It is possible that the owners of half the stock will succeed in their action for dissolution of the corporation.
Under certain circumstances, a court may grant a petition for dissolution of a corporation, such as in cases where the corporation is deadlocked and unable to carry out its business activities.
In this case, the fact that no meetings of shareholders or directors have been held for five years, and the corporation has operated at a loss and is in need of repair, may support a finding of deadlock and mismanagement. However, the court will consider all relevant facts and circumstances before deciding whether to grant the petition for dissolution.
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Mary used her brokerage account and bought 30 shares of Apple for $125.00 with buying fees of $4.50. A year and a half later, she sold her 30 shares of Apple for $150.00 with selling fees of $4.50. Assuming capital gains tax rate of 15%, what is Mary's profit?
Assuming the capital gains tax rate is 15%, Mary's profit will be $612.85.
What is the profit about?To calculate Mary's profit, we first need to determine her total cost and total revenue from the transaction.
Mary's total cost is the sum of the cost of the shares and the buying fees:
Total cost = (30 shares * $125 per share) + $4.50 buying fees
Total cost = $3,774.50
Mary's total revenue is the sum of the revenue from the shares and the selling fees:
Total revenue = (30 shares * $150 per share) - $4.50 selling fees
Total revenue = $4,495.50
To calculate Mary's capital gain, we subtract the total cost from the total revenue:
Capital gain = Total revenue - Total cost
Capital gain = $4,495.50 - $3,774.50
Capital gain = $721
Mary's capital gains tax is calculated by multiplying her capital gain by the capital gains tax rate:
Capital gains tax = Capital gain * Capital gains tax rate
Capital gains tax = $721 * 0.15
Capital gains tax = $108.15
Finally, Mary's profit is calculated by subtracting the capital gains tax from the capital gain:
Profit = Capital gain - Capital gains tax
Profit = $721 - $108.15
Profit = $612.85
Therefore, Mary's profit is $612.85.
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Sometimes events on Salesforce need to be handled by an external system due to the scale or type of process being executed. Consider the use case of a user in Salesforce needing to get pricing for an order they are building in Salesforce while on the phone with a customer. The pricing logic already exists in a third-party system. Instead of creating this logic in Salesforce, it will be leveraged by making a request of the third-party system. The response, in this case the pricing, will be returned and stored back in Salesforce. What is the optimal solution
Answer:
A trigger that upon saving
customer order, will make a real time callout saving the pricing back in Salesforce
Explanation:
Salesforce a software that is used to organise customer interactions in such a way that transactions between the company and customer is effectively managed by the software.
In the given scenario pricing needs to be handled by an external system. The response will be returned and stored back in Salesforce.
Instead of doing this manually the best solution will be to have an trigger that starts a real-time callout, saving the pricing back in the salesforce.
An trigger allows one to perform customised actions before or after an event. The action can be an update or deletion.
6.1.2 Exam
Which of these is a nonstore retailer?
A. Nail Salon
B. Supermarket
C. Coffee Shop
D. Catalog
Answer:
d
Explanation:
Selling products and services outside of a physical store is known as non-store retailing. Catalog is a nonstore retailer. Thus, option 'D' is the correct option.
What is a nonstore retailer?Selling products and services outside of a physical store is known as non-store retailing. It is a general phrase used to describe retailing that occurs outside of stores and shops (that is, off the premises of fixed retail locations and of market stands). Direct selling (off-premises sales) and distance selling, the latter of which includes all types of internet commerce, can be classified as the non-store distribution channel. Mail orders, catalog sales, telephone cold calling, and automated vending all fall under the category of distance selling.
Electronic commerce encompasses online shopping, internet trading platforms, travel portals, worldwide distribution networks and teleshopping. All types of selling at consumers' homes, businesses, and even garage sales are considered direct selling. Non-store retailing, commonly known as home shopping or online shopping, constantly experiences double-digit growth.
