eptune Accounting Services expects its accountants to work for 24 comma 000 direct labor hours per year. The​ company's estimated total indirect costs are $ 222 comma 000. The direct labor rate is $ 75 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Neptune performs a job requiring 30 hours of direct​ labor, what is the total job​ cost? (Round any intermediate calculations to the nearest​ cent, and your final answer to the nearest​ dollar.)

Frederick W. Taylor would likely discuss the equal division of work and responsibility between managers and employees, reflecting his emphasis on scientific management, time and motion studies, and improving workplace efficiency.

If Frederick W. Taylor were speaking to a friend about scientific management, he might say: "Are you dividing work and responsibility equally between managers and employees? Managers need to provide friendly help to the workers they employ." This statement aligns with Taylor's philosophy on improving efficiency and productivity in the workplace through careful study and redesign of work processes and fostering a supportive relationship between management and workers. Taylor's approach emphasized the importance of time and motion studies for creating efficient work processes and believed that the goal of management should be to maximize productivity, benefiting both the employer and the employees.

Audience analysis is pivotal in selecting the appropriate organisational strategy for a business message, be it direct or indirect. Understanding the audience's preferences, needs, and expectations guides this choice.

A direct strategy suits audiences with limited time, already familiar with the subject, where the main point is stated upfront. Conversely, an indirect strategy, building up to the main point, suits unfamiliar or skeptical audiences.

The wrong strategy can lead to disengagement or confusion. Audience analysis ensures alignment between strategy and audience, optimizing comprehension, engagement, and persuasion, fostering effective communication and desired outcomes in the business message.

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Answer:

present worth = $7380

Explanation:

given data

initial cash flow = $23,000

geometric gradient = 2%

interest rate i = 10% per year

time period = 5 year

solution

we get here present worth  cost that is

present worth = initial cash flow  × [tex]\frac{1-(\frac{1+g}{1+i})^t}{1-g}[/tex]    ......................1

put here value and we get

present worth =  $23,000  × [tex]\frac{1-(\frac{1+0.02}{1+0.10})^5}{1-0.02}[/tex]    

present worth = $23,000  × 0.32087

present worth = $7380

Answer:

The number of units that must be sold is A. 6,540 units

Explanation:

The number of units must be sold to meet the target profit figure are calculated by using following formula:

The number of units must be sold = (Total fixed cost + Targeted profit) / Contribution margin per unit.

Contribution margin per unit = Sales price per unit – Variable cost per unit = $154 - $99 = $55

The number of units must be sold = ($313,500 + $46,200)/$55 = 6,540 units

Answer:

1

Unitary elastic

Elasticity of demand is unitary elastic because the absolute value of elasticity is equal to 1.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

Percentage change in quantity demanded = (25 - 15) / 25 = 0.4 × 100 = 40%

Percentage change in price = ($5 - $7) / $5 = 0.4 × 100 = 40%

Elasticity of demand = 40% / 40% = 1

If coefficient of elasticity is equal to 1, demand is unit elastic. It means that a change in price has an equal efect on the quantity demanded. Quantity demanded has an equal and proportional change to changes in price.

I hope my answer helps you

The price elasticity of demand is calculated to be 1, indicating unitary elasticity. This means a percentage change in price leads to an equal percentage change in quantity demanded, which implies widgets have a proportional responsiveness to price changes.

The price elasticity of demand for widgets can be calculated using the formula: PED = (% Change in Quantity Demanded) / (% Change in Price)

To determine the percentage change in quantity demanded, subtract the new quantity (15 widgets) from the original quantity (25 widgets), divide by the original quantity, and multiply by 100. The calculation is: [(15 - 25) / 25] * 100 = -40%

The percentage change in price is calculated as: [(7 - 5) / 5] * 100 = 40%

Substituting these values into the formula gives: PED = (-40%) / (40%) = -1. Because we usually report price elasticity of demand as absolute values, we interpret it as 1 in absolute value terms.

Since the price elasticity of demand is 1, it indicates a unitary elasticity. This implies that a 1% change in price induces a proportionate 1% change in quantity demanded. So, as price increased, customers decreased their purchase of widgets proportionately.

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Answer:

€92.64

Explanation:

The present value i.e PV formula is used that is shown in the attached spreadsheet  

The NPER reflects the time period.

