Prepaid insurance is reported on the balance sheet as a current asset.
What are current assets?All assets possessed by the company that can be turned into cash within a year are recorded in the Current Assets account, which is a line item on the balance sheet under the Assets heading. Current assets are items whose value is shown in the Current Assets account.
Cash, cash equivalents, receivables, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets are examples of current assets. Current Accounts are another name for current assets.
Current Asset Types
Numerous assets can be regarded as current by numerous businesses across all industries. These sub-accounts are typically how most sectors organize their current assets; however, you might see others:
1. Currency and its Equivalents
2. Trading Securities
3. Receivables Accounts
4. Inventory
5. Prepaid obligations and expenses
6. Alternative Quick-Term Investments
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donovan company projects sales for the year 2019 to be $32,000,000. for the past 5 years, donovan’s gross profit margin has averaged 45%. what amount should donovan company project for gross profit for 2019?
Answer:
$17,600,000 I took this test and this is it!
In the context of making a change in clinical practice in an organization, what is a stakeholder?.
In the context of making a change in clinical practice in an organization. A stakeholder is a person whose work will be affected by the change of practice.
A party with an interest in a company and the capacity to influence or be impacted by it is referred to as a stakeholder. The principal stakeholders in a typical corporation are its investors, employees, clients, and suppliers.
There are several reasons why stakeholders are important. They are important to internal stakeholders since the company's operations depend on their ability to work together to achieve the company's goals.
External stakeholders, on the other hand, might have a tangential effect on the business. Customers, suppliers, and governments all have the power to change their buying habits as well as how their products are produced and distributed. It goes without saying that maintaining relationships with internal and external stakeholders is the key to a company's long-term success.
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Establishing Credibility as a Presenter
One of your first presentation strategies should be to establish credibility. Without appearing self-serving, find ways to increase your perceived credibility. Use the presentation to show your thorough understanding of a business issue. Frame your ideas in ways that show clear benefits to your company, its employees, and its stakeholders. In every way, display honesty and openness.
During the presentation, you establish your competence by showing that you know the content well. You show your caring by connecting emotionally with audience members and adapting to their needs. You show your character by being open and honest. After your presentation, following up as appropriate with audience members shows your caring and character as well. Some audience members may raise issues for you to look into or ask for additional information. Comply with these requests promptly and you will establish a reputation for responsiveness.
In this exercise, you will evaluate how your actions and statements build your credibility in terms of competence, caring, and character.
Read the case below and answer the questions that follow.
You are a marketing specialist at a media company. Over the past few years, you have been researching how TV viewers use mobile phones and other devices while watching TV. You have found that viewers increasingly expect to engage via mobile devices with TV shows and their audiences while watching TV.
About one month ago, you and your colleagues gave a presentation to executives at your company regarding some of your survey results. The executive team members were generally impressed with the information, but they also seemed skeptical that your company needed to make any major changes. These executives made various statements referring to using mobile devices while watching TV as "largely a fad" or simply "non-monetizing." They also expressed concern about making major changes to cater to the youngest viewers (under 25 years old), who they feel are not their most important demographic. However, they were impressed with your presentation enough that they wanted you to dig deeper into the data and come up with some recommendations.
After a month of deeper analysis of your data, you've found even stronger evidence that viewers under 40 use their mobile devices frequently while watching TV. You thought this data helped bolster your argument that younger TV viewers expect an interactive experience while watching TV programs—using mobile devices to interact with TV hosts, actors, and other viewers; participate in contests and games; and interact in other creative ways with the programming.
With more and more TV viewers recording shows and watching commercial-free later, you thought that adopting an interactive approach to many programs could counteract this trend and get viewers excited about watching programs live. In fact, you think now is a great opportunity to develop a new business model that embraces interactive programming.
Now, you've returned to make a presentation to this same group of senior vice presidents (SVPs): Katie O'Harrah, SVP of marketing; Jake Ecksberg, SVP of programming; Sam Clawson, SVP of interactive; Marco Feinstein, SVP of communications; and Peter Orwell, SVP of business development. You know most of these executives are skeptical of major changes to the current business model, but you also expect them to listen objectively to your views. You will recommend that the company aggressively pursues programming with an interactive component. In particular, you will suggest pilot-testing interactive features for three shows that are most popular with your 31-to-40-year-old demographic.
