No, Elqenna should not have accepted the special order of $10.50 per unit for the bicycle helmet.
The decision should be based on the relevant cost of accepting the special order compared to the product's cost. In this case, the product cost of the helmet is $13 per unit, which includes direct materials (DM) of $2, direct labor (DL) of $4, variable manufacturing overhead (variable-MOH) of $3, and fixed manufacturing overhead (fixed-MOH) of $4.
By accepting the special order at $10.50 per unit, the selling price would be lower than the product cost. This means that the company would be selling the helmet at a loss, considering the total cost incurred in its production.
In addition to the product cost, the decision should also consider the opportunity cost of accepting the special order. If the production line has enough capacity available to produce the 100 helmets requested, it implies that the production line could be used to fulfill other orders or generate revenue. Accepting the special order would mean forgoing the opportunity to use the production line for potentially more profitable orders.
Therefore, considering the selling price below the product cost and the opportunity cost of utilizing the production line, it is not financially viable for Elqenna to accept the special order at $10.50 per unit.
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A Moving to another question will save this response. Question 24 Interpret in below diagram and determine at what point the short run firm will shut down their production and why? $200 MC Cost and revenue 150 100 P=$71 50 V=$74 1 2 5 6 Output 40 9 ATC AVC 10 MR = P
The short-run firm will shut down its production when the price falls below the minimum average variable cost (AVC) to minimize losses. In this case, it would occur when the price (P) is below $74.
In the short run, a firm will continue to produce as long as it can cover its variable costs and contribute to its fixed costs. To determine the shutdown point, we compare the price (P) with the average variable cost (AVC). In the given diagram, the he short-run firm will shut down its production when the price falls below the minimum average variable cost (AVC) to minimize losses.
At prices below $74, the firm would be unable to cover its variable costs, resulting in losses. By shutting down production, the firm avoids incurring further losses associated with variable costs. However, fixed costs would still need to be paid in the short run. The shutdown decision is based on the principle of minimizing losses. If the price (P) is below the minimum AVC, the firm cannot cover its variable costs, and it is more economically rational to halt production temporarily until the price increases or operating conditions improve. Therefore, the short-run firm will shut down its production when the price falls below $74 to minimize losses and avoid incurring further variable costs.
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IN 5 pages' report about a publication ethics issue in which you can find from internet.
In the current technological era, the internet has become a necessary tool in the publication of information. However, with the increased utilization of the internet, many ethical concerns have been raised about the way information is published.
This essay will examine one publication ethics issue found on the internet.Internet ethics can be defined as the ethical principles and moral standards that should be upheld by all internet users, including those who publish information on the internet. Ethical concerns arise because the internet is easily accessible to anyone, and information can be disseminated to a global audience in a matter of seconds.Publication ethics issues that can be found on the internet include plagiarism, cyberbullying, copyright infringement, and invasion of privacy. In this report, I will focus on plagiarism as one of the major publication ethics issues.
Plagiarism refers to the act of using someone else's work without their consent or acknowledgment. It involves presenting someone else's work as one's own. Plagiarism can be intentional or unintentional. It is considered a violation of publication ethics because it undermines the principles of intellectual property rights and academic integrity. Plagiarism is common on the internet, especially in academic writing.Various strategies can be implemented to address plagiarism on the internet. One approach is to use plagiarism detection software that can identify similarities between the submitted work and other sources on the internet.
Another strategy is to educate internet users on the importance of originality and citing sources. Academic institutions can also implement strict penalties for plagiarism, such as suspension or expulsion.In conclusion, plagiarism is one of the major publication ethics issues found on the internet. To address this issue, various strategies can be implemented, such as using plagiarism detection software, educating internet users on the importance of originality, and imposing strict penalties for plagiarism. It is important for internet users to uphold ethical principles and moral standards to ensure the credibility and integrity of information published on the internet.