Given that,  

Future value = €100

Rate of interest = 6%

NPER = 10 years

PMT = €100 × 5% = €5

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the answer would be €92.64

To find the present value of a bond, calculate the present value of its future coupon payments and its face value, then sum these values. The present value of the bond is the amount it would be worth in today's euros.

The bond's present value (PV) is computed using a discount rate equal to the market interest rate and cash flows based on the bond's face value and coupon rate. The bond pays an annual coupon of €5 (€100 * 5%) for 10 years and pays back the face value of €100 at maturity. Each cash flow is discounted back at the 6% interest rate:

Adding these two components together gives the total present value of the bond. This tells us how much the bond would be worth in today's euros, given the future cash flows and the market interest rate.

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Answer:

$5 million

Explanation:

Trina'sTrikes, Inc. reported following figures:

Debt Equity Ratio = 2

Total Debt = 10 million

Formula for Debt Equity ratio is as follows:

Debt Equity Ratio = Total Debt / Total Equity

2 = $10 million /  Total Equity

Total Equity = $10 million / 2

Total Equity = $5 million

So the correct option is $5 million

The question asks for the preparation of journal entries for various January transactions in a business context.

The subject of this question is Business. The question is asking to prepare journal entries for various January transactions. To prepare journal entries, we need to record the transactions in the appropriate accounts, following the rules of double-entry bookkeeping.

Three important steps are involved in preparing journal entries:

Based on the given transactions, you will need to analyze and record the corresponding journal entries, considering the impact on different accounts such as cash, accounts receivable, rent revenue, supplies, accounts payable, wages expense, and utility expense.

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Answer:

$50,000

Explanation:

The preparation of the operating activities under the indirect method is shown below:

Cash flows from operating activities

Net loss          -$12,000

Add: Depreciation expense  $24,000

Add: Decrease in account receivable $28,000

Less: Increase in inventory -$20,000

Add: Increase in account payable $30,000

Cash provided from operating activities  $50,000

The options are incorrect. The right answer is shown above

Answer:

Explanation:

I will choose 1 customer because I will end up carry 1 load and get $10 dollars... Since the compensation is per ride not per customers...

Answer:

a. $3.5 per share

b. $1.49 per share

c. $38.38 per share

d. 1.93 times

Explanation:

The computation is shown below:

a. Earning per share = (Net income) ÷ (Number of shares)

where,

Net income =  Additions to retained earnings + cash dividends

                    = $261,000 + $194,000

                    =  $455,000

So, the earning per share equal to

= $455,000 ÷ 130,000 shares

= $3.5 per share

b. Dividend per share = (Total dividend) ÷ (number of shares)

= ($194,000) ÷ (130,000 shares)

= $1.49 per share

c. Book value per share = (Total equity) ÷ (number of shares)

= ($4,990,000) ÷ (130,000 shares)

= $38.38 per share

d. Market to book ratio = (Market price per share) ÷ (book value per share)

= $74 ÷ $38.38

= 1.93 times

Answer:

The company will report $115,000

Explanation:

Giving the following information:

Sales revenue= 350,000

Cost of goods sold= (150,000)

Gross profit= 200,000

Operating expenses= (110,000)

Net operating income= 90,000

Foreign currency translation gain= 25,000

Net income= 115,000

The company will report $115,000

Answer:

The answer is $76,312.05

Explanation:

We have monthly interest rate which is discount rate is: 5% / 12 = 0.42%;

The mortgage will have 25 x 12 = 300 payments;

The monthly payment is calculated by applying present value for annuity as below:

(150,000 x 0.42%) / [ 1 - (1+0.42%)^(-300)] = $880.38

As at the time of fully pay-off, there are (25-16) * 12 = 108 payments left.

The amount needs to fully pay-off this loan is equal to the present value of 108 payments left which is calculated as below:

(880.38/0.42%) * (  [ 1 - (1+0.42%)^(-108)] = $76,312.05.

So, the answer is $76,312.05.

Answer:

The amount of money that is in the account three years from now is $8,142.

Explanation:

Future Value of $1200

FV = PV (1 + r )n

     = 1200*(1 + 12%)^3

     = $1685.91

Future Value of $2200

FV = PV (1 + r )n

     = 2200*(1 + 12%)^2

     = $2759.68

Future Value of $3300

FV = PV (1 + r )n

     = 3300*(1 + 12%)^1

     = $3696.00

Total Future Value = $1685.91 + $2759.68 + $3696.00

                               = $8142

Therefore, The amount of money that is in the account three years from now is $8,142.

