Yes, Sharon can potentially collect workers' compensation benefits for the time she has to be away from work while she recovers from her injury.
Workers' compensation is a form of insurance that provides benefits to employees who suffer work-related injuries or illnesses. Its purpose is to cover medical expenses, rehabilitation costs, and a portion of lost wages for employees injured on the job.
The specific eligibility for workers' compensation benefits varies by jurisdiction, as laws and regulations differ. However, in general, if Sharon's injury occurred while she was performing her job duties, such as operating a large machine at work, she may be eligible for workers' compensation benefits.
To determine the coverage and benefits available, Sharon should report the injury to her employer as soon as possible and follow the necessary procedures outlined by her company and local workers' compensation laws. This typically involves seeking medical treatment, documenting the injury, and filing a workers' compensation claim.
The workers' compensation system is designed to provide financial support and assistance to injured workers during their recovery period, ensuring that they receive necessary medical care and a portion of their lost wages while they are unable to work due to the work-related injury or illness.
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2)
a) Assume taxes are zero and an economy has a consumption function of C = 0.70 (Yd) + $476.28. By how much will consumption change if disposable income in the economy changes by 275? Round your answer to two digits after the decimal.
b) Assume taxes are zero and an economy has a consumption function of C = 0.62 (Yd) + $493.90. By how much will savings change if disposable income in the economy changes by 474? Round your answer to two digits after the decimal.
c) Assume taxes are zero and an economy has a consumption function of C = 0.88 (Yd) + $583.18. How much consumption takes place if disposable income is equal to 52,882.48? Round your answer to two digits after the decimal.
a) Consumption will change by $192.50.
b) Savings will change by $293.88.
c) Consumption will amount to $47,087.19.
a) In this scenario, the consumption function is given as C = 0.70 (Yd) + $476.28. Yd represents disposable income. By substituting the given values, we can calculate the change in consumption when disposable income changes by 275. Since the consumption function is linear, the change in consumption will be equal to the change in disposable income multiplied by the marginal propensity to consume (MPC), which is 0.70 in this case. Therefore, the change in consumption is 275 * 0.70 = $192.50.
b) Similar to the previous case, we have a consumption function of C = 0.62 (Yd) + $493.90. We are given that disposable income changes by 474. By using the MPC of 0.62, we can calculate the change in savings. Savings is the difference between disposable income and consumption. So the change in savings will be 474 * 0.62 = $293.88.
c) The consumption function C = 0.88 (Yd) + $583.18 is provided, and we need to find out the consumption when disposable income is $52,882.48. By substituting the given value into the consumption function, we get C = 0.88 * 52,882.48 + $583.18 = $47,087.19.
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what's the language spoken in Egypt?
Answer:
Modern Standard Arabic
Explanation:
Answer:
Arabic thats the language of egypt because most them are Islamic
Which buyer type has an open mind and tends to take chances on new products without hesitation?
a. ready buyer
b. logical buyer
c. stubborn buyer
d. emotional buyer
Answer:
A
Explanation:
15 POINTS
Describe the steps of the check clearing process.
The company's materials price variance for April was $3,000 Favorable. Its materials quantity variance for April was $5,000 Favorable. What does the company use as a standard price per yard of material for its safety suits?
Answer:
the standard price per yard is $6.25
Explanation:
The computation of the standard price per yard is shown below;
Material quantity variance = Standard Price × (Actual quantity - Standard quantity)
-$5,000 = Standard price × (10,000 - 10,800)
Thereore Standard price = -$5,000 ÷ (-800)
= $6.25
Hence, the standard price per yard is $6.25
We simply applied the above formula so that the standard price per yield could come
What does the government do to promote giving to charity?
A People who give do not have to pay income tax.
B Those who give do not have to fill out a tax form.
C The IRS offers free tax help to those who give.