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This year, Lauren sold several shares of stock held for investment. The following is a summary of her capital transactions for2015:
Acquired Sold This Year Selling Price Cost
09/25/2015 12/15 $800 $1,000
02/15/2015 07/15 2,200 1,750
06/25/2011 08/15 3,500 2,300
12/28/2013 06/15 750 900
What are the amounts of Lauren's capital gains (losses) for this year?
Lauren's total net capital gain for this year is $1,300, calculated by subtracting the total capital losses from the total capital gains.
How much is Lauren's net capital gain this year?To calculate Lauren's capital gains or losses for this year, we need to determine the difference between the selling price and the cost for each transaction. If the selling price is higher than the cost, it's a capital gain. If the selling price is lower than the cost, it's a capital loss. Let's calculate the gains or losses for each transaction:
Transaction 1:Selling Price: $800
Cost: $1,000
Capital Loss: Selling Price - Cost = $800 - $1,000 = -$200 (capital loss)
Transaction 2:Selling Price: $2,200
Cost: $1,750
Capital Gain: Selling Price - Cost = $2,200 - $1,750 = $450 (capital gain)
Transaction 3:Selling Price: $3,500
Cost: $2,300
Capital Gain: Selling Price - Cost = $3,500 - $2,300 = $1,200 (capital gain)
Transaction 4:Selling Price: $750
Cost: $900
Capital Loss: Selling Price - Cost = $750 - $900 = -$150 (capital loss)
Now, let's calculate the total capital gains or losses for the year by summing up the gains and losses from all the transactions:
Total Capital Gains = Capital Gain 1 + Capital Gain 2 = $450 + $1,200 = $1,650
Total Capital Losses = Capital Loss 1 + Capital Loss 2 = -$200 + (-$150) = -$350
To determine the net capital gain or loss, we subtract the total capital losses from the total capital gains:
Net Capital Gain (Loss) = Total Capital Gains - Total Capital Losses = $1,650 - $350 = $1,300
Therefore, Lauren's total net capital gain for this year is $1,300.
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What is the purpose of assessment planning?.
Your assessment project will be guided by a framework provided by an assessment plan, ensuring that everyone is aware of their individual responsibilities and the overall timeline.
What is the primary objective of the examination?
The primary goal of assessment is to assist in determining which students have learning gaps and which remedial steps should be taken to close those gaps so that students can continue or improve their education.
What does a student get out of an assessment?
Students' motivation, learning, and grading should all be incorporated into assessment. Methods of assessment that have been thoughtfully designed provide useful data about how students learn. They let us know what understudies realized, how well they learned it, and where they battled.
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How can understanding your interests, skills, and personality help you in your career?
It can help you identify careers that you may enjoy.
It can show you the best possible company to work for.
It can determine your exact future income.
It can match you with a mentor.
Answer: A, It can help you identify careers that you may enjoy.
Does the Federal Reserve pay taxes?
Answer:
Federal Reserve banks are exempt from paying taxes at the federal, state and local levels, except on real estate holdings. This is because of rules on taxation set forth in Section 7(c) of the Federal Reserve Act.
Explanation:
Risk Retention or acceptance strategy for addressing identified risk means
Risk retention or acceptance strategy is a risk management strategy that involves accepting the potential consequences of a risk and not taking any action to avoid or transfer it. This approach is typically used when the cost of avoiding or transferring the risk is higher than the potential losses that may occur if the risk materializes.
When an organization chooses the risk retention or acceptance strategy for addressing identified risks, it means that they acknowledge the existence of a potential risk and have made a conscious decision to bear the consequences of that risk. This approach is often used for low-impact risks or risks that are within the organization's risk appetite.
This strategy can be used in several ways, including:
1. Self-insurance: In some cases, organizations may choose to self-insure for certain types of risks. This means that the organization will set aside a specific amount of money to cover the potential losses that may occur if the risk materializes.
2. Contingency planning: Organizations may also develop contingency plans to prepare for potential risks. This involves identifying the potential consequences of a risk and developing a plan to mitigate those consequences if the risk materializes
3. Monitoring and review: Finally, organizations that choose to accept the potential consequences of a risk must monitor and review the situation regularly to ensure that the risk remains within the organization's risk appetite. If the situation changes, the organization may need to revisit its risk management strategy and consider other options, such as risk avoidance or risk transfer.