References
Case AnalysisDifficulty: 2 MediumLearning Objective: 15-01 Describe how presentation delivery impacts your credibility.
Which of the following statements is most likely to raise your credibility through competence?
"We've provided the original data from the survey on the corporate intranet so you can access it yourselves."
"I do think we should let our creative teams worry about that."
"In addition to these survey results, we've found from many sources—in our viewer labs, with focus group research, and with interviews of dozens of industry experts—that viewers expect more interactive TV."
"We've done all of this research to help us gain a competitive advantage—to gain insights about where the market is going so that we can focus our efforts in the right direction."
References
Multiple ChoiceDifficulty: 2 MediumLearning Objective: 15-01 Describe how presentation delivery impacts your credibility.
"In addition to these survey results, we've found from many sources—in our viewer labs, with focus group research, and with interviews of dozens of industry experts—that viewers expect more interactive TV."
This statement is most likely to raise your credibility through competence as it demonstrates a thorough understanding of the issue, incorporates various sources of information, and highlights the importance of addressing the changing expectations of TV viewers.
About Demonstrates
Demonstration is a protest movement carried out by a group of people in public. Difference between demonstration and protest. Protests can also occur indirectly as a sense of solidarity among people, due to the arbitrariness of certain parties which results in the misery of others. Meanwhile, a demonstration is defined as a continuation of a protest that is not accepted by the holders of power or authority.
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Question 2 of 10
Which of the following is an example of a value?
A. Sports
B. Public speaking
C. Coding skills
D. Responsibility
SUBMIT
Answer:
》resonsibility
............................
Prompt What is an economy?
Answer:
An economy is the large set of inter-related production and consumption activities that aid in determining how scarce resources are allocated.
Compare and contrast the different types of partnerships. Explain the advantages to a partnership. Explain the disadvantages.
Answer:
ADVANTAGE:Less formal with fewer legal obligationssharing burden easy to get started better decision making knowledge, skills and experience ownership and controlExplanation:
DISADVANTAGE: profits must be shared personal demands taxes no independent status limits on developing business lack of disabilityWhat are classes offered in real time known as?
A.
realtime lessons
B.
live lessons
C.
digital lessons
D.
calendar classes
The classes that are offered in real time are known as live lessons. The correct option is b.
Live lessons are defined as synchronous events organized in a live virtual meeting room where students and teachers have their lesson online, communicating via video, voice, and whiteboard. Live classes make distance learning possible. It allows the instructor and the learner to be at different locations, yet connect in real-time to discuss the subjects. Further, real-time classes add confidence and credibility to those classes. It also gives the instructor a chance to prove their command on the subject.
Thus, the classes that are offered in real time are known as live lessons.
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if a person attempts to make a phone call while they are waiting for a meeting to begin, they are________
a. combining tasks
b. multitasking
c. sequential tasking
d. cleaving tasks
Demand for outboard motors depends on consumers purchasing fishing boats
Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of derived demand.
In the field of economics, derived demand is the desire for an item or service that arises from the need for a comparable or unrelated good or service. The market price of the derived product might be significantly impacted by derived demand.
When utilised to foresee the prospective market for goods other than the desired original product, the demand which is derived from the demand for another good can be a great investing technique. Derived demand only refers to the need for a good or service to be able to purchase or create another good or service.
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The question seems incomplete. The complete question is:
Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of ________ demand.
derived
somebody help me please
What happens if you don’t have a checking account? Where can you go to cash your check?
If you cash it at your bank, can you always have your money immediately?
Why?
What would prevent you from cashing your whole check instead of depositing it?
Answer:
Explanation:
1. Visit the Issuing Bank
Most banks will be willing to cash checks that have been issued from their accounts, which means you can visit a local branch of the issuing bank to get your check cashed. The big benefit of this is that you’ll often be able to cash both personal and payroll checks,And yes They will give the money back immediately but you will have to pay a fee. They will give it back immediately because they are required by the state . 2. Go to Walmart
The retail giant Walmart offers check-cashing services for customers. They’ll cash payroll checks, government checks, tax checks, and MoneyGram money orders, but not personal checks. The fee is $3 for any check up to $1,000, and $6 for any check between $1,000 and $5,000, which is the check-cashing limit.