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When new firms enter a perfectly competitive market in which firms are making an economic profit, the market supply curve shifts ____ and the market price _____
A. rightward; falls B. rightward; rises C. leftward; falls D. leftward; rises
When new firms enter a perfectly competitive market in which firms are making an economic profit, the market supply curve shifts rightward and the market price falls.
When new firms enter a perfectly competitive market, the overall supply of goods or services in the market increases. This is because each new firm adds to the total quantity of goods or services available. As a result, the market supply curve shifts rightward, indicating a higher quantity supplied at each price level.
The entry of new firms into the market also affects the market price. With an increase in the overall supply of goods or services, the market becomes more competitive as firms vie for customers. As a result, the increased competition exerts downward pressure on prices. The market price falls as a result of this competition.
To illustrate this, consider a scenario where the existing firms in a perfectly competitive market are earning economic profits due to limited competition. When new firms enter the market, the supply curve shifts to the right, indicating a greater quantity supplied at each price.
This increase in supply outpaces the increase in demand, creating a surplus in the market. In order to sell their products, firms must lower their prices to attract customers, which leads to a decrease in the market price.
In summary, when new firms enter a perfectly competitive market where existing firms are making an economic profit, the market supply curve shifts rightward due to the increased supply. Consequently, the market price falls as competition intensifies among the firms.
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Assuming a flexible exchange rate regime, briefly explain the impact on the Canadian dollar exchange rate with a foreign currency (the Euro) if there is an increase in domestic interest rates due to an expected increase in inflation, assuming nothing else changes.
An increase in domestic interest rates due to an expected increase in inflation, under a flexible exchange rate regime, would likely result in an appreciation of the Canadian dollar relative to the Euro.
In a flexible exchange rate regime, the exchange rate between two currencies is determined by market forces of supply and demand. When domestic interest rates increase due to expected inflation, it signals a higher return on investment in the domestic currency. This attracts foreign investors, leading to an increased demand for the Canadian dollar. As a result, the value of the Canadian dollar strengthens relative to the Euro.
Higher domestic interest rates make investments in the domestic currency more attractive, as they offer higher returns compared to foreign currencies. Foreign investors would likely seek to exchange their Euros for Canadian dollars to take advantage of the higher interest rates. The increased demand for Canadian dollars drives up its value in the foreign exchange market, causing an appreciation against the Euro. This appreciation means that one Euro would be able to buy fewer Canadian dollars than before the interest rate increase.
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Effect of events on financial statements Rios Company had the following balances in its accounting records as of December 31, 2011: CHECK FIGURES b. $28,000 ค. $(3,000) The following accounting events apply to Rios's for 2012: Jan. I Acquired an additional $40,000 cash from the issue of common stock. April I Paid $5,400 cash in advance for a one-year lease for office space. June I Paid a $2,000 cash dividend to the stockholders. 98 Chapter ? July I Purchased additional land that cost $25,000 cash. Aug. I Made a cash payment on accounts payable of $10,000. Sept. I Received $7,200 cash in advance as a retainer for services to be performed monthly during the next eight months. Sept, 30 Sold land for $22,000 cash that had originally cost $22,000. Oct. I Purchased 5900 of supplies on account. 31 Received $56,000 cash collections from accounts receivable. 31 Incurred $12,000 other operating expenses on account during the year. 31 Recognized accrued salaries expense of $5,000. 31 Had $150 of supplies on hand at the end of the period. 31 The land purchased on July 1 had a market value of $28,000. 31 Recognized $250 of accrued interest revenue. Required Based on the preceding information, answer the following questions. All questions pertain to the 2012 financial statements. (Hint: Record the events in general ledger accounts under an accounting equation before answering the questions.) a. What two additional adjusting entries need to be made at the end of the year? b. What amount would be reported for land on the balance sheet? c. What amount of net cash flow from operating activities would Rios report on the statement of cash flows? d. What amount of rent expense would Rios report in the income statement? e. What amount of total liabilities would Rios report on the balance sheet? f. What amount of supplies expense would Rios report on the income statement? g. What amount of unearned revenue would Rios report on the balance sheet? h. What amount of net cash flow from investing activities would Rios report on the statement of cash flows? i. What amount of total expenses would Rios report on the income statement? j. What total amount of service revenue would Rios report on the income statement? k. What amount of cash flows from financing activities would Rios report on the statement of cash flows? I. What amount of net income would Rios report on the income statement? m. What amount of retained earnings would Rios report on the balance sheet?
