Bowie will require saving for $1,101,832.05 to achieve their goal.
He expect to have wages 800% of what he currently owns:
60,000 x 80% = 48,000
Now, this will increase 3% per year for inflation reasons:
Now, we solve for the present value of an annuity of 33 year (95 - 62) with a real rate according to Irwin method of:
1.08/1.03 - 1 = 0.048543
The accounts receivable days: 57.79 days
Fixed asset turnover: 0.33 times
Total Asset Turnover: 0.24 times
Inventory turnover: 2.56 times
The accounts receivable days is calculated by the formula:
The accounts receivable days = (Accounts receivable/Annual Sales) x 365 = ($950,000/$6,000,000) x 365 = 57.79 days
Fixed asset turnover = Net Sales/Fixed assets = $6,000,000/$18,000,000 = 0.33 times
Asset turnover helps investors understand how effectively companies are using their assets to generate sales. Asset turnover is calculated by using following formula:
Total Asset Turnover = Total Sales/Total Assets = $6,000,000/$25,000,000 = 0.24 times
Inventory turnover = Cost of Goods Sold/Inventory = $2,200,000/$860,000 = 2.56 times
TO sovle for the consumer surplus we need to get the equilibrium price and quantity.
If P = 2 then:
Qd = 15 - (5 / 2) x 2 = 15 - 5 = 10
Now we need to knwo how much is the price that makes Lucy do not consume:
We solve for Qd = 0
0 = 15 - (5/2) x P
p = 15 / (5/2) = 6
Now we calculate the area of the consumer surplus which is the area of the demand curve above the equilibrium price.
10 x (6-2) / 2 = 10 x 4 / 2 = 20
A) lag the cycle.
One of the basic mistakes made by classical economists is that they believe that wages and employment are economic variables that can be easily controlled like money supply or interest rates, when actually they are extremely inflexible and they usually vary much less than the economic cycle.
For example, no employee will accept a pay cut, it is easier for the company to fire him than to convince him/her o earn less money. This is logical since I wouldn't accept a pay cut and you probably wouldn't either. Employment as a whole is more closely related (but in the opposite direction) to the inflation rate than to the economic cycle.
Even the government (at all 3 different levels) tries to avoid massive layoffs since a person fired is not simply a lower cost, but it has negative impacts on the economy as a whole and at social and community levels also.
You must also remember that it sometimes is much easier to fire someone than to hire him/her again or someone with similar skills to perform a job once the economy rebounds.
The correct answer is letter "A": lag the cycle.
Business Cycle Indicators (BCI) are variables pooled in an index that helps to measure the health of an economy. The main variables included considered BCI are production and employment. Usually, economic cycles are characterized by an increase in production and employment and after reaching its highest peak comes to a decline heading towards the economy's lowest point.
Employment tends to lag the cycle because it measures how the economy performed. It cannot lead the cycle since employment does not predict future events.
The forecast exchange rate in one's year time according to Goldman Sachs is MXN 14.25/USD
The fact that the Mexican Peso will lose 15% of its value to the dollar means that a dollar will command 15% of the current Peso value in a year's time.
Mathematically, MXN 9.5*1.15= MXN14.25 in a year's time.
It also implies that a Mexican with dollars wanting to convert into MXN in a year's time will receive more Peso compared to now.
Answer: I will expect the spread between the yields to WIDEN
Explanation: The spread between the yield on Treasury bills and commercial paper will widen if the economy were to enter a steep economy.
A downward slope in the economy increases credit risk. It leads to a situation whereby Investors demand a greater premium on debt securities which are subject to default risk.
a. 15 times
b. 24.3 days
The computation is shown below:
a. Accounts receivable turnover
Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable
= $3,150,000 ÷ $210,000
= 15 times
b. Number of days sales in receivables = Total number of days in a year ÷ accounts receivable turnover ratio
= 365 days ÷ 15 times
= 24.3 days
Answer:All of the choices describe intermediate error events.
Explanation:Intermediate error events are triggered when a token causes a fault name to be raised in a normal flow, going through to an Error End Event. Intermediate error event shows changes in the normal sequence caused by an exception in the process. There are basically 2ways in which intermediate error event can be used, it includes when used as a sequence flow of a process or as boundary events related to certain activity or activities, it indicates alternative sequence flow,it is noted with a leaning flash or z sign.
By choosing to install the software the company will lose $104,000 as the costs of installation far outweigh the benefits derivable from deploying the new management software.
Find below detailed calculation of the benefits or(loss) from this course of action:
The loss =Total benefits-total costs
The cost of software $55,000
Cost of installation $151,000
Total cost of software $206,000
Reduction in staff $39,000
Saved general inventory costs $63,000
Total benefits $102,000
Loss from implementing software ($104,000)
The software's deployment would have been worthwhile if the benefits is for a long term,hence the costs can be spread over a number of years.
Answer:it is advisable for the firm to expand their Chicago operations and gradually withdraw from New York.
The market share is the percentage of the market sales that a firm control than their competitors in the market. When a firm wants to expand their operations to new market, it means they want to compete for a share of the market with other firm in the market. What they have to do in order to succeed is that, they have to put in place new strategies that will enable them to take control of the market away from their competitors.
In a perfectly competitive market, profit is maximized when MC = MR, marginal profit can be used to either expand or reduce business operations. In the sense that, a firm should put a stop to their desire for expansion when the marginal cost is reducing profit. As a business is expanding it's cost structure will also experienced an increase. Therefore, in this case transportation cost and assorted cost is a marginal cost which they can save by pulling out of New York completely and concentrating on the Chicago city operation . It is however advisable for the firm to expand Chicago operations where Chicagoans prefer their product than the product of their competitors and gradually withdraw from New York where their competitors have a larger share of the market than them.
The annual amount that I would receive = $35,000,000 / 6 = $5,833,333
There are 6 annual payments that I will receive, one of them is to be received today so its should not be discounted as $1 today is worth $1 today but after a passage of time would not be $1, it might be worth $0.9.
Present Value = Cash flow * 1 / (1+r)^n
Remember that r is the discount rate and n is the number of years.
Y0 PV = $5,833,333
Y1 PV = $5,833,333 * 1/(1+9.5%)^1 = $5327245
Y2 PV = $5,833,333 * 1/(1+9.5%)^2 = $4865064
Y3 PV = $5,833,333 * 1/(1+9.5%)^3 = $4442981
Y4 PV = $5,833,333 * 1/(1+9.5%)^4 = $4057517
Y5 PV = $5,833,333 * 1/(1+9.5%)^5 = $3705495
Y6 PV = $5,833,333 * 1/(1+9.5%)^6 = $3384013
Present Value of Lottery = (Y0 PV + Y1 PV + Y2 PV + Y3 PV + Y4 PV +Y5 PV + Y6 PV)
Present Value of Lottery = $5,833,333 + $5327245 + $4865064 + $4442981 + $4057517 + $3705495 + $3384013 = $31615648
So this is the amount that I will receive in todays value.