D The government gives tax breaks to people who give.
an insured savings account is also known as a _______ savings account
Answer:
An FDIC insured account
Explanation:
A bank account at an institution where deposits are federally protected against bank failure or theft.
Please research the biggest accounting scandals in U.S. history and choose one to focus on. You can share with the class what the unlawful act was, what the consequence was for the company, and whether the company has recovered. How is this related to the Sarbanes-Oxley Act?
One of the biggest accounting scandals in U.S. history is the Enron scandal. Enron manipulated their financial statements to hide losses and inflate profits, resulting in bankruptcy and thousands of employees losing their jobs.
Enron's collapse led to the dissolution of Arthur Andersen, their auditing firm. The company did not recover, but its former CEO and other executives faced legal consequences. The Enron scandal played a crucial role in the enactment of the Sarbanes-Oxley Act, which aimed to improve corporate governance and financial reporting to prevent similar fraudulent activities in the future.
The Enron scandal involved fraudulent accounting practices that led to the bankruptcy of Enron, an energy company. The consequence for the company was collapse, resulting in the dissolution of their auditing firm. Although some of the company's assets were acquired by other entities, Enron did not recover as an independent entity. The scandal exposed major flaws in corporate governance and financial reporting, leading to the passage of the Sarbanes-Oxley Act in 2002, which implemented stricter regulations to ensure transparency and accountability in financial reporting.
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How does shopping around for an automobile loan benefit you?
Answer:
Shopping around for an automobile loan benefits me from the interest that we are charged gets added to the amount we are borrowing.
npv and irr may disagree about which mutually exclusive project to take if the crossover rate is greater than zero and the required rate of return is:
When the crossover rate is greater than zero and the required rate of return is high, NPV and IRR may disagree on which mutually exclusive project to take.
When the crossover rate is greater than zero, the NPV profile of the two projects intersects, indicating that at this point, the projects have the same NPV value. As a result, the investment decision is determined by the required rate of return.
In some cases, IRR may suggest accepting one project, while NPV may suggest accepting another project. This is because the NPV calculation assumes a reinvestment rate equivalent to the cost of capital, whereas the IRR calculation assumes a reinvestment rate equal to the IRR.
Therefore, when the required rate of return is high, the NPV method may be more reliable than the IRR method, and the investment decision should be based on the project with the highest NPV.
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A high school student starts a lawn mowing business . His riding lawn mower cost $1,000; gas for the season is $2,000. He spends $500 for gas driving to and from jobs, $300 for supplies and repairs, and $200 for a trimmer. Each week his 20 customers pays $40 a week for a 20 week season. How much money did he make?
=$12,000.00 is what he earned
Explanation:
20x40.00=800×20=$16,000.00
16,000.00-$4,000.00 =$12,000.00
A high school student starts a lawn mowing business. He makes a $12,000 profit, of much money. Thus, option (a) is correct.
What is business?
The term business refers to the earning the profit. The business is the taking the risk and the earning the profit. The business are the mainly focuses to the activity of the creating, distribution and selling concept based.
Determine the given the amount of the mowing business are:
His riding lawn mower cost $1,000.Gas for the season is $2,000. He spends $500 for gas driving to and from jobs.$300 for supplies and repairs. $200 for a trimmer.20 customers pays.$40 a week20 week season.The addition of the $1,000 + $2,000 + $500 + $300 + $200
The amount was the 4000
The week was the 20 × 40
The week was the 800
The week was the 800 × 20
The amount was the 16,000
(16000 – 4000) = 12000
The amount was the mowing business money did the make are $12,000. Therefore, option (a) is correct.
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Your question is incomplete, but most probably the full question was.
He makes a $12,000 profit.He makes a $4,000 profit.He has an $8,000 total cash inflow.He has a $4,000 total cash inflow.Which macroeconomic goal do investments in human capital and capital goods contribute to? How?
A
Such investments contribute to the goal of price stability by increasing economic production.
B
Such investments contribute to the goal of economic growth by increasing government spending.