To answer the questions regarding the financial statements of Rios Company for 2012, we need to analyze the provided accounting events and record them in general ledger accounts under the accounting equation.
a. The two additional adjusting entries needed at the end of the year are:
Accrued salaries expense: $5,000 (Recognized on September 30)
Supplies expense: $750 [($900 - $150) supplies used during the year]
b. The amount reported for land on the balance sheet would be:
$25,000 (original cost) + $3,000 (gain on sale) = $28,000
c. The net cash flow from operating activities on the statement of cash flows would be:
Cash collections from accounts receivable: $56,000
Cash payments for other operating expenses: $12,000
Net cash flow from operating activities: $44,000
d. The amount of rent expense reported in the income statement would be:
$5,400 (paid in advance for a one-year lease)
e. The amount of total liabilities reported on the balance sheet would depend on the additional information provided about liabilities. It is not mentioned in the given information.
f. The amount of supplies expense reported on the income statement would be:
$900 (total supplies purchased) - $150 (supplies on hand at the end of the period) = $750
g. The amount of unearned revenue reported on the balance sheet would be:
$7,200 (received in advance as a retainer for services)
h. The net cash flow from investing activities on the statement of cash flows would be:
Cash paid for land: $25,000
Cash received from the sale of land: $22,000
Net cash flow from investing activities: -$3,000
i. The total amount of expenses reported on the income statement would depend on additional information provided about expenses. It is not mentioned in the given information.
j. The total amount of service revenue reported on the income statement would depend on additional information provided about revenue. It is not mentioned in the given information.
k. The amount of cash flows from financing activities reported on the statement of cash flows would depend on additional information provided about financing activities. It is not mentioned in the given information.
l. The amount of net income reported on the income statement would depend on additional information provided about revenue and expenses. It is not mentioned in the given information.
m. The amount of retained earnings reported on the balance sheet would depend on the net income and dividends information, which is not mentioned in the given information.
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To answer the questions regarding the financial statements of Rios Company for 2012, we need to analyze the provided accounting events and record them in general ledger accounts under the accounting equation.
a. The two additional adjusting entries needed at the end of the year are:
Accrued salaries expense: $5,000 (Recognized on September 30)
Supplies expense: $750 [($900 - $150) supplies used during the year]
b. The amount reported for land on the balance sheet would be:
$25,000 (original cost) + $3,000 (gain on sale) = $28,000
c. The net cash flow from operating activities on the statement of cash flows would be:
Cash collections from accounts receivable: $56,000
Cash payments for other operating expenses: $12,000
Net cash flow from operating activities: $44,000
d. The amount of rent expense reported in the income statement would be:
$5,400 (paid in advance for a one-year lease)
e. The amount of total liabilities reported on the balance sheet would depend on the additional information provided about liabilities. It is not mentioned in the given information.
f. The amount of supplies expense reported on the income statement would be:
$900 (total supplies purchased) - $150 (supplies on hand at the end of the period) = $750
g. The amount of unearned revenue reported on the balance sheet would be:
$7,200 (received in advance as a retainer for services)
h. The net cash flow from investing activities on the statement of cash flows would be:
Cash paid for land: $25,000
Cash received from the sale of land: $22,000
Net cash flow from investing activities: -$3,000
i. The total amount of expenses reported on the income statement would depend on additional information provided about expenses. It is not mentioned in the given information.
j. The total amount of service revenue reported on the income statement would depend on additional information provided about revenue. It is not mentioned in the given information.
k. The amount of cash flows from financing activities reported on the statement of cash flows would depend on additional information provided about financing activities. It is not mentioned in the given information.
l. The amount of net income reported on the income statement would depend on additional information provided about revenue and expenses. It is not mentioned in the given information.
m. The amount of retained earnings reported on the balance sheet would depend on the net income and dividends information, which is not mentioned in the given information.