You can Endorse the Check Over to a Friend, If you have a friend or family member whom you trust, and who has a checking account, you may be able to cash your check by endorsing the check over to them to cash. Ask the bank first if they will honor the check this way first though, since individual bank policies vary. When you endorse the check, you’ll sign your name and underneath write “Pay to the order of [friend’s name],” under which they’ll endorse the check. Their bank will then cash the check with no penalties.
Obviously, this only works if you completely trust your friend. It’s also not a favor you’ll want to get in the habit of asking, as it could be a major inconvenience for them.
You can Use a Check-Cashing Store ,This should be a last resort, as these sorts of establishments generally charge high rates for check cashing. In general, you can expect check-cashing stores to charge you a percentage of your check’s total, although some will also charge a flat fee on top of that.
You can try Prepaid Cards,Some banks will allow you to cash a check for “free” if you load the money into a prepaid card or prepaid account. The problem with these services is that the cards and accounts often have hefty monthly maintenance fees, as well as other hidden charges and fees.
The only thing that would prevent you from cashing your whole check instead of depositing is because If the bank are prepared to cash it then you might as well deposit it and at the same time do a part withdrawal of whatever cash portion of it you need. Why get the cashier to count out the full value of the check and then you hand back some of it to be deposited and recounted . I really indeed Hopes this helps.
1. Buyers, sellers, and producers all have someone else they are competing with for economic benefits. This is known as:
O competition
O monopoly
O collusid
O cartels
Answer:monopoly
Explanation:
An investor does not wish to attempt to time the market, so she invests $300 each month into the GEMCO Growth Fund. Over the past 5 months, her purchase prices have been $10, $12, $15, $20, and $25. On the basis of this information, if she were to stop investing at this point and sell her shares 2 months from now when the NAV is $15 per share and the public offering price is $15.79, it would be CORRECT to state that her A) average cost per share was $16.40 B) proceeds were $15.79 per share C) cost basis for tax purposes was $14.71 D) realized loss would be $1.40 per share
Answer:
It would be 4(67)+ 56-
Explanation:
The prices for all kinds of fish sold in Eastville's downtown Old Market are much lower than the prices charged at uptown seafood stores. Old Market vendors buy fish of similar quality from the same wholesalers and at the same prices as uptown vendors do. Therefore, since Old Market fish vendors' businesses are as profitable as those uptown, the volume of the Old Market vendors' daily fish sales must, on average, be higher.
Which of the following, if true, most strengthens the argument given?
A. People who buy fish at Old Market stores generally have lower incomes than do those who buy fish from uptown seafood stores.
B. Some varieties of fish that are not available at Old Market stores can be found occasionally at uptown seafood stores.
C. Vendors at the old Market save on energy costs by keeping fish on ice instead of in refrigerated cases.
D. Many of the people who live in uptown Eastville prefer to buy fish from the neighborhood stores.
E. Fish vendors at the Old Market do not, on average, have lower overhead costs than uptown vendors do.
Answer:
The most correct answer is D
In which categories did the Chung’s expenditures exceed the amount they had budgeted?
Answer:
There were four major expense categories in which a significant spending variance occurred through the third quarter in the Ongoing Operations component of the 2007 Corporate Operating Budget: Outside Services-Personnel expenditures were $28 million, or 21 percent, less than budgeted.
Explanation:
There is a borrower who wants to run a project that requires an investment of $100. The project is expected to succeed with 90 percent chance and get a gross revenue of y=$150 When the project fails, the borrower gets the limited liability protection . On the lender's side, gross cost of lending is $100 as there is no overhead cost. Using the information provided , compute the threshold interest rate that the lender should charge to break even?
The threshold interest rate that the lender should charge to break even is approximately 185.71%.
To compute the threshold interest rate that the lender should charge to break even, we need to consider the probabilities and outcomes associated with the project's success and failure.
1. Compute the expected revenue:
The project has a 90% chance of success, which means the borrower has a 90% chance of earning $150 in gross revenue. So, the expected revenue is 0.9 * $150 = $135.
2. Compute the expected cost:
The lender incurs a cost of $100 for lending the money. Since there are no overhead costs, the expected cost is $100.
3. Compute the expected return:
The expected return is the difference between the expected revenue and the expected cost. So, the expected return is $135 - $100 = $35.
4. Compute the threshold interest rate:
The threshold interest rate is the rate at which the expected return is equal to zero, meaning the lender breaks even. To compute this, we need to find the rate that makes the present value of the expected return equal to zero.