By accumulating each cash flow separately over its respective period at a 12% interest rate and summing the future values, we determine that approximately $8,148.06 will be in the account three years from now.

To calculate the future value of cash flows deposited in a bank account earning 12% interest, we need to accumulate each cash flow to the end of the three-year period. The cash flow received today, $1,200, earns interest for three years. The cash flow received in one year, $2,200, earns interest for two years. Finally, the cash flow received in two years, $3,300, earns interest for one year.

The future value (FV) is found using the formula FV = PV(1 + r)ⁿ, where PV is the present value, r is the interest rate per period, and n is the number of periods. Following this formula, the future values of the cash flows are:

$1,200  imes (1 + 0.12)³

$2,200  imes (1 + 0.12)²

$3,300  imes (1 + 0.12)¹

Summing these future values will give us the total amount in the account three years from now:

$1,200  × (1.12)³
= $1,689.18 (approx.)

$2,200  × (1.12)²
= $2,762.88 (approx.)

$3,300  × (1.12)¹
= $3,696.00 (approx.)

Adding these figures gives us:
$1,689.18 + $2,762.88 + $3,696.00
= $8,148.06 (approx.)

Therefore, three years from now, there will be approximately $8,148.06 in the account.

Answer:

Beta of portfolio will be 0.92

So option (C) will be correct answer

Explanation:

We have given total  investment of stock = $100000

Investment of stock A = $75000

Investment of stock B = $100000 - $75000 = $25000

Wight of stock A [tex]=\frac{75000}{100000}=0.75[/tex]

Weight of stock B [tex]=\frac{25000}{100000}=0.25[/tex]

Beta of stock A = 0.75

And beta of stock B = 1.42

We have to fond the beta of portfolio

So beta of portfolio = weight of stock A × beta of stock A + weight of stock B × beta of stock B = 0.75×0.75 +0.25×1.42 = 0.92

So beta of portfolio will be 0.92

So option (C) will be correct answer

Answer:

. Inelastic demand, inelastic supply. 

Explanation:

If demand is inelastic, a small change in price has little or no effect on the quantity demanded.

If supply is inelastic, a small change in price has little or no effect on the quantity supplied.

Government tax increases the cost of a good. If tax is levied on a good and both demand and supply are inelastic, government revenue would increase and be the highest when compared to the other options.

Demand is elastic when a change in price has a greater effect on the quantity demanded.

Supply is elastic if a small change in price has a greater effect on the quantity supplied.

If demand or supply is elastic and government imooses tax, revenue would fall as quantity demanded would fall.

I hope my answer helps you

For the highest government revenues, the scenario featuring inelastic demand and inelastic supply is optimal. This is due to consumers and producers being less responsive to price changes, consequently maintaining quantities of goods bought and sold, leading to more revenue.

Given the scenarios outlined in the question, government revenues will be the highest in the situation with inelastic demand and inelastic supply (option b). The term 'elasticity' refers to how sensitive the quantity demanded or supplied is to changes in price. When demand is inelastic, consumers are less responsive to price changes, so a tax that raises the price will result in smaller decreases in quantities bought. Similarly, when supply is inelastic, producers cannot rapidly change their production quantities in response to price changes, so a tax that raises the price will not result in large decreases in quantities supplied. The combination of inelastic demand and inelastic supply means that a tax increase will cause small decreases in quantities bought and sold, thus resulting in higher government revenues.

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Answer:

accounts receivables   4,000 debit

             services revenue       4,000 credit

Explanation:

The accounting works with accrual basis so we will reocrd the transaction when it was performed regarding of the time of collection of the catering services.

The accounting wil represent the fact the services weren't pay at the moment of performance thus, the business has the claim on the billed amount.

Also, it will represent the amount earned for the business which is the 4,000 dollar billed.

The accounting transaction for Mary's Morsels Company will be recorded as a $4000 increase in Assets (Accounts Receivable) and a $4000 increase in Equity (Service Revenue), per the principles of accrual accounting.

In the given scenario, Mary's Morsels Company has provided a catering service but the payment of $4000 will be received in the following month. This is known as accrual accounting. For May 1, the entry in the accounting equation would show an increase in Accounts Receivable and an increase in Service Revenue, both by $4000.