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Grouper Company expects to produce 1,104,000 units of Product XX in 2022. Monthly production is expected to range from 73,600 to 110,400 units. Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1.
In March 2022, the company incurs the following costs in producing 92,000 units: direct materials $478,400, direct labor $548,320, and variable overhead $740,600. Actual fixed costs were equal to budgeted fixed costs.
Prepare a flexible budget report for March. (List variable costs before fixed costs.)
Flexible Budget Report for March 2022: Actual Production: 92,000 units Variable Manufacturing Costs: Direct Materials: $5 × 92,000 units = $460,000 , Overhead: $8 × 92,000 units = $736,000
A flexible budget report compares actual costs with the budgeted costs at the actual level of production. In this case, the actual production for March was 92,000 units. We calculate the variable manufacturing costs by multiplying the actual units produced by the budgeted variable cost per unit for each category (direct materials, direct labor, and overhead). The fixed manufacturing costs remain the same as the budgeted amount per unit. The total manufacturing costs are obtained by summing up the variable and fixed costs. In this scenario, the actual fixed costs match the budgeted fixed costs. The flexible budget report provides insights into the actual costs incurred compared to the budgeted costs.
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Reflect on your experience in the tower building exercise and consider how this compares to a team you have been a part of in the past in a personal, academic or work environment.
Discuss which of Goleman's six leadership styles were used in each situation. Were they appropriate for the circumstances? Consider whether the core competencies of emotional intelligence were demonstrated e.g., self-awareness, self-management, social awareness and social skill. Was there room for improvement? Explain.
Describe how the four motivational drives (i.e., to acquire, bond, comprehend and defend) affected your motivation and the motivation of your team members. Discuss how these drives were satisfied or could have been satisfied better. Consider both yourself and your team members.
In the tower building exercise, teamwork played a crucial role in achieving success. Similarly, in a previous team experience, collaboration was essential for achieving common goals. In both situations, Goleman's leadership styles of coaching and democratic leadership were evident. These styles were appropriate as they encouraged active participation, open communication, and skill development within the team.
Regarding emotional intelligence, self-awareness was demonstrated as team members recognized their individual strengths and weaknesses. Self-management was evident through effective time management and adaptability to changing circumstances. Social awareness was displayed by considering the perspectives and needs of other team members. Social skills were demonstrated through effective communication, collaboration, and conflict resolution.To better satisfy these drives, a clearer understanding of individual and team motivations could have been established.
Overall, reflecting on the experience, the application of appropriate leadership styles, demonstration of emotional intelligence, and addressing the motivational drives were essential for successful team collaboration. However, there are always areas for improvement to optimize individual and team performance.
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Erindale Bank offers you a $49,000, four-year term loan at 7.0% annual interest. What will your annual loan payment be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Annual loan payment
The annual loan payment of the Erindale Bank is $14,126.64.
To calculate the annual loan payment, we can use the formula for the present value of an annuity. Given a $49,000 loan amount, a four-year term, and an annual interest rate of 7%, the annual loan payment can be calculated as follows:
Annual Loan Payment = Loan Amount / Present Value of an Annuity Factor
Using the formula for the present value of an annuity factor:
Present Value of Annuity Factor = (1 - (1 + r)^(-n)) / r
r = annual interest rate (in decimal form)
n = number of periods
Plugging in the values:
r = 0.07 (7% as a decimal)
n = 4 (four-year term)
Present Value of Annuity Factor = (1 - (1 + 0.07)^(-4)) / 0.07
Present Value of Annuity Factor ≈ 3.4651
Now, we can calculate the annual loan payment:
Annual Loan Payment = Loan Amount / Present Value of Annuity Factor
Annual Loan Payment = $49,000 / 3.4651
Annual Loan Payment ≈ $14,126.64
Therefore, the annual loan payment will be approximately $14,126.64.