Using the formula for present value, we can set up the equation:
$35 / (1 + r) = $100
Simplifying the equation, we get:
1 + r = $100 / $35
1 + r = 2.8571
r = 1.8571
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David Harbert recently started a business. During the first few days of operation, Mr. Harbert transferred cash from his personal account into a business account for a company he named Harbert Enterprises. Mr. Harbert’s brother, George, invested cash in Harbert Enterprises for which he received a 25% ownership interest in the company. Harbert Enterprises borrowed cash from First Federal Bank. Harbert Enterprises paid cash to purchase a building from City Properties, Inc. How many reporting entities are mentioned in this scenario
Answer:
5
Explanation:
A reporting entity is any entity in men or organizations that depends on the financial report produced by an organization for an understanding of the financial performances and position for the purpose of decision making. This can be investors and other stakeholders in the business.
In the scenario given , the relative parties that will rely of the financial report are
David Herbert as the Entrepreneur , Herbert Enterprises which prepare the report ,George , Herbert's brother an investor , First federal bank , a loan provider and City properties.
oday’s managers are moving from a controller role to an enabler role. their goal is to provide support and learning opportunities, coach, and guide their employees. andy and scott discuss their approach at barcelona as one that is empowering. "this is your restaurant," andy tells new managers. scott says, "i think you’re limiting your ability to get better," when you tell managers what to do.
Remove an item from an unhappy customer's bill,Change menu prices on seafood dishes due to increased market prices,Seek approval from Scott to run an advertisement in a local newspaper announcing new, extended hours for your location,Hire an additional bartender to meet the demand of increased "happy hour" business
Since ancient times, the phrases "happy hour" and "hour" have been used to describe enjoyable periods. Shakespeare's King Henry V quotes him as saying, "Therefore, my lords, omit no cheerful hour/That may assist our adventure" in act I, scene 2. However, it is more modern to use the term "happy hour" to describe a set time for amusement.The United States Navy is one potential source for the term "happy hour," which refers to a set time for amusement. On board the USS Arkansas, "semi-weekly smokes" were organized by a group of housewives known as the "Happy Hour Social" in the beginning of 1913. The term "happy hours," "happy hour club," or "happy hour social club,"
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What is economy? economic basics study question 2
The study that tells about the production, usage and distribution of goods and services among the people of the nation is called the economy.
What is production?
Production is the process of making finished goods by converting them from its raw materials.
Economy is referring to the study that describes the manufacturing, consumption and distribution of the goods and services among the citizens of the country. The field which studied about economy is called Economics. It could be inclusive of customers, business firms and the government. The customers are the ones who acquire the goods for satisfying his/her wants. The business houses are the entities that made the goods and then make it available in the market for sale to the customers. The government is the authority who regulate the equal distribution of goods to each and every people of the country.Therefore, the economy is briefly explained above.
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Click this link to view O*NET’s Tasks section for General and Operations Managers. Note that common tasks are listed toward the top, and less common tasks are listed toward the bottom. According to O*NET, what are some common tasks performed by General and Operations Managers? Check all that apply.
filing paperwork and entering data into computers
researching, purchasing, installing, and maintaining computers and office technology
reviewing financial statements, sales and activities reports, and other data
overseeing activities related to making products or providing services
managing staff, preparing work schedules, and assigning duties
directing and coordinating activities of businesses or departments
Answer:
C). Reviewing financial statements, sales, and activities reports, and other data
D). Overseeing activities related to making products or providing services .
E). Managing staff, preparing work schedules, and assigning duties
F). Directing and coordinating activities of businesses or departments.
Explanation:
The general and operations managers are responsible for managing the use of resources in the organization and supervising the budget and finances. He/she assesses the financial statements associated with sales, activity reports, and other data related to the projects going on. He/she also looks after the activities associated with making products or dispensing services, preparation of work schedules, managing the staff, assigning responsibilities to them, and directing the staff appropriately to ensure coordination among various activities that are going on at different levels and departments which helps in collectively bringing out the desired output for the organization. Thus, options C, D, E, and F are the correct answers.