C
Such investments contribute to the goal of price stability by increasing consumer spending.
D
Such investments contribute to the goal of economic growth by increasing economic productivity.
a treasury bond is quoted at 98.2456 "ask" and 97.6432 "bid." what is the bid-ask spread in dollars if the bond has $5,000 in face value?
The bid-ask spread in dollars for this treasury bond is $3,012.
To calculate the bid-ask spread, we subtract the bid price from the ask price: 98.2456 - 97.6432 = 0.6024.To calculate the bid-ask spread in dollars for a bond with a $5,000 face value, we need to multiply the bid-ask spread by the face value of the bond: 0.6024 x $5,000 = $3,012. This means that the bid-ask spread in dollars for this treasury bond is $3,012.
The bid-ask spread is an important concept to understand when investing in bonds. It represents the cost of buying or selling a bond and is typically expressed as a percentage of the bond's price. A narrow bid-ask spread indicates that the market for the bond is liquid, meaning that there are many buyers and sellers and transactions can be executed quickly and at a fair price. A wider bid-ask spread indicates that the market for the bond is less liquid, meaning that transactions may take longer to execute and that buyers and sellers may have to pay a higher cost to buy or sell the bond.
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Which trim level is available exclusively for customers who participate in the 2023 ariya reservation program?.
The PLATINUM+ e-4ORCE is the trim level that is available exclusively for customers who participate in the 2023 Ariya reservation program.
What is the Ariya reservation program?The reservation program is organized by Nissan firm to the public.
In conclusion, the PLATINUM+ e-4ORCE is said to be the trim level that is available exclusively for customers who participate in the 2023 Ariya reservation program.
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Given the following information from Kiing Power Co., find the reqested answers.
Debt: 40,000 bonds outstanding currently trading at $949.87 per bond. The bonds have a 6.0% coupon rate. Coupon payments are made semi-annually. The bond has 18 years remaining to maturity
Preferred Stock: 100,000 shares that are currently trading for $96.71 per share. The preferred stock is paying an annual dividend of $4.75 per share.
Common Stock: 1,000,000 shares outstanding with current market price of $74.17 per share. The firm is expected to announce a $4.60 per share for next year, the growth is 3.15%. The market risk premium is 7.00% and the risk free rate is 1.25%. The firm beta is 1.10.
Assume a 34% tax rate.
Find the following:
%
Before-tax Cost of Debt
After-tax Cost of Debt
Cost of Preferred Stock
Cost of Equity - CAPM
Cost of Equity - Dividend Growth Model
Cost of Equity - Average
WACC
Before-tax Cost of Debt: 5.89%
After-tax Cost of Debt: 3.96%
Cost of Preferred Stock: 5.10%
Cost of Equity - CAPM: 11.35%
Cost of Equity - Dividend Growth Model: 11.18%
Cost of Equity - Average: 11.26%
WACC: 9.34%
Here is the calculation for each answer:Before-tax Cost of Debt: (6.0% coupon rate / 2) * (100% + 34%) = 5.89%
After-tax Cost of Debt: (5.89% * (100% - 34%) = 3.96%
Cost of Preferred Stock: (Annual dividend per share / Current market price per share) * 100% = 5.10%
Cost of Equity - CAPM: Risk free rate + Beta * Market risk premium = 1.25% + 1.10 * 7.00% = 11.35%
Cost of Equity - Dividend Growth Model: (Expected dividend per share * (1 + Growth rate)) / Current market price per share + Growth rate = (4.60 * (1 + 0.0315)) / 74.17 + 0.0315 = 11.18%
Cost of Equity - Average: (5.89% + 5.10% + 11.35% + 11.18%) / 4 = 11.26%
WACC: (Market value of debt * After-tax cost of debt) + (Market value of preferred stock * Cost of preferred stock) + (Market value of common stock * Cost of equity) / (Market value of debt + Market value of preferred stock + Market value of common stock) = (40,000 * 949.87 * 0.396) + (100,000 * 96.71 * 0.051) + (1,000,000 * 74.17 * 0.1126) / (40,000 * 949.87) + (100,000 * 96.71) + (1,000,000 * 74.17) = 9.34%
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Dividing potential customers into groups of similar people is known as
A. customer relationship management
B. market segmentation
C. environmental scanning
D. public accounting
The division of the customers into groups of the similar people is known as market segmentation. Thus correct option is (B).