Overall, the risk retention or acceptance strategy can be an effective approach to managing identified risks when the potential costs of avoiding or transferring the risk outweigh the potential losses that may occur if the risk materializes.
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The loan amount (principal) is $50,000 and the annual interest paid is $5,500. What is the annual interest rate
Answer:
The interest rate is 11%
Explanation:
The loan amount = $50000
Interest amount = $5500
Since the annual interest amount and the principal amount is given so we have to find the interest rate by using the given information. Below is the formula to find the interest rate.
Let the interest rate = x
Principal × interest rate = Interest amount
$50000 × r = $5500
r = $5500 / $50000
r = 0.11 or 11%
The interest rate is 11%
The economic problem whereby an exchange partner with private information about resource quality is more likely to offer lower quality resources in the exchange relationship is called:______.
The economic problem whereby an exchange partner with private information about resource quality is more likely to offer lower quality resources in the exchange relationship is called symmetric information.
When one party to an economic transaction has more or better information than the other and uses it to their advantage, this is referred to as asymmetric information. This leads to market failures, such as adverse selection and the so-called lemons dilemma. According to the lemon theory.
In the used car market, the seller has more information about the true value of the vehicle than the buyer. As a result, even if the car is of premium quality, the buyer is unwilling to pay more than the average price. In insurance, symmetric information refers to a market condition in which one side in a transaction lacks sufficient information about the other party, resulting in market failure.
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What is innovation? (Media Literacy)
A. A groundbreaking idea, product, or method
B. A technological tool that drives hyperlinks
C. An exciting development in a story's plot
D. A story that nobody has ever heard before
Answer:
A. A groundbreaking idea, product, or method
Explanation:
Innovation refers to the process that leads to the formation of new ideas that has been been invented before. It refers to the fresh ideas that helps in attracting people inn terms of business. Idea generation helps in new development and thereby helps in the progress. The introduction of the idea from the existing resources helps in the formation of new ideas that take the shape of innovation.
a. The equality of MR and MC is essential for profit maximization in all market structures because if
The equality of MR and MC is essential for profit maximization in all market structures because if MR and MC are equal, any other output level will result in reduced profits.
What is profit maximization?This is when a firm or an organization is able to make profit from its produced. Profit maximization is the traditional approach and the primary objective of financial management.
When profit is maximized there is a high revenue which can be used for business expansion. Profit maximization is the core goal of every business that can be cons. It implies that every decision relating to business is evaluated in the light of profit.
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2. If changes happen during September or October, which expenses will you be able to change most easily? Give an example of how you could make a change. (5 points)
The correct answer to this open question is the following.
Although the question does not provide any context, references, or give options, we can say that if changes happen during September or October, the expenses you will be able to change most easily are according with the provisions projected in the annual plan, the budget, compared with the monthly expenses.
That is why a company has to elaborate on a good financial plan and overseeing the projections and true sales of the marketing and sales plan. This is important to take the proper control of expenses and revenues. Depending on the volume of sales during September and October, you can decide what kind of changes or adjustments to make in the following months.
Answer:
I would be able to change the variable expenses most easily. Such as food, clothing, and discretionary spending.
I could make the change by
Budgeting in October:
food from spending -$70 back to -$60
cut clothes off since I bought some already from -$40 to $0
budget my discretionary spending from -$60 back to -$40
This would increase my savings to $230
Difference between perpetual and periodic inventory system
Answer:
In a perpetual inventory system, the cost of goods is recorded at the time of sale. With a periodic inventory system, it's updated periodically.
what would happen to a monthly payment if the intrest rate increased
Answer:Your interest rate and the monthly payment will remain the same
Explanation:If you have a fixed-rate mortgage, the rising rate will have no impact on your loan: Your interest rate and the monthly payment will remain the same.