This means the accounting equation is as follows: Assets = Liabilities + Equity

Here, Assets (Accounts Receivable) increase by $4000 and Equity (Service Revenue) also increases by $4000, while there is no change in liabilities. So, you would add $4000 to both sides of the equation.

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Comprehensive income is determined by adding or subtracting income other comprehensive income to (from) net income.

Comprehensive income is a financial reporting concept that goes beyond traditional net income. It includes all changes in shareholders' equity during a specific period, except those resulting from investments by owners and distributions to owners. Comprehensive income encompasses both realized and unrealized gains and losses, such as changes in the fair value of investments or foreign currency translation adjustments.

This broader perspective provides stakeholders with a more comprehensive view of a company's financial performance and helps assess its overall economic well-being. It's particularly valuable for companies with significant exposure to market fluctuations, foreign operations, or complex financial instruments, as it captures a more holistic picture of their financial health.

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Comprehensive income is calculated by adding Other Comprehensive Income to Net Income. Other Comprehensive Income includes all unrealized gains and losses not included in net income. Therefore, it provides a broader view of a company's financial performance.

Comprehensive income is determined by adding

Other Comprehensive Income

(OCI) to

Net Income

, as per option d in your question.

Comprehensive Income helps to provide a bigger and more holistic picture of a company's financial performance. Unlike Net Income, Comprehensive Income includes all revenues, costs, gains, and losses that directly affect shareholders' equity. Other Comprehensive Income encapsulates unrealized gains and losses that are not included in net income, such as foreign currency translation gains or losses, pensions plan gains or losses, and unrealized gains or losses from hedging activities.

So, to calculate Comprehensive Income, you start with Net Income and then add or subtract Other Comprehensive Income. This can include both positive and negative amounts, depending on the company's activities during the accounting period under consideration.

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Answer:

The answer is true

Explanation:

The cost of acquiring  information about the wealth implications of government activities is high

Answer:

d. there is a technological improvement.

Explanation:

a) replacing production of one good in favor of another will be a move across the PPF

b) abandon inefficient production will bring the production to the PPF from a place below it.

c) has no relationship it will simply put inflationary pressure.

d) the technological improvement will make a better use of the factor thus, increasing productivity and making possible more production with the same amount of materials.

The Production Possibility Frontier (PPF) can shift outward in the event of improvements in efficiency of production methods or technological advancements. An increase in money in the economy or shifting resources between products do not directly shift the PPF.

The Production Possibility Frontier (PPF) is a graphical representation showing the combination of two goods that can be produced using available resources and technology efficiently. The PPF can shift outwards due to certain factors. Among the options given:

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Answer: (A) Interim financing

Explanation:

Municipal short notes are also known as short term debt securities which are issued in order to raise finances for daily activities or specialised projects. They are issued by local or State government and are not taxable even at federal level. Examples includes RANS TANS, used for interim or temporary sources of finances.

Municipal short-term notes are used for interim financing to support temporary funding needs for cities and townships during project preparation or construction, not for long-term finance which is typically sourced through the issuance of various types of bonds.

Municipal short-term notes are predominantly used for interim financing. This type of financing is a temporary solution that allows cities and townships to manage their finances while they are preparing for or constructing projects such as new infrastructure, a school, or a sewer treatment plant. Unlike capital markets that are used for the raising of long-term finance, municipal short-term notes are not intended for investments that take several years to provide a return or to repay the money back. Instead, they have maturities that are typically less than one year, such as 1-month, 3-months, 6-months, or up to 1-year durations.

Municipal bonds, another type of borrowing for local governments, are meant to finance both discretionary and non-discretionary large-scale projects. Voters may be involved in bond elections for discretionary items, clearly distinguishing it from short-term interim financing. For the development of long-term infrastructure or permanent financing needs, local governments issue these bonds, agreeing to pay back the borrowed amount with interest over an extended time period.

Answer:

3.76% will be the rate of return per month

while 11.71% the rate of return for the quarter

Explanation:

We have to look for a rate which is equivalent to this three rates.