Answer:
3,4,5 and 6
Explanation:
3. reviewing financial statements, sales and activities reports, and other data
4. overseeing activities related to making products or providing services
5. managing staff, preparing work schedules, and assigning duties
6. directing and coordinating activities of businesses or departments
Done on Edg Jan.2021
When an entrepreneur takes some of his profits and replaces old machinery, he is investing in
A. Natural Resources
B. Human Capital
C. Land
D. Capital Goods
Answer:
D. Capital Goods
Explanation:
Capital goods are physical assets that a business uses to generate revenues. Usually, capital goods have a useful life beyond one year. It implies that they are not meant for sale in the current financial year.
Capital goods include machinery, plants, and equipment, and other long term tangible assets. Some capital goods require a considerable sum of funds to acquire. Costs incurred in acquiring capital goods are spread over the number of their useful life.
Answer:
ok
Explanation:
ok
What does formula do In a spreadsheet program
Answer:
It uses data entered in certain cells to calculate values for other cells.
Explanation:
Benjamin's credit card has an APR of 19%, calculated on the previous monthly balance, and a minimum payment of 2%, starting the month after the first purchase. His credit card record for the last 7 months is shown in the table below. End of Previous New Payment Finance Principal New month balance charges received charges paid balance. What is the total amount that Benjamin has made in payments over the 7 months?
O A. $59.38
O B. $47.01
O c. $225.64
O D. $285.02
To solve this question, we need to calculate Benjamin's monthly payments of credit card by taking 2% of his previous month's balance and add any new charges he made during that month.
We can then subtract the payment amount from the total amount owed to find the new principal balance.
Using the given table, we can calculate the monthly payments as follows:
Month 1: Payment = 2% x $0 + $115.00 = $115.00. New principal balance = $115.00 + $115.00 x 0.19 / 12 = $116.75.
Month 2: Payment = 2% x $116.75 + $89.43 = $92.14. New principal balance = $116.75 + $89.43 - $92.14 = $114.04.
Month 3: Payment = 2% x $114.04 + $78.51 = $80.19. New principal balance = $114.04 + $78.51 - $80.19 = $112.36.
Month 4: Payment = 2% x $112.36 + $72.02 = $74.86. New principal balance = $112.36 + $72.02 - $74.86 = $109.52.
Month 5: Payment = 2% x $109.52 + $67.23 = $70.95. New principal balance = $109.52 + $67.23 - $70.95 = $105.80.
Month 6: Payment = 2% x $105.80 + $60.68 = $63.10. New principal balance = $105.80 + $60.68 - $63.10 = $103.38.
Month 7: Payment = 2% x $103.38 + $54.35 = $56.67. New principal balance = $103.38 + $54.35 - $56.67 = $101.06.
To find the total amount that Benjamin has made in payments over the 7 months, we add up all the payments he made:
$115.00 + $92.14 + $80.19 + $74.86 + $70.95 + $63.10 + $56.67 = $552.91.
Therefore, the answer is not one of the options provided.
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If the economy is at a point on the short-run Phillips Curve such as point c3, firms and workers will ____, allowing the economy to move toward the long-run Phillips Curve
The firms and workers will adjust their inflation expectations upward at at a point on the short-run Phillips Curve and thus. allowing the economy to move toward the long-run Phillips Curve.
What is the short-run Phillips Curve?As the Phillips curve is a graphic representation that depict the relationship between the rate of unemployment and rate of change of money wages, the short-run graph will show that in the short-term, there is a tradeoff between inflation and unemployment.
However, when the economy is a point on the short-run Phillips Curve, decision may be made by firms and workers to adjust their inflation expectations upward and this will allow the economy to move toward the long-run Phillips Curve.
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Eva is 29 years old and has 2 children, ages 3 and 5. She makes $48,500 a year. Eva decides to buy a $400,000 10-year term policy and then renew the policy for another ten years afterwards. To renew the policy the insurance company charges an extra 40% to her premium rate. Given the options below, assess whether Eva made a wise decision. Annual life insurance premium (per 1,000 dollars of face value) for age 29. A 20-year term for male is 7 dollars and 84 cents, and for female is 6 dollars and 62 cents. 20-year term: for male is 10 dollars and 40 cents, female is 9 dollars and 4 cents. Whole life: male is 20 dollars and 5 cents and female is 18 dollars and 63 cents. A. Eva would have been better off selecting the 20-year term policy. B. Even with the extra charge for renewal, Eva’s plan is the least expensive. C. Given that Eva plans to renew, she should have selected the whole life policy. D. Eva ends up paying the same amount for each policy. Please select the best answer from the choices provided A B C D.