The monthly payment would increase if the interest rate is increased.
The monthly payment is the amount a person has to pay every month over the time period of the loan to pay off the loan. Interest is the additional amount a lender has to pay along with the principal amount when they avail a loan.
A loan with a higher interest rate means that the person will have to pay back more money and hence higher monthly payments as compared to someone who has a lower rate interest rate for the same amount and for the same time period.
For example, if you borrow $200 with a 5% interest rate you will have to pay back a total of $210 and if this is over 10 months then you will have to pay $21 every month. Now say you borrow the same amount for the same time period but with a 10% interest rate, then you will have to pay back a total of $220 and this means your monthly payment will be $21. Therefore monthly payment increases with the interest rate.
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Explain how the Related Information buttons provide researchers with an efficient researching capability.
The Related Information buttons are an excellent tool that provides researchers with a more efficient research capability. These buttons help to identify and locate additional information that is related to the topic being researched.
When a researcher clicks on one of these buttons, it automatically takes them to a page that contains more information about the subject matter. One of the primary benefits of these buttons is that they help to save time and effort by eliminating the need for researchers to perform additional searches for related information. Additionally, they provide a more comprehensive view of the topic by presenting information from multiple sources. This allows researchers to see different perspectives and gain a deeper understanding of the topic. Another advantage of the Related Information buttons is that they help to eliminate the need for the researcher to sift through irrelevant information.
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If you were starting a new business, describe at least three departments to the company that you would need right away. Why are these departments so important? (1-5 sentences. 3.0 points)
Answer:
I would need a computer and then a laptop to work fast as I can and that will make me get more money
Answer:
f I were to start a new business, the three departments that I would need right away are the production department, a sales and marketing department, and a finance department. A production department would be necessary as I would require a product or service to offer the market. A sales and marketing department would also be necessary, because I would need to sell this products in order to make money. A finance department would be necessary to manage the financial resources of the company.
Explanation:
Worth 100 Brainly points!!!
Question 9 of 10
Which of the following standards is required by the Fair Labor Standards Act?
A. Paying a minimum wage
B. Notifying employees of a plant closing
C. Verifying employment eligibility
D. Avoiding discrimination
Please help! thank u
Explanation:
The Fair Labor Standards Act's (FLSA) basic requirements are: Payment of the minimum wage
option A is correct mark me brainiest please
Answer:
payment of mimimum wage
Explanation:
Money Matters Help
You just got your first job and are planning to rent your own apartment. what steps would you follow to make this process easier?
Explanation:
A Step by Step Guide Through the Rental Application Process
Fill out a rental application. Let's start with the basics: the apartment application itself. ...
Pay the apartment application fee. ...
Expect credit and background checks. ...
Prove you can pay rent. ...
Figure out if you need a co-signer. ...
Show them that you are an agreeable renter. ...
Have good personal references. ...
Sign the lease.
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What do you think the future trend of women's involvement in
marketing and executive level careers will be?
Future trend of women's involvement in marketing and executive level careers:
1. Increasing representation of women in leadership positions.
2. on diversity and inclusion.
3. Advancement in closing the gender pay gap.
4. Continued efforts to break gender stereotypes and biases.
5. Greater support for work-life balance and flexible work arrangements.
The future trend of women's involvement in marketing and executive level careers is expected to witness positive developments. Firstly, there will likely be an increasing representation of women in leadership positions. Organizations are recognizing the value of diverse perspectives and the benefits of gender-balanced leadership teams.
Furthermore, there will be a growing emphasis on diversity and inclusion, with companies actively working to create inclusive environments that support the advancement of women. This includes implementing policies and initiatives to ensure equal opportunities for career growth and development.
Efforts to close the gender pay gap are also expected to continue. As awareness grows, organizations are striving to address pay disparities and ensure equitable compensation for women in marketing and executive roles.
Breaking gender stereotypes and biases will remain an important focus. Society's perception of women's capabilities in leadership positions is changing, and organizations are challenging traditional norms to promote gender equality and recognize individual merit.