[tex](1+r_1)(1+r_2)(1+r_3) = (1+r_e)^3\\(1+.028)(1+.0495)(1+.0354)=(1+r_e)^3\\\\\sqrt[3]{1,1170785644} -1 = r_e\\r_e = 0.037595086[/tex]

Answer:

a. 4.89%

b. 5.23%

Explanation:

We use the rate formula which is shown in the attached spreadsheet

Given that,  

Present value = $2,000 × 108.96% = $2,179.20

Future value or Face value = $2,000  

PMT = $2,000 × 5.7% ÷ 2 = $57

NPER = 16 years × 2 = 32 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  

a. The yield to maturity of the bond is 4.89%

b. The current yield would be

= 57 × 2 ÷ $2,179.20

= 5.23%

a) When The yield to maturity of the bond is= 4.89%

b) After that The current yield is = 5.23%

Now We are using the rate formula are:

Given that as per question:

Now The Present value is = $2,000 × 108.96% = $2,179.20

Then The Future value or Face value is = $2,000  

Then PMT is = $2,000 × 5.7% ÷ 2 = $57

Now NPER is = 16 years × 2 = 32 years

Then The formula is shown below:  

That is, = Rate(NPER;PMT;-PV;FV;type)  

Then The present value come in negative  

a. Hence, The yield to maturity of the bond is 4.89%

b. Thus, The current yield would be

= 57 × 2 ÷ $2,179.20

= 5.23%

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Answer: (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts)

Explanation:

The best pair point as related to the opportunity cost is (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts).

If Brazil had an opportunity cost on each cashew for 100 peanuts, then, its best pairs of points on its production possibilities frontier will be (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts).

The Production possibility frontier is an economic curve that illustrates the amounts of two products that can be produced while both of them depend on the exhaustible resources.

In conclusion, the pair will be (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts).

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Answer:

annual percentage rate: 7.0404%

Explanation:

We need to solve for the annual convertible rate  when we are given with the annual effective rate:

[tex](1+APR/52)^{52}=1+0.07289\\APR =( \sqrt[52]{1.07289} -1) \times 52\\[/tex]

apr = 0.0704035593 = 7.0404%

Answer:

7.0403

Explanation:

Suppose the initial investment is $1, we start the formula rEFF=A−P0P0. Next, substituting, we now have 0.07289=A−11 or 0.07289=A−1, so A=$1.07289. We now use this value for A in the formula A=P0⋅(1+rk)N⋅k with P0=$1, k=52 compounding periods for weekly compounded interest, N=1 year, and r is the unknown monthly compounded interest rate for which we are solving. Plug the values into the formula. Take the fifty-second root of both sides. Next, subtract 1 from both sides, and multiply both sides by 52.

1.072891.00135390.00135390.0704028=(1+r52)52=1+r52=r52=r

The final step gives us 0.0704028, converted into a percentage and rounded to four decimal places is 7.0403.

Answer:

All of these

Explanation:

This is because a multinational company can cut costs of operation from one country to another.For example, for the same company setup, one in China and the other in America, the former will have a lower wage scale than the latter due to their varied economic policies.

Furthermore, there will also be less stringent regulation and lower taxes and tariffs in the former than the latter

The expected value of the company's price at public offering, considering the probabilities and values provided, is calculated to be $42.5 billion.

The expected value of the company's price when it goes public can be calculated using the probabilities and values given. The expected value (EV) is calculated by multiplying each possible value by its corresponding probability and summing these products. Therefore, the calculation is as follows:

Adding these values together, the EV = $1 billion + $31.5 billion + $10 billion = $42.5 billion.

Thus, the owner should expect the company to price at around $42.5 billion when it goes public.

Answer:

Quantity demanded falls by 3.5 percent.

Explanation:

Given that,

Income elasticity of demand = +0.50

Price elasticity of demand = -0.15

Cross-price elasticity of demand = +0.35

price of services at St. Elsewhere falls by 10 percent

Therefore,

Cross price elasticity of demand = Percentage change in quantity demanded ÷ Percentage change in price

+0.35 = Percentage change in quantity demanded ÷ (-10%)

0.35 × (-10%) = Percentage change in quantity demanded

(-3.5%) = Percentage change in quantity demanded

Hence, the  quantity demanded falls by 3.5%.

Final answer:

Using the cross-price elasticity of demand, a 10 percent decrease in the price of services at St. Elsewhere leads to a 3.5 percent drop in the quantity demanded at Urban General.

