24,092

operating cash flows=$50,868

net capital spending=$57,010-$49,605+ $12,156=$19,561

$24,092=$50,868-$19,561-change in working capital

change in working capital=$50,868-$19,561-$24,092

change in working capital=$7,215

Effective project teams have a results orientation; each person has a strong commitment to accomplishing the project objective . There is a high degree of

Answers

Answer:

Effective Project leadership

Explanation:

When working on a project together, everyone has to be on the same page regarding the end goals and the means to reach the end goals. A team can only be called effective if every person is result oriented. If everyone in the team has the same level of commitment towards completing their project and thus accomplishing the objective, it is because of a high degree of Effective project leadership. An effective leader has the quality to work with different type of people and also getting the effective results.

Garcia Industries has sales of $167,500 and accounts receivable of $18,500, and it gives its customers 25 days to pay. The industry average DSO is 27 days, based on a 365-day year.If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the industry average, and if it earns 8.0% on any cash freed-up by this change, how would that affect its net income, assuming other things are held constant

Answers

Answer:

c. $488.77

Explanation:

Incomplete question "Assume all sales to be on credit. Do not round your intermediate calculations. Hint: focus on the DSO to figure out how much freed-up cash the company will have. Freed-up cash will be invested at 8%. a. $386.13 b. $601.18 c. $488.77 d. $562.08 e. $537.64"

Accounts Receivable (Industry DSO) = Sales Value*Industry Average DSO/Total Days in the Year

Using the values provided in the question in the above formula, we get, Accounts Receivable (Industry DSO) = 167,500*27/365 = $12,390.41

Freed-Up Cash = Value of Accounts Receivable at Company's DSO - Value of Accounts Receivable for Industry Average = 18,500 - 12,390.41 = $6,109.59

Effect on Net Income = Freed-Up Cash*Rate of Return = 6,109.59*8% = $488.77.

fatas Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 102,000 units were completed in the Assembly Department and transferred to the next processing department. There were 1,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month

Answers

Answer:

102,200 units

Explanation:

Equivalent units for conversion costs

Note that the weighted-average method in its process costing system is being used

Units Completed and transferred ( 102,000 x 100%)  102,000

Ending Work in Process (1,000 x 20%)                               200

Equivalent Units of Production                                     102,200

Conclusion

The equivalent units for conversion costs in the Assembly Department for the month is 102,200.

What document design strategy would improve the readability and comprehension of this passage?

Answers

We need to see the passage

The total cost​ (in dollars) of manufacturing x auto body frames is ​C(x)=60,000+400x. ​(A) Find the average cost per unit if 200 frames are produced. ​(B) Find the marginal average cost at a production level of 200 units. ​(C) Use the results from parts​ (A) and​ (B) to estimate the average cost per frame if 201 frames are produced.

Answers

Answer:

a) Average price per unit = 700

b) average marginal cost = -1.5 dollars/frame

c) For 201 frames are produced = $698.5

Explanation:

Given Data:

C(x) = 60000 + 400x

a) Average cost for 200 units:

Total Cost of 200 units will be:

C(200) = 60000 + 400(200)

C(200) = 140,000

Total Cost of 200 units = 140,000

Average price per unit = Total Cost / number of units

Average price per unit = 140,000/200

Average price per unit = 700

b) Marginal Average Cost:

We know that marginal cost = [tex]C^{'}[/tex](x)

And the average marginal cost = [tex]\frac{d}{dx}[/tex] [tex]\frac{C(x)}{x}[/tex]

So,

= the derivative of ([tex]\frac{60,000 + 400(x)}{x}[/tex])

= the derivative of ([tex]\frac{(60,000)}{x} + 400[/tex])

= [tex]\frac{-60,000}{x^{2} }[/tex] + 0

So,

average marginal cost = [tex]\frac{-60,000}{x^{2} }[/tex]

at x = 200 units

average marginal cost = [tex]\frac{-60,000}{200^{2} }[/tex]

average marginal cost = -1.5 dollars/frame

c) Average cost per frame if 201 frames are produced:

We already seen in the part b that, the average marginal cost is decreasing by 1.5 dollars /frame. So,

if 201 frames are produced the instead of 200 then the difference is of 1 frame and we discussed that average marginal cost of 1 frame is decreasing at 1.5 dollars per frame.

So,

As we know the average cost from part a = 700 dollars.

Therefore, for 201 item = 700 dollars -1.5 dollars

For 201 frames are produced = $698.5

Why can internet banks offer better interest rates and lower fees than tradition banks?

A.They value their customers more.
B.They have fewer expenses.
C.They make money in different ways.