The best answer from the answer choices that were provided is that even with the extra charge for renewal, Eva's plan is the least expensive.
From the question, Eva is 29 and has two kids of 3 and 5. Her plan is to get the $400000 and renew it for another 10 years.
The renewal policy after 10 years is 40%, at the moment, her financial condition seems okay.
But given that the future can not be predicted and her kids are still growing, we are not sure what her finance may be like in 10 years time.
So we can agree with option B. This is a sensible decision.
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A random variable follows a binomial distribution with a probability of success equal to 0.59. Find:
For a sample size of n=6, find: The probability of exactly 4 success
The expected value(mean)
The expected variance
If a random variable follows a binomial distribution with a probability of success equal to 0.59 then the expected variance is approximately equal to 1.468.
Given that a random variable follows a binomial distribution with a probability of success equal to 0.59.
We need to find the following values:
For a sample size of n = 6, find: The probability of exactly 4 successes The expected value(mean)The expected variance
The probability of exactly 4 successes
The probability of exactly 4 successes can be calculated by using the following formula:
P(X = k) = nCk * p^k * (1 - p)^(n - k)
Where, P = Probability of success
n = sample size
nCk = combination of k successes in n trials
Therefore, the probability of exactly 4 successes can be calculated as
P(X = 4) = 6C4 * 0.59^4 * (1 - 0.59)^(6 - 4) = 0.2676
The probability of exactly 4 successes is 0.2676.
The expected value (mean) The expected value (mean) of a binomial distribution is given by the formula: μ = np
where, μ = mean of the binomial distribution n = sample size p = probability of success
Therefore, the expected value is: μ = 6 * 0.59 = 3.54 The expected value (mean) is 3.54.
The expected variance of a binomial distribution is given by the formula: σ^2 = np(1 - p) where σ^2 = variance of the binomial distribution = sample size p = probability of success
Therefore, the expected variance is:σ^2 = 6 * 0.59 * (1 - 0.59)≈ 1.468
The expected variance is approximately equal to 1.468.
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Suppose the interest rate is 7.3% APR with monthly compounding. What is the present value of an annuity that pays $110 every six months for five years? (Note: Be careful not to round any intermediate steps less than six decimal places.)
The present value of an annuity that pays $110 every six months for five years is $ 777.91
Effective monthly compounding rate = 7.5%/12 = 0.00625
Effective six-months rate = (1 + 0.00625)⁶ - 1 = 0.03809084326
n = 5 ˣ 2 = 10
PV = \(\frac{PMT}{r}\) × [ 1- \(\frac{1}{1+ r }\)ⁿ]
= 95 / 0.0380908 ˣ [ 1- 1/ 1+ 0.0380908ⁿ]
= 2494.037723 ˣ 0.3119081762
= $ 777.9107576
The present value of Annuity is $ 777.91.
What are annuity's PV and FV?In contracts for annuities, the terms "present value" and "future value" are frequently used. An annuity future value is the total that will be achieved over time, while its present value is the amount that must be invested now to guarantee a desired payment in the future.
Given a predetermined rate of return or discount rate, the total cash value of all future annuity payments is the annuity present value. You can determine precisely how much value remains in the annuity you purchased by knowing its present value.
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TRUE OR FALSE: A mathematics professor at a university would fall under both the Education and Training career cluster and the STEM career cluster.
You work as a financial analyst at Morgan Stanley. You are evaluating how much Acme Limo should charge a client who will lease a car for 7 years. It will cost Acme $75,000 to buy the car and the car can be depreciated on a five-year MACRS schedule. Acme Limo’s pretax administrative costs including Maintenance, Insurance and Selling Cost are $10,000 per year and they occur at the beginning of each year. The after tax cost of capital is 11% and the tax rate is 20%. Lease payments are made in advance, that is, at the start of each year. The inflation rate is zero.