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Fill in the values below for the following question. Put a question mark beside the value you are trying to solve for. Then solve using a TVM online solver.
Geralt wants to invest enough money today to have $6000 in 3 years. How much should he invest today at 7% per year compounded quarterly?
Number of compounding periods (n):
Interest rate as percent (I):
Present value (PV):
Regular payment/withdrawal (PMT):
Future value (FV):
Payments per year:
Compounds per year:
Geralt should invest approximately $5,212.35 today to have $6,000 in 3 years at an interest rate of 7% per year compounded quarterly.
To calculate the present value (PV) that Geralt should invest today, we can use the time value of money (TVM) formula. The formula for calculating the present value is:
PV = [tex]FV / (1 + I/n)^(n*t)[/tex]
Where:
PV = Present value
FV = Future value
I = Interest rate
n = Compounds per year
t = Number of years
In this case, Geralt wants to have $6,000 in 3 years, the interest rate is 7% per year, and compounding is done quarterly. The number of compounding periods (n) would be 4 (quarterly compounding), and the number of years (t) would be 3.
We can set up the TVM equation as follows:
PV = 6000 / (1 + 0.07/4)^(4*3)
By using a TVM online solver or calculator, we find that Geralt should invest approximately $5,212.35 today to accumulate $6,000 in 3 years at an interest rate of 7% per year compounded quarterly.
By investing this amount, Geralt will earn enough interest over the 3-year period to reach the desired future value of $6,000.
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What are the advantages/disadvantages of migrating to the
Processes and IT (P & IT) model?
The Processes and IT (P & IT) model refers to the integration of business processes and IT systems within an organization. This model aims to align technology with business objectives, enhance efficiency, and improve decision-making.
Here are some advantages and disadvantages of migrating to the P & IT model:
Advantages:
Improved operational efficiency: The P & IT model streamlines and automates business processes, resulting in increased operational efficiency.
Enhanced collaboration: Integrating processes and IT systems encourages cross-functional collaboration within an organization.
Better customer experience: By integrating IT systems and processes, organizations can provide a more seamless and personalized customer experience.
Increased agility and adaptability: The P & IT model facilitates agility and adaptability in an organization.
Data-driven insights: Integration of processes and IT systems generates vast amounts of data.
Disadvantages:
Complex implementation: Migrating to the P & IT model can be a complex and challenging process.
Costly investment: Adopting the P & IT model often involves substantial upfront costs, including the acquisition and integration of IT systems, software licenses, hardware upgrades, and training.
Resistance to change: Employees may resist the changes associated with the P & IT model, particularly if they are accustomed to legacy systems or manual processes.
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[The following information applies to the questions displayed below.] Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology Engineering design work Development of a prototype device Testing and modification of the prototype Legal fees for patent application Legal fees for successful defense of the new patent Total $3,700,000 1,140,000 570,000 370,000 77,000 37,000 $5,894,000 During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all the above as costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized. Required: 1. Determine the amount Satellite Systems should capitalize to the Patent account in the balance sheet. Patent costs capitalized
Satellite Systems should capitalize $4,150,000 to the Patent account in the balance sheet.
To determine the amount Satellite Systems should capitalize to the Patent account, we need to identify the costs that are directly attributable to the development and acquisition of the patent. According to the information provided, the following costs are eligible for capitalization:
Basic research to develop the technology: $3,700,000Engineering design work: $1,140,000Development of a prototype device: $570,000Testing and modification of the prototype: $370,000Legal fees for patent application: $77,000Legal fees for successful defense of the new patent: $37,000Adding up these costs, we have a total of $5,894,000. However, not all of these costs should be capitalized. The costs that should be capitalized are those directly related to obtaining the patent, which include the engineering design work, development of the prototype, testing and modification of the prototype, and legal fees for the patent application. Therefore, the total amount that should be capitalized to the Patent account is $4,150,000 ($1,140,000 + $570,000 + $370,000 + $77,000).