Answers

C I think bro Ishtar

Select the correct answer. Which part of a speech contains the speaker’s arguments, ideas, examples, and proof? A. the title of the speech B. the body of the speech C. the introduction of the speech D. the conclusion of the speech

Answers

Answer:

Its in the body o

Explanation:

Answer:

it is b

Explanation:

took the test and got 100%

What are causes and effects of increasing marginal returns?

Answers

Answer:

the extra output or change in total product caused by adding one more unit of variable input. Increasing marginal returns: as long as each new worker contributes more to total output than the worker before, total output rises at an increasing rate.

Explanation:

Which of the following statements is true of Islam?

Answers

Answer:

Muslims believe that Islam is the complete and universal version of a primordial faith that was revealed many times before through prophets, including Adam, Abraham, Moses, and Jesus. Muslims consider the Quran in Arabic to be the unaltered and final revelation of God.

Explanation:

I didn't get your answer?

The truthful statement about Islam is that it is a faith without a recognized hierarchy.

What is Islam?

Islam is an Abrahamic monotheistic religion or sect that is primarily centered on the Quran, which Muslims believe to be the actual words of God (or Allah) as they were spoken to Muhammad, the major and last prophet of Islam.

It is the second-largest religion in the world after Christianity, with between 1 and 1.8 billion followers worldwide, or around one-fourth of the world's population.

Islam holds that God is a benevolent, all-knowing, and singular being who has guided mankind through a variety of prophets, revealed texts, and natural signs, with the Quran acting as the ultimate and all-encompassing revelation and Muhammad as the "Seal of the Prophets" (the last prophet of God).

Learn more about Islam, from:

brainly.com/question/2141953

#SPJ2

What is the expected return on a portfolio that will decline in value by 10% in a recession, will increase by 15% in normal times, and will increase by 20% during boom times? Each scenario has an equal likelihood of occurrence.

Answers

Answer:

8.34%

Explanation:

expected return of the stock = ∑(likeliness to occur of every economic state x expected return) = (1/3 x 20%) + (1/3 x 15%) - (1/3 x 10%) = 6.67% + 5% - 3.33% = 8.34%

The value of the expected return is equal to the sum of the individual returns times the percentage of likeliness to occur.

Conchita Cosmetics acquired 10% of the 200,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2014. On June 30, Martinez declared and paid a $75,000 cash dividend. On December 31, Martinez reported net income of $122,000 for the year. At December 31, the market price of Martinez Fashion was $15 per share. The securities are classified as available-for-sale. Situation 2 Monica, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles’s 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2014. On June 15, Seles declared and paid a cash dividend of $36,000. On December 31, Seles reported a net income of $85,000 for the year.

Answers

Answer:

1. 18-03

Dr Investment in AFS $2,60,000

Cr Cash $2,60,000

30-06

Dr Cash $7,500

Cr Dividend Revenue $7,500

31-12

Dr Securities Fair value Adjustment $40,000

Cr Unrealized Holding Gain $40,000

2. 01/01

Dr Investment in S Corp $81,000

Cr Cash $81,000

15/06

Dr Cash $10,800

Cr Investment in S Corp $10,800

31/12

Dr Investment in S Corp $25,500

Cr Revenue from Investment $25,500

Explanation:

1. Preparation of the journal entries

18-03

Dr Investment in AFS $2,60,000

(200000*10%*13)

Cr Cash $2,60,000

(Being to Record investment made)

30-06

Dr Cash $7,500

(75000*10%)

Cr Dividend Revenue $7,500

(Being to Record Dividend Earned)

31-12

Dr Securities Fair value Adjustment $40,000

Cr Unrealized Holding Gain $40,000

( 20000*2)

(Being To Record Investment at Fair Value )

2. Preparation of Journal Entries

01/01

Dr Investment in S Corp $81,000

(30000*30%*9)

Cr Cash $81,000

(Being to Record investment made)

15/06

Dr Cash $10,800

(36000*30%)

Cr Investment in S Corp $10,800

(Being To Record Dividend Earned)

31/12

Dr Investment in S Corp $25,500

(85000*30%)

Cr Revenue from Investment $25,500

(Being To Record Income earned)

College students often borrow money to attend school. Generally, the plan is to pay loans back through future earnings. In this way, capital markets and labor markets are intimately connected. Assume that the market for education and the market for college educated labor are perfectly competitive. Show what happens to the market for education, and the market for college educated labor if the government increases the number of very low interest loans.

who gains and who loses by this policy?

Producers of Schooling- gain or lose
college graduates - gain or lose
consumers of education (without loans)- gain or lose
Employers of college graduates- gain or lose

Answers

Answer: See Explanation

Explanation:

Based on the information provided in the question, the people who gain will be:

1. Producers of Schooling - Since the college students often borrow money to attend school, this ultimately means that there'll be an increase in the number of students who wants to go to college. This is beneficial to the producers of schooling as they'll get more students and make more revenue.