a. How much is the depreciation in year 4? (sample answer:$500.50)
b. How much is the depreciation tax shield in year 4? (sample answer:$500.50)
c. How much is the present value of after tax administrative costs? (sample answer:$2500.50)
d. What is the total present value of Depreciation tax Shield? (sample answer:$2500.50)
e. What is the before tax break-even operating lease rate? (sample answer: $2500.50)
f. What is the after tax break even operating lease rate? (sample answer: $2500.50)
Depreciation Table for 5-year asset
Year %
1 20.00%
2 32.00%
3 19.20%
4 11.52%
5 11.52%
6 5.76%
a. Depreciation in year 4: $8,640. b. Depreciation tax shield in year 4: $1,728. c. Present value of after-tax administrative costs: $9,009.01. d. Total present value of depreciation tax shield: $1,556.76. (e) Before-tax break-even operating lease rate: $298.08 (approximate). (f) After-tax break-even operating lease rate: $238.46.
a. The depreciation in year 4 can be calculated using the MACRS depreciation table. Since the depreciation rate for year 4 is 11.52%:
Depreciation in year 4 = 11.52% of the cost of the car
Depreciation in year 4 = 11.52% of $75,000
Depreciation in year 4 = $8,640
b. The depreciation tax shield in year 4 is the amount of depreciation multiplied by the tax rate:
Depreciation tax shield in year 4 = Depreciation in year 4 x Tax rate
Depreciation tax shield in year 4 = $8,640 x 20%
Depreciation tax shield in year 4 = $1,728
c. To calculate the present value of after-tax administrative costs, we need to discount them using the after-tax cost of capital. Since the administrative costs are $10,000 per year:
Present value of after-tax administrative costs = $10,000 / (1 + after-tax cost of capital)
Present value of after-tax administrative costs = $10,000 / (1 + 0.11)
Present value of after-tax administrative costs = $9,009.01
d. The total present value of the depreciation tax shield is the sum of the present values of the depreciation tax shields for each year. Using the depreciation tax shields calculated above, we can calculate the present value:
Total present value of depreciation tax shield = Present value of year 4 depreciation tax shield
Total present value of depreciation tax shield = $1,728 / (1 + after-tax cost of capital)
Total present value of depreciation tax shield = $1,728 / (1 + 0.11)
Total present value of depreciation tax shield = $1,556.76
(e) Before-tax break-even operating lease rate:
Total present value of depreciation tax shield = Present value of lease payments
Total present value of depreciation tax shield = $1,728 / (1 + 0.11)^4 (from previous calculations)
Total present value of depreciation tax shield = $1,556.76
Present value of lease payments = P x 5.2137 (annuity factor for 7 years at 11%)
Equating the two:
$1,556.76 = P x 5.2137
Solving for P:
P = $1,556.76 / 5.2137
P = $298.08 (approximately)
Therefore, the before-tax break-even operating lease rate is $298.08.
(f) After-tax break-even operating lease rate:
After-tax break-even operating lease rate = Before-tax break-even operating lease rate x (1 - tax rate)
After-tax break-even operating lease rate = $298.08 x (1 - 0.20)
After-tax break-even operating lease rate = $298.08 x 0.80
After-tax break-even operating lease rate = $238.46
Therefore, the after-tax break-even operating lease rate is $238.46.
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which aspect of the four ps is associated with the development of goods and services based on customer needs and wants? group of answer choices price priority promotion product place
Product, promotion, planning, and place are the four ps is associated with the development of goods and services based on customer needs and wants.
A customer is a character or enterprise that purchases a few other employers' gadgets or offerings. clients are crucial due to the truth they force sales; without them, corporations can't continue to exist.
organization clients, additionally called business clients, buy services or products to use in the production of various merchandise. Such industries encompass agriculture, manufacturing, creation, transportation, and communication, among others. They vary from consumer markets in numerous respects.
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there is very little that employees can do to prevent pollution, except pick up their trash when they're finished welding. sp2
While picking up trash is important, employees can actually do more to prevent pollution in the workplace. Here's an explanation of some additional steps they can take:
Reduce waste: Employees can minimize waste by practicing proper material handling and storage techniques. products.Use eco-friendly materials: Encourage employees to choose eco-friendly alternatives when possible. For example, using water-based or low-VOC (volatile organic compounds) paints instead of those containing harmful chemicals can help reduce air pollution.
Optimize energy usage: Employees can contribute to pollution prevention by conserving energy. Implement recycling programs: Establishing recycling programs in the workplace can greatly reduce the amount of waste that goes to landfills. Employees should be educated on what can be recycled and provided with designated recycling bins.Promote telecommuting and carpooling.
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