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7-month at-the-money European call option on a non-dividend-paying stock is currently selling for CHF 6.60 while a put with the same terms is selling for CHF4.50. The underlying stock price is CHF 65.00, and the risk-free rate is 6% per year. Is there an opportunity for you as an arbitrageur? If so describe the trades you would undertake and the profit you would make; if not explain why not. 2. Given the data in question 1 , was the actual stock cheaper than the synthetic stock?
The total profit earned by the arbitrageur is CHF 9.90. Therefore, the actual stock was cheaper than the synthetic stock.
There is an opportunity for the arbitrageur. The stock is underpriced. The trades undertaken by the arbitrageur to take advantage of the opportunity are:· Buy a call· Sell a put· Buy stock The profit earned by the arbitrageur is as follows:· Profit from buying call option: Max [(0, S(T) - X)] - C = Max [(0, 70 - 65)] - 6.60 = CHF 3.40· Profit from selling put option: Max [(0, X - S(T))] - P = Max [(0, 65 - 60)] - 4.50 = CHF 0.50· Profit from buying stock: S(T) - S = 70 - 65 = CHF 5Therefore, the total profit earned by the arbitrageur is CHF 9.90. Therefore, the actual stock was cheaper than the synthetic stock. Therefore, the total profit earned by the arbitrageur is CHF 9.90. Therefore, the actual stock was cheaper than the synthetic stock.
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Luna's savings account had the following balances. How much is Luna's ADB for the 2nd quarter of 2019? P752,670.33 P752,380.43 P761,033.33 P760,648.35
Luna's ADB for the 2nd quarter of 2019 is approximately P760,648.35. The correct option is P760,648.35.
In order to find Luna's average daily balance (ADB) for the 2nd quarter of 2019, we need to add up the daily balances for the entire quarter and divide by the number of days in the quarter.
The second quarter of 2019 consists of April, May, and June, which has 30, 31, and 30 days respectively. This gives us a total of 91 days in the quarter.
Luna's savings account balances for each day of the second quarter are not given, but we are given the ending balances for each month.
Therefore, we can estimate the average daily balance using the formula: ADB = (EB1 x D1 + EB2 x D2 + EB3 x D3)/91 Where EB1, EB2, and EB3 are the ending balances for April, May, and June, and D1, D2, and D3 are the number of days in each respective month.
Using the given values: P752,670.33 (ending balance for April) P752,380.43 (ending balance for May) P761,033.33 (ending balance for June)D1 = 30, D2 = 31, D3 = 30
Substituting these values into the formula gives: ADB = (752670.33 x 30 + 752380.43 x 31 + 761033.33 x 30)/91≈ P760,648.35.
Therefore, Luna's ADB for the 2nd quarter of 2019 is approximately P760,648.35.
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The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest EPS was $13.50, all of which was reinvested in the company. The firm's expected ROE for the next five years is 22% per year, and during this time it is expected to continue to reinvest all of its earnings. Starting in year 6, the firm's ROE on new investments is expected to fall to 17%, and the company is expected to start paying out 25% of its earnings in cash dividends, which it will continue to do forever after. DEQS's market capitalization rate is 20% per year. a. What is your estimate of DEQS's intrinsic value per share?
b. Assuming its current market price is equal to its intrinsic value, what do you expect to happen to its price over the next year?