2. Employers of college graduates- Since the college students often borrow money to attend school, this ultimately means that there'll be an increase in the supply of labor. Since there is an increase, there will be a reduction in the wage rate as supply of labor will be more than the demand.

The losers will be:

1. College graduates - They are losers because they'll get a lower pay due to the rise in the number of people that'll graduate from college.

2. Consumers of education (without loans)- They're also losers as there'll be an increase in supply of labor and decrease in wage rate offered.

2.

a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers. a privately owned organization that serves its customers to make money so that it can survive. a group of people united through contractual or corporate ownership. a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit. a publicly owned organization that serves the general population.

Answers

Hope U get the answer I needed points

In your own life, what is important to you to “preserve, protect and/or defend”?

Answers

Answer:Um protect or to defend.

Explanation:

What is cost opportunity in firm

Answers

Answer:nah

Explanation:

Opportunity cost is the value of something when a particular course of action is chosen. The benefit or value that was given up can refer to decisions in your personal life, in a company, in the economy, in the environment, or on a governmental level. ...

Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $760,000 and $520,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 16,000 hours and 8000 hours, respectively. What is the predetermined overhead allocation rate

Answers

Answer:

the Predetermined overhead rate is $95 per machine hour

Explanation:

The computation of the predetermined overhead rate is shown below:

Predetermined overhead rate is

= (Estimated manufacturing overhead cost ÷ Estimated machine hours)

= ($760,000 ÷ 8000)

= $95 per machine hour

Hence, the Predetermined overhead rate is $95 per machine hour

A first saving account pays 5% compounded annually. A second saving account pays 5% compounded continuously. Which of the two investments is better in the long term?

Answers

The account that’s compounded continuously is the better investment long-term because you accrue interest on top of interest on a daily basis which grows exponentially.

Your friend Alice is a full-time college student, earned $4,000 working at the campus bookstore over two semesters last calendar year, and also got a part-time job as a cashier in February, earning $9,500. Alice knows that you have been learning about taxes in your personal finance lessons and asks you, “Do I need to file taxes this year? If I do, what is the process like?”

Answers

Single, under the age of 65 and not older or blind, you must file your taxes if: Unearned income was more than $1,050. Earned income was more than $12,000. Gross income was more than the larger of $1,050 or on earned income up to $11,650 plus $350.

Sorry, I can not answer the second part to the question sorry.  

In 2014, a drought in the Midwest raised grain prices, leading to a decline in the size of cattle herds. Ultimately, the price of ground beef rose from about $3 a pound to over $4 by 2015. Demonstrate graphically the effect of the drought on equilibrium price and quantity in the ground beef market.

Answers

Answer:

please check the attached image for a graphical representation

Explanation:

As a result of the drought, the supply of ground beef would fall. This would lead to a leftward shift of the demand curve. As a result equilibrium price would rise and equilibrium quantity would fall

The most important element of a business plan's financial plan is the cash budget, which shows the salary which the entrepreneur will earn. how much money is needed to start the business and keep it operating. how many units must be sold to recover start-up costs. the tangible assets owned by the firm. how many business units should be opened and the annual tax payment to be made.

Answers

Answer:

The correct answer is the second option: How much money is needed to start the business and keep it operating.  

Explanation:

To begin with, when we talk about a cash budget that is refered to a financial plan we are talking about the paper that helps the manager to establish how much money will be needed and that it will also show the flow of it in every period select by the person, commonly every month. Moreover, a cash budger is the most important part of a financial plan due to the fact that it will help the entrepreuner to have and idea of how the money is expended and from where it comes from as well so in that way he will understand better the business and its operations.

what is the significance of operation research in modern management?​

Answers

Answer:

Operations research is an important method that is used by modern management for solving complex problems under uncertain conditions. Operation research is used in business where the managers need to take risk since there are very few things are certain.

hope it helps!!

please mark as the brainliest!!

A company's master budget for October is to manufacture and sell 30,000 units for a total sales revenue of $270,000, total variable costs of $180,000, and total fixed costs of $24,000. The company actually manufactured and sold 32,000 units and generated $45,000 of operating income in October. The flexible-budget operating income in October was:

Answers

Answer:

$72,000

Explanation:

The Starting point for flexing a Budget  is to determine the Standard unit Selling Price and unit Cost Prices, then apply the amounts to the actual activity/production as shown below ;

Flexible-budget for the month of October

Sales ($270,000/30,000 x  32,000)                               $288,000

Less Variable Costs ($180,000/30,000 x  32,000)       ($192,000)

Contribution                                                                        $96,000

Less Fixed Costs                                                               ($24,000)

Operating Income                                                               $72,000