Explanation:

The question involves understanding the impact of a change in the price of services at a nearby hospital (St. Elsewhere) on the demand for services at Urban General, utilizing the concept of cross-price elasticity of demand. Given that the cross-price elasticity of demand with respect to the price of services at St. Elsewhere is +0.35, and there's a 10 percent fall in the price of services at St. Elsewhere, we can calculate the effect on the quantity demanded at Urban General. Since cross-price elasticity of demand measures the percentage change in the quantity demanded of one good resulting from a 1 percentage change in the price of another good, a 10 percent decrease in the price at St. Elsewhere leads to a 3.5 percent (0.35 * -10) fall in the quantity demanded at Urban General. Therefore, the correct answer is: Quantity demanded falls by 3.5 percent.

Explanation:

The computation is shown below:

a) Straight-line method:

= (Purchased cost of packaging equipment - residual value) ÷ (expected useful life)

= ($72,000 - $4,500) ÷ (3 years)

= ($67,500) ÷ (3 years)  

= $22,500

In this method, the depreciation is same for all the remaining useful life

So for all years, the total depreciation is

= $22,500 × 3 years

= $67,500

(b) Double-declining balance method:

First we have to find the depreciation rate which is shown below:

= One ÷ expected useful life

= 1 ÷ 3

= 33.33%

Now the rate is double So, 66.67%

In year 1, the original cost is $72,000, so the depreciation is $48,000 after applying the 66.67% depreciation rate

And, in year 2, it would be

= ($72,000 - $48,000) × 66.67%

= $16,000

And, in year 3, it would be

= $67,500 - $48,000 - $16,000

= $3,500

So the total depreciation is

= $48,000 + $16,000 + $3,500

= $67,500

(c) Units-of-production method:

= (Purchased cost of packaging equipment - residual value) ÷ (estimated operating hours)  

= ($72,000 - $4,500) ÷ (18,000 hours)

= ($67,500) ÷ (18,000 hours)  

= $3.75 per hour

For first year

= 7,600 × $3.75 per hour

= $28,500

For second year

= 6,000 × $3.75 per hour

= $22,500

For third year

= 4,400 × $3.75 per hour

= $16,500

So, the total depreciation is

= $28,500 + $22,500 + $16,500

= $67,500

2. By above calculations, we concluded that the double declining method yields higher depreciation expense in year 1 i.e $48,000

3. By above calculations, we concluded that the all depreciation methods yields most depreciation over the three-year life of the equipment

Answer:  at $194.6673, it is a good deal to invest

Explanation:

From the statement made by the bank that investors should pay $100 per year for 10 years  to get a return of $100 per year forever at an interest rate of 6%, we would need to calculate the Present net value to determine if this is a good deal.

Present net value = Present value of Perpetuity - Present value of Annuity

let us solve for each;

⇒ Present value of annuity in year 0

Present value = payment made × [(1- 1/(1+interest rate)yrs) / interest rate]

= $100 × [(1- 1/(1+6%)¹⁰) / 6%]

= $100 × [(1- 1/(1.06)¹⁰) / 0.06] = $100 ˣ 7.360087

Present value of annuity₀ = $736.0087

⇒ Value of Perpetuity in year 10

Present value of Perpetuity₁₀ = Amount / Rate

 = $100/6% = $100/0.06 = $1666.7

∴ Present value of Perpetuity₁₀ = $1666.7

⇒ Present value of perpetuity in year 0

Present value of Perpetuity₀ = Value of Perpetuity in the end of year 10 / (1 + Rate)ⁿ

where n = no of years

= $1666.7 /(1 + 6%)¹⁰ = $930.676

Present value of Perpetuity₀ = $930.676

Therefore the Net Present value = Present value of perpetuity(inflow) - Present value of annuity(outflow)

Therefore the Net Present value = $930.676 - $736.0087  = $194.6673

⇒This means that the net present value of the investment is a positive value i.e. $194.6673, so it is a good deal of investment.

cheers i hope this helps.

Answer: The answer is $16,666.6, it is a good deal of investment

Explanation:

Using the formula Present Value (PV) of perpetuity = R/i

n= 1

Where R= The receipt for payment and

i = The rate of interest per compounding period

Since n = 10, i = 6% (6 ÷ 100) = 0.06

i = 0.06 ÷ 10

= 0.006

Using the value in the formula we get

PV of perpetuity = 100 ÷ 0.006

= $16,666.6

It is a good deal of investment