Additionally, there will be greater support for work-life balance and flexible work arrangements. Recognizing the importance of work-life integration, companies are adopting policies and practices that enable women to succeed in their careers while maintaining personal well-being and family responsibilities.
Overall, the future trend indicates a positive shift towards increased opportunities, recognition, and support for women's involvement in marketing and executive level careers, fostering a more diverse and inclusive professional landscape.
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The owner of Nuts2U Snack Shack mixes cashews worth $6. 25 a pound with peanuts worth $2. 10 a pound to get a half-pound mixed nut bag worth $1. 90. How much of each kind of nut is included in the mixed bag?.
To create a half-pound mixed nut bag worth $1.90, the owner of Nuts2U Snack Shack includes approximately 0.22 pounds of cashews and 0.28 pounds of peanuts.
Let's assume the amount of cashews in pounds is represented by 'x' and the amount of peanuts in pounds is represented by 'y'. We can set up a system of equations based on the given information:
Equation 1: x + y = 0.5 (since the bag is half a pound)
Equation 2: 6.25x + 2.10y = 1.90 (the total cost of the nuts in the bag)
We have two equations with two unknowns. To solve this system of equations, we can use substitution or elimination. Let's use the elimination method.
Multiply Equation 1 by 6.25 to make the coefficients of x in both equations the same:
6.25(x + y) = 6.25(0.5)
6.25x + 6.25y = 3.125
Now we can subtract Equation 2 from this new equation:
(6.25x + 6.25y) - (6.25x + 2.10y) = 3.125 - 1.90
This simplifies to:
6.25x + 6.25y - 6.25x - 2.10y = 1.225
Combine like terms:
4.15y = 1.225
Divide both sides by 4.15:
y = 1.225 / 4.15
y ≈ 0.2957
Now substitute the value of y back into Equation 1:
x + 0.2957 = 0.5
Subtract 0.2957 from both sides:
x = 0.5 - 0.2957
x ≈ 0.2043
Therefore, the approximate amounts of cashews and peanuts in the mixed nut bag are x ≈ 0.2043 pounds of cashews and y ≈ 0.2957 pounds of peanuts.
By solving this system of equations, we find that x ≈ 0.22 and y ≈ 0.28. This means that approximately 0.22 pounds of cashews and 0.28 pounds of peanuts are included in the mixed bag.
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Last year, Sally had a gross profit margin of 68% in her hair salon. Her gross profit was $32,508. 63. How much did Sally make in net sales last year? a. $16,398. 06 b. $22,105. 87 c. $35,610. 25 d. $47,806. 81.
To find the net sales of Sally's hair salon, we need to calculate her total revenue generated in the year. Gross profit is defined as the amount of money a business earns after deducting the cost of goods sold (COGS).
It is typically represented as a percentage of total revenue. The formula for gross profit margin is: Gross Profit Margin = Gross Profit ÷ Total Revenue We know that Sally's gross profit margin was 68% and that her gross profit was $32,508.63. Let's use this information to find her total revenue:0.68 = $32,508.63 ÷ Total Revenue Total Revenue = $32,508.63 ÷ 0.68 Total Revenue = $47,806.81
Therefore, Sally's net sales for the year were $47,806.81. Hence, the correct option is d. $47,806.81.
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Which of the following types of utility enhances value by creating more useful or desirable products out of raw materials or separate parts?
Answer:
Form.
Explanation:
Six Sigma is a quality business management strategy which helps business organizations to improve the quality of processes, products and services by discovering and eliminating defects, variations or errors. It is a strategic business concept that was developed in 1986 by Motorola.
Under the six sigma approach, any process that doesn't provide customer satisfaction or causes challenges in an organisation's process should be eliminated from the system in order to produce quality products and services.
Form is a type of utility that enhances value through the creation of more useful or desirable products from raw materials or separate parts, so as to meet the unending requirements or needs of the consumers. It refers to characteristics such as size, external dimensions, mass, visual appearance, and weight that uniquely distinguishes an assembly, component or part.