What is Market Segmentation?Market segmentation is the marketing strategy in which the people are divided into similar groups making the small segments who has the common needs and respond same to the marketing action.
Market segmentation is the process of grouping comparable clients together. Therefore the correct option is (B).
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A major drugstore chain whose stocks are traded on the New York Stock Exchange was considering a 2-for 5 reverse split. If the pre-split market cap was 1.71B, what would the post-split market cap be?
A major drugstore chain whose stocks are traded on the New York Stock Exchange was considering a 2-for 5 reverse split. the post-split market cap be 684 million
What is market cap?Generally, In a 2-for-5 reverse split, every 5 shares of stock are combined into 2 shares. This means that the number of outstanding shares of stock will be reduced by 2.5 times. If the pre-split market cap is 1.71B, the post-split market cap can be calculated by dividing the pre-split market cap by 2.5:
1.71B / 2.5 = 684 million
So, the post-split market cap would be approximately 684 million. Please note that this calculation is based on the assumption that the value of the company's stock remains the same after the reverse split. In practice, the value of the stock may change as a result of the reverse split.
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Unionism refers to the formation of groups of workers working in industries to raise their collective bargaining power. It developed because of industrialization in the country. There are different unions in the country. A public-sector union is a group of workers working in the public sector. A private-sector union is a group of workers working in the private sector
Unionism is the practice of workers in industries coming together to form groups or unions in order to strengthen their collective bargaining power and advocate for their rights and interests.
This movement emerged as a response to the growth of industrialization and the need for workers to have a unified voice in negotiations with employers.
In a broader context, there are different types of unions based on the sectors in which workers are employed. A public-sector union represents workers who are employed in government or public agencies, such as teachers, police officers, or civil servants. Their focus is on addressing issues specific to the public sector and advocating for the rights and working conditions of public employees.
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When banks have less money in required reserves they lend more money out to people and business. So Lower reserves usually help do what to the economy?
Answer:
Lower reserves increase the money supply in the economy.
Banks can either keep deposits in reserves or give them out as loans.
the lower the reserve ratio, the higher the money multiplier and the higher the money supply.
Lowering the reserves can be a form of expansionary monetary policy
Explanation:
Fractional banking is a banking system where a portion of customer's deposits is kept as reserves while remaining portion is lent out. The amount kept as reserves is determined by the required reserve ratio set by the Central bank.
If the required reserve ratio is 10% and $100 is deposited, reserves would be $10 and $90 would be lent out
Increase in the total value of checkable deposit is determined by the money multiplier
Money multiplier = 1 / reserve requirement
Increase in value of total deposit = amount deposited / reserve requirement
Assume 100 is deposited in a bank and the reserve requirement is 10%
Increase in value of total deposit = 100 / 0.1 = 1000
Imagine that the reserve is reduced to 5%
Increase in value of total deposit = 100 / 0.05 = 2000
reducing the reserve requirement increased the value of total deposit and thus the money supply in the economy
commercial banks hold deposits and
which of the following is true of performance management?
Performance management is a continuous process that includes regular check-ins, performance evaluations, feedback, and coaching to develop and improve an employee's performance.