If the equilibrium price for tickets to a a Lady Antebellum concert is $100 each and they sell them for $85,

Answers

Answer: you save $15

Explanation: 100-85 is 15 and the tickets are selling for $85 instead of original price

Explanation:

The cost of an items is 200. what will be the cost of 50 such. write a simple program

Space Tech Inc. had the following expenditures this year related to a new product it was developing: Research cost for the new design - $2,200,000 Development cost of the new product (after technological feasibility and product viability is established) - $800,000 Legal and filing fees for a patent for the new design - $100,000 The product was patented before the end of the year. Required: Under GAAP, how much is Space Tech required to expense with respect to the project

Answers

Answer:

$2,200,000

Explanation:

all research and development costs incurred before a new product or service is technological feasible must be expensed. The costs incurred afterwards may be capitalized.

Expensed costs = $2,200,000

Capitalized costs = $800,000 + $100,000 = $900,000

In open economies, A. countries can save only by acquiring foreign wealth. B. investment always refers to the domestic stock market. C. unlike the case of a closed economy, saving and investment are not necessarily equal. D. saving and investment are necessarily equal contrary to the case of a closed economy. E. as in a closed economy, saving and investment are not necessarily equal.

Answers

Answer:

C. unlike the case of a closed economy, saving and investment are not necessarily equal

Explanation:

An open economy occurs when international businesses in addition to domestic ones engage in trading activities.

Exchanges that occur may be for management expertise, goods and services, or technology.

In contrast a closed economy is one where there is no buying or selling with international businesses.

In an open economy people can put their savings in investment outside of the country. So domestic investment is usually not equal to savings.

However in a closed economy. All the savings are invested locally, so investment is usually equal to savings

Explain in detail the difference between the United States government's budget deficit versus the national debt.

Answers

Answer:

The debt is the total the U.S. government owes—the sums it borrowed to cover last year's deficit and all the deficits in years past.

Explanation:

Other Questions
Rudolph Takes 12 minutes to run 6 times around a 400 meter track assuming he runs at a constant speed how long does he take to run 1 kilometer Which of the following was a cause of the Peloponnesian Warbetween Sparta and Athens? Which number is NOT in the solution set of the inequality x > 10?A. 5B. 15C. 20D. 25 Line N passes through the points (-1, 4) and (-1, -4). 3 yd4 ydWhat is the length of the hypotenuse?yards Which case ruled against segregation at the District Court level? Plessy v. Ferguson Brown v. Board of Education Delgado v. Bastrop ISD Sweatt v. Painter Why did the Federalist Party lose support after the War of 1812?It had opposed the war.It had been right about the impact on trade.It had sided with Great Britain.It had worked with American Indians. Which polynomial is prime?X4 + 3x2 - y2 - 3X4 - 3x2 x2 + 3 3x2 + x - 6x-23x2 + x - 6x + 3 Hey Friends...Please answer All this questions correctly...If your answer is right then I'll mark your answer as brainliest..And if It's wrong then that answer will be reported!! Noah wants to take a picture of a beachfront. He wants to make sure two palm trees located at points A and B are just inside the edges of the photograph. He walks out on a walkway that goes over the ocean to get the shot. Point A is 90 feet from the entrance of the walkway, and point B is 40 feet from the entrance. If the walkway is perpendicular to AB, and Noahs camera has a viewing angle of 90, at what distance down the walkway should Noah stop to take his photograph? On a separate sheet of paper, draw a diagram to model the situation. The amount of money Elise earned in tips per day for 6 days is listed below. $75, $97, $360, $84, $119, $100. Calculate the mean and median amount earned 6.93x10^-10 g in picogramsThanks, Ill mark the brainliest GIVING BRAINLIESTWhat ended the Nullification Crisis?(20 Points)a. Congressman Henry Clay worked out a compromise that lowered the tariff 15% over 10 years.b. President Jackson led the army into South Carolina and enforced the tariff collection.c. South Carolina seceded from the Union.d. The Supreme Court ruled the Tariff of Abominations to be unconstitutional. Economics NOT BusinessAccording to the graph below, what condition would be created if the price was set higher than equilibrium, say at $4?a. the market would be at equilibriumb. a surplus would be createdc. a shortage would be createdd. there would be no change in consumer or producer activity i need help with this A television is priced at $298.50. There is a 6% sales tax rate. What is the cost of the television, including tax? Find the area of the figure shown below and choose the appropriate result.4 cm6 cm5 cm3 cm -6+(-1)=.................. What are the coordinates of point A?(8, 6)(6, 8)(5, 7)(7, 5) marking brainiest The expression 12.5x can be used to determine the total amount of wages earned after working xhours at a rate of $12.50 per hour. What is the total amount of wages earned by someone whoworks 40 hours?