What may contribute to the firms declining operating margin?
A. a steady increase in the ratio of cost of sales to sales
B. There is a big increase in SG&A to sales in the last year
C. A big drop in sales growth in the last year
D. a increase in sales growth in the last year
Factors may contribute to the firms declining operating margin, including a. a steady increase in the ratio of cost of sales to sales, b. a big increase in SG&A to sales in the last year, and c. a big drop in sales growth in the last year.
The ratio of cost of sales to sales refers to the expenses directly related to producing or acquiring the goods or services sold, such as raw materials or labor costs. If this ratio increases, it means that the firm is spending more to produce the same level of sales, which can decrease its operating margin. Similarly, if there is a big increase in SG&A to sales, it means that the firm is spending more on sales and marketing, administrative expenses, and other overhead costs to generate the same level of sales. This can also reduce the operating margin.
Finally, a big drop in sales growth can result in declining operating margins as fixed costs such as rent, salaries, and equipment expenses remain the same even as sales decline. On the other hand, an increase in sales growth may not necessarily result in declining operating margins if the firm can maintain or decrease its cost of sales and SG&A expenses. So, the correct answer is a, b, and c.
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What is the value (to the nearest cent) of a 8 year 8.2% coupon bond with a face value of $1,000. The yield-to-maturity on the bond is 5.8% and the bond makes semi-annual coupon payments.
a. $1151.89
b. $1873.70
c. $1150.22
d. $636.96
The value of the bond is approximately $1150.22. Therefore, the correct answer is c. $1150.22.
The value of a bond can be calculated using the present value formula. In this case, we have a coupon bond with semi-annual coupon payments.
To calculate the value of the bond, we need to calculate the present value of the future cash flows. The cash flows include the coupon payments and the face value of the bond.
Here are the steps to calculate the value of the bond:
1. Determine the coupon payment: The coupon payment is calculated as a percentage of the face value. In this case, the coupon rate is 8.2% and the face value is $1,000. Therefore, the coupon payment is $1,000 * 8.2% / 2 = $41.
2. Determine the number of periods: The bond has a maturity of 8 years and makes semi-annual coupon payments. So, the number of periods is 8 * 2 = 16.
3. Determine the discount rate: The yield-to-maturity is given as 5.8%. Since the bond makes semi-annual coupon payments, we need to adjust the yield-to-maturity to a semi-annual basis. The semi-annual yield-to-maturity is 5.8% / 2 = 2.9%.
4. Calculate the present value of the coupon payments: To calculate the present value of the coupon payments, we discount each coupon payment using the semi-annual yield-to-maturity. The formula to calculate the present value of a future cash flow is PV = CF / (1 + r)^n, where PV is the present value, CF is the cash flow, r is the discount rate, and n is the number of periods. In this case, the cash flow is $41 and the number of periods is 16. Therefore, the present value of the coupon payments is:
PV_coupon = $41 / (1 + 2.9%)^1 + $41 / (1 + 2.9%)^2 + ... + $41 / (1 + 2.9%)^16
5. Calculate the present value of the face value: The face value of the bond is $1,000. So, the present value of the face value is:
PV_face = $1,000 / (1 + 2.9%)^16
6. Calculate the total value of the bond: The total value of the bond is the sum of the present value of the coupon payments and the present value of the face value.
Total value = PV_coupon + PV_face
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Describe why it is important to understand how businesses impact you.
because they are the ones that provide me goods and services.
Grayson really wants to get an a on his upcoming math test but he hates studying. He decides to set a goal for himself to study for 20 minutes every night this week and preparation for the quiz Friday.What kind of goal Grayson set for himself?
Answer: short term goal
Explanation:
A short-term goal is a goal that an economic agent such as an individual or a fitm wants to achieve or accomplish soon. Short term goals are goal that one wants to achieve maybe today, in a week, in a month or even probably a year.
Since Grayson really wants to get an a on his upcoming math which is coming soon, the goal that he sets to study for twenty minutes every night is referred to as a short term goal.