It is the practice of monitoring and enhancing an employee's performance to ensure that the goals and objectives of an organization are achieved effectively and efficiently. Performance management involves the establishment of measurable goals, the regular review of employee performance, the provision of feedback to employees, and coaching to improve their performance. It also involves the identification of employees' developmental needs, as well as providing them with the necessary training and support to improve their performance. Therefore, one of the true statements of performance management is that it is a continuous process that requires the active involvement of employees, supervisors, and managers to achieve its objectives. In conclusion, performance management is a critical aspect of organizational development, which if implemented effectively, can help to enhance employees' productivity and organizational effectiveness.
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True, False, or Indeterminate: State whether the statement is true, false, or indeterminate. (A statement is indeterminate if it cannot be determined to be true or false from the information given. ) Claim: Assuming that there are no changes to the nominal interest rates of loans, an unexpectedly high rate of inflation makes borrowers better off and lenders worse off
False. An unexpectedly high rate of inflation reduces the purchasing power of money over time, so both lenders and borrowers will be worse off.
What is inflation?Inflation is an economic term used to describe a sustained, general rise in the prices of goods and services in an economy over a period of time. Inflation can be caused by a variety of factors, such as an increase in the money supply, a surge in cost of raw materials, or an increase in government spending. Inflation can also be driven by an increase in demand or a decrease in the supply of goods or services. When inflation happens, the purchasing power of a unit of currency is reduced and the cost of goods and services increases.
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(Zaxbys)
select all the salads that are made with regular zalad base x (check all that apply).
Answer choices:fried caesar, buffalo blue, grilled caesar, blackened blue, grilled house, grilled cobb, fried house, fried cobb
Answer:
Fried Caesar, grilled Caesar, Buffalo blue, fried cobb
Explanation:
Salads are made with various vegetables and meat base. The regular salad is green salad which is most commonly used. There are many benefits of having salad with meal. Many people do not like vegetables so they add little meat with salad to consume it. Most regular salad base are fried Caesar and fried cobb.
How did we know that Volkswagen is cheating? Who found out and how did they found out
Answer: can you be more specific please?
Explanation:
Answer:
Explanation:
Volkswagen was caught by independent testing carried out by a clean-air advocacy group, The International Council on Clean Transportation, which tested the cars because it thought they were such a great example of how diesel could be a clean fuel.
Pharoah Company ended its fiscal year on July 31, 2020. The company's adjusted trial balance as of the end of its fiscal year is as follows.
No.
101
112
157
158
201
208
301
306
400
429
711
726
732
Account Titles Debit Credit
Cash $10.100
Accounts receivable 8.900
Equipment 15.700
Accumulated $7.300
depreciation-equip.
Accounts payable 4.100
Unearned rent revenue 2.100
Owner's capital 47.100
Owner's drawings 16.000
Service revenue 64.100
Rent revenue 6.200
Depreciation expense 8.600
Salaries and wages expense 56.300
Utilities expense 15.300
$130.900 $130,900
Prepare the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
To prepare the closing entries based on the adjusted trial balance, revenue accounts are debited, expense accounts are credited, and the balances are transferred to Income Summary. Income Summary is then closed to Owner's Capital, and Owner's Drawings are closed to Owner's Capital.
The adjusted trial balance provides a summary of all the accounts after adjusting entries have been recorded. The adjusted trial balance for Pharaoh Company as of July 31, 2020, is as follows:
Cash: $10,100
Owner's Drawings: $16,000
Salaries and Wages Expense: $56,300
Total: $130,900
Closing entries are journal entries made at the end of an accounting period to transfer temporary accounts (revenues, expenses, and owner's drawings) to permanent accounts (owner's capital). This helps reset the temporary accounts' balances to zero, preparing them for the next fiscal year.
Here are the closing entries for Pharaoh Company:
1. Close the revenue accounts:
(For this example, I assume there is a revenue account not mentioned in the question. Let's call it "Service Revenue.")
Debit: Service Revenue
Credit: Income Summary
2. Close the expense accounts:
Debit: Income Summary
Credit: Salaries and Wages Expense (for $56,300)
3. Close the income summary account to owner's capital:
(For this example, I assume there is an owner's capital account not mentioned in the question. Let's call it "Owner's Capital.")
Debit: Income Summary (with the net income amount)
Credit: Owner's Capital
4. Close the owner's drawings account:
Debit: Owner's Capital (for $16,000)
Credit: Owner's Drawings
These closing entries transfer the balances of the temporary accounts (Service Revenue, Salaries and Wages Expense, and Owner's Drawings) to the permanent account (Owner's Capital), resetting them for the next fiscal year.Let's focus on the key terms: adjusted trial balance, cash, owner's drawings, salaries and wages expense, and closing entries.
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Mary is a stay-at-home mother whose husband died. She has two small
children to care for, and her husband was the primary wage earner for their
family. What Social Security benefits would care for Mary and her children?
A) retirement benefits
B) disability benefits
C) survivor’s benefits
D) worker’s compensation
Answer:
The answer that I think would be correct is option C (survivors benefits)
Explanation:
Retirement benefits definition: a form of social insurance payment made by the US Social Security (for age 62 and older) considering that Mary has two small kids, she probably isn't that old.
Disability benefits: in order to be eligible, you have to be unable to do regular or customary work for at least right days. Considering the fact that Mary is a stay at home mother then she wouldn't be employed.
Survivors benefit: this allows a retiree to ensure after death, a continuous lifetime annuity for their dependents.
Workers compensation: provision of benefits to employees who suffered work related injuries. Mary's husband most likely didn't die in the work place.
Based on what we are learning in Chapter 2, who are the various stakeholder groups that a business
should be paying attention to?
Based on what we are learning in Chapter 2, there are several stakeholder groups that a business should be paying attention to.
These groups are individuals or organizations that are impacted by the actions of the business and can have a significant influence on the success or failure of the organization.
The first group is customers, who are the primary source of revenue for any business. It is important for a business to understand the needs and preferences of its customers and to provide high-quality products and services to meet those needs.
Another group is employees, who are critical to the success of the business. A company must provide a safe and healthy work environment, fair compensation and benefits, and opportunities for growth and development to retain employees and maximize their productivity.
Investors and shareholders are also important stakeholders. They provide capital to the business and expect a return on their investment. It is important for the business to maintain financial stability and provide regular updates on performance to these stakeholders.
Finally, communities and society at large are important stakeholders. A business must consider the impact of its actions on the environment and the community and strive to be a good corporate citizen. This includes ethical and socially responsible behavior and engagement in philanthropic activities.
Overall, businesses must pay attention to a wide range of stakeholder groups in order to achieve long-term success and sustainability.
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QUESTION 17 4 points Save Answer The following financial data is for Cracker Barrel Country Stores (FY2018 and FY2019). Given the following financial data calculate the net working capital for FY2019.
The net working capital of Cracker Barrel Country Stores for the year FY2019 is ($112,748 million).
What is the net working capital for FY2019?Working capital is a financial metric that is the difference between a company's curent assets and current liabilities.
Net working capital is calculated by subtracting current liabilities from current assets.
Current assets for FY2019:
Cash: $17,741 million
Accounts Receivable: $9,465 million
Inventories: $6,516 million
Prepaid Expenses: $6,284 million
Total Current Assets: $44,949 million
Current liabilities for FY2019:
Accounts Payable: $87,573 million
Other Current Liabilities: $70,124 million
Total Current Liabilities: $157,697 million
Net working capital for FY2019:
= $44,949 million - $157,697 million
= -$112,748 million
Missing words:
Consolidated Balance Sheets - USD ($) $ in Millions 12 Months Ended Current assets: Cash Accounts Receivable Inventories Prepaid Expenses Total Current Assets Net Fixed Assets Total Assets FY2020 FY2019 $ 17,741 $ 9,465 6,516 6,284 44,949 44,435 20,861 1,622 $ 90,067 $ 61,806 162,429 174,689 $ 252,496 $ 236,495 12 Months Ended Income Statement - USD ($) shares in Millions, $ in Millions FY2020 Revenues: Sales $ 555,233 Membership Sales 3,918 Total revenues 559,151 Costs and expenses: Cost of sales 420,315 Operating, selling, general and administrative expenses 105,136 Depreciation 11,152 EBIT 22,548 Interest: Net Interest 1,984 EBT 20,564 Taxes 6,858 Net income 13,706 Dividends 6,115 Addition to Retained Earnings 7,591 Accounts Payable Other Current Liabilities Total Current Liab. Long-term debt Total Liabilities Common Stock Retained Earnings Total Equity Total Liab. And Equity 87,573 70,124 5,072 7,666 92,645 77,790 72,320 79,162 164,965 156,952 3,928 3,531 83,603 76,012 87,531 79,543 252,496 236,495.