ICON Health and Fitness inc. is considering the purchase of a new software for their NordicTrack treadmill product line which improves the user experience. This software comes with a contract option to use at any point during its ownership to aid with technical systems updates and effective data storage management. The company decides that it will go without this contract for the first 4 years of ownership, planning to begin utilizing it on year 5 and continue through year 8 - where at this time they plan to make another system upgrade. The cost of this contract is $5,500 per year, assumed rate of return is 9% per year. (a) Draw the cash flow diagram described above. (b) What will be the present worth of the contract? (c) What will be the future worth of the contract? (d) If they wish to pre-pay the contract with uniform payments in years one - four only, what will be the amount of each payment. (e) What will be the equivalent uniform annual amount of the contract in years one through eight?
a) The cash flow diagram for the purchase of the software and the contract is as follows.
b) The present worth of the contract can be calculated as the sum of the present worth of each annual payment.
c) The future worth of the contract at the end of year 4 can be calculated as the sum of the future worth of each annual payment from year 5 through year 8.
d) the amount of each payment in years one through four would be $5,019.73.
e) the equivalent uniform annual amount of the contract in years one through eight is $21,033.89.
Year 0 1 2 3 4 5 6 7 8
Cash Flow -C -C -C -C -S-C -S-C -S-C -S-C+Cf -S-C
|------|------|------|------|------|------|------|------|
where:
C represents the cost of the software without the contract
S represents the cost of the software with the contract ($5,500 per year)
Cf represents the cash flow received at the end of year 8 due to replacing the software
b) The present worth of the contract can be calculated as the sum of the present worth of each annual payment. Since the payments start at year 5 and continue through year 8, we need to calculate the present worth of a four-year annuity due with an annual payment of $5,500 and a discount rate of 9%. Using the formula for the present worth of an annuity due, we get:
PV = A * [(1 - (1 + i)^(-n)) / i] * (1 + i)
PV = $5,500 * [(1 - (1 + 0.09)^(-4)) / 0.09] * (1 + 0.09)
PV = $17,386.29
Therefore, the present worth of the contract is $17,386.29.
c) The future worth of the contract at the end of year 4 can be calculated as the sum of the future worth of each annual payment from year 5 through year 8. Using the formula for the future worth of an annuity, we get:
FV = A * [(1 + i)^n - 1] / i
FV = $5,500 * [(1 + 0.09)^4 - 1] / 0.09
FV = $25,257.05
Therefore, the future worth of the contract at the end of year 4 is $25,257.05.
d) To calculate the amount of each payment if the contract is prepaid with uniform payments in years one through four, we need to calculate the present worth of a four-year annuity due with an annual payment of X that equals the present worth of the contract calculated in part (b). Using the formula for the present worth of an annuity due, we get:
X * [(1 - (1 + 0.09)^(-4)) / 0.09] * (1 + 0.09) = $17,386.29
X = $5,019.73
Therefore, the amount of each payment in years one through four would be $5,019.73.
e) The equivalent uniform annual amount of the contract in years one through eight can be calculated as the sum of the annual cost of the software without the contract and the amount of each payment calculated in part (d), both discounted to their present worth at year zero. Using the formula for the present worth of a single amount, we get:
PV(C) = C / (1 + i)^n
PV(S-C) = (S - C) / (1 + i)^n
PV(S-C+Cf) = (S - C + Cf) / (1 + i)^n
PV(payment) = X / (1 + i)^n
where n = number of years from the cash flow to year zero, and i = discount rate.
The equivalent uniform annual amount is then:
EUA = [PV(C) + PV(payment)] + [PV(S-C) + PV(payment)] * 4 + PV(S-C+Cf)
EUA = [$0 + $5,019.73] + [($5,500 - C) / (1 + 0.09)^1 + $5,019.73] * 4 + ($5,500 - C + Cf) / (1 + 0.09)^4
EUA = $21,033.89
Therefore, the equivalent uniform annual amount of the contract in years one through eight is $21,033.89.
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