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I really need help with this asap
You own a property that will give you a total cash flow of $25,000 in year Cash flow is expected to increase by 5% for the following 4 years. You are thinking about selling the property in the 5th year for $237,500. Calculate the total cash flow for each year. Then calculate the present value of the cash flows per year at 15% discount rate. How much % change would there be if the discount rate were 10%? 20%?
If the discount rate were to decrease from 15% to 10%, there would be a decrease of approximately 6.46% in the present value of the cash flows.
To calculate the total cash flow for each year, we start with a cash flow of $25,000 in the first year and increase it by 5% annually for the following four years. Here is the breakdown of the cash flows:
Year 1: $25,000
Year 2: $25,000 + (5% of $25,000) = $26,250
Year 3: $26,250 + (5% of $26,250) = $27,562.50
Year 4: $27,562.50 + (5% of $27,562.50) = $28,940.63
Year 5: $28,940.63 + (5% of $28,940.63) = $30,387.66 (excluding the property sale)
In the 5th year, if you sell the property for $237,500, that would be an additional cash inflow. Adding it to the cash flow for the 5th year:
Year 5: $30,387.66 + $237,500 = $267,887.66 (including the property sale)
To calculate the present value of the cash flows at a 15% discount rate, we need to discount each cash flow and sum them up. The present value formula 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 year.
Calculating the present value for each year:
PV1 = $25,000 / (1 + 0.15)^1 = $21,739.13
PV2 = $26,250 / (1 + 0.15)^2 = $20,652.17
PV3 = $27,562.50 / (1 + 0.15)^3 = $19,275.77
PV4 = $28,940.63 / (1 + 0.15)^4 = $18,044.13
PV5 = $267,887.66 / (1 + 0.15)^5 = $152,488.78
Summing up the present values:
Total present value = PV1 + PV2 + PV3 + PV4 + PV5
= $21,739.13 + $20,652.17 + $19,275.77 + $18,044.13 + $152,488.78
= $232,200.98
To calculate the percentage change if the discount rate were 10%, we can calculate the new present value using the same formula. Let's calculate the net present value and determine the percentage change:
PV1_new = $25,000 / (1 + 0.10)^1 = $22,727.27
PV2_new = $26,250 / (1 + 0.10)^2 = $20,661.16
PV3_new = $27,562.50 / (1 + 0.10)^3 = $19,146.99
PV4_new = $28,940.63 / (1 + 0.10)^4 = $17,686.33
PV5_new = $267,887.66 / (1 + 0.10)^5 = $136,970.36
Total present value at 10% discount rate = PV1_new + PV2_new + PV3_new + PV4_new + PV5_new
= $22,727.27 + $20,661.16 + $19,146.99 + $17,686.33 + $136,970.36
= $217,192.11
The percentage change in the present value when the discount rate changes from 15% to 10% can be calculated as follows:
Percentage change = ((New present value - Old present value) / Old present value) * 100
= (($217,192.11 - $232,200.98) / $232,200.98) * 100
= (-$15,008.87 / $232,200.98) * 100
= -6.46%
To learn more about discount rates
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