To estimate DEQS's intrinsic value per share, we need to calculate the present value of all the future dividends. Given the information provided, we can break down the calculation into two parts: the value of dividends during the growth phase (years 1-5) and the value of dividends during the stable phase (starting from year 6).
a. Calculation of Intrinsic Value per Share: Calculate the value of dividends during the growth phase (years 1-5): Determine the future dividends for each year using the expected ROE of 22% and assuming all earnings are reinvested. Discount each year's dividend back to the present using the market capitalization rate of 20%. Sum up the present values of the dividends for years 1-5. Calculate the value of dividends during the stable phase (starting from year 6): Determine the future dividends using the expected payout ratio of 25% and the expected ROE of 17%. Discount the future dividends back to the present using the market capitalization rate of 20%. Add the present values of the dividends from the growth phase and the stable phase to obtain the total intrinsic value.
b. Expectation for Price Over the Next Year: If the current market price is equal to the intrinsic value per share, we would expect the price to remain relatively stable over the next year, assuming no significant changes in market conditions or the company's prospects.
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Which of the following expenses may a partnership elect to amortize over a 15-year period?
A)Advertising expense incurred before the partnership began their first actual day of business.
B)Employment taxes paid by the partnership.
C)Legal and professional fees paid after the partnership begins business.
D)A purchase of a building and land.
The following expenses may a partnership elect to amortize over a 15-year period: D) A purchase of a building and land.
In accounting, amortization refers to the method of incrementally charging the cost of an asset to expenditure over its useful life. The IRS requires businesses to utilize specific criteria to determine if an expense is deductible. One way that a partnership can claim deductions is through amortization of business expenses.Business assets like buildings and land have a long life span, so the partnership may choose to amortize them over a period of 15 years. This results in the cost of the purchase being divided into equal amounts and recorded as an expense over the life of the asset. The cost of the building is spread out over its estimated useful life. This results in an accurate portrayal of the partnership's costs over time, instead of having a large expense recorded in one period.
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Bavarian Bar and Grill opened for business in November 2021. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $7,600, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 90% of gift cards are redeemed within one year. Gift cards totaling $2,500 were presented for redemption during 2021 for meals having a total price of $2,900. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Sales taxes will be remitted in January. Required: 1. Prepare the appropriate journal entries (in summary form) for the gift cards and meals sold during 2021 (keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually). 2. Determine the liability for gift cards to be reported on the December 31, 2021, balance sheet. 3. What is the appropriate classification (current or noncurrent) of the liabilities at December 31,2021 ?
1. The Journal Entries for Gift Cards and Meals Sold during 2021 are as follows:November 1, 2021Debit Cash $7,600Credit Uneared Revenue (Gift Cards) $7,600.
(To record the sale of gift cards) December 31, 2021 Debit Uneared Revenue (Gift Cards) 4,700 Credit Sales Revenue 4,700 (To record the 90% expected redemption of gift cards). Debit Cash 2,900Credit Sales Revenue 2,785Credit Sales Tax Payable $115.
(To record the sale of meals and the sales tax payable on it)January 1, 2022 Debit Uneared Revenue (Gift Cards) 1,900Credit Sales Revenue 1,900 (To record the 10% expected redemption of gift cards in 2022)2. The Liability for Gift Cards to be reported on the December 31, 2021, balance sheet is 2,900 (7,600 - 4,700).
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Question 13 Which of these is not a problem with the command economy? O Freedom of Enterprise O Lack of meaningful prices Coordination O Incentive Question 14 If A and B are subsitutes An increase in the price of a subsitute (good B) will Shift the demand to the right for good A O Shift the demand to the left for good A Have no impact on demand for good A Result in a lower price for good A Kurzweil 3000 Read the Web Question 15 If A and B are complements A decrease in the price of a complement (good B) will O Shift the demand to the right for good A Result in a lower price for good A O Have no impact on demand for good A O Shift the demand to the left for good A
A command economy is a type of economy that is governed by a centralized authority.
In this type of economy, the government makes all of the decisions regarding production, distribution, and pricing. This type of economy is often associated with socialism, communism, and totalitarianism. The lack of incentive is not a problem with a command economy.
This is because the government controls the economy, so there is no need for individuals to have an incentive to produce or work.Question 14:If A and B are substitutes, an increase in the price of a substitute (good B) will:Shift the demand to the right for good AIf goods A and B are substitutes, it implies that they can be used interchangeably. If the price of good B, a substitute for good A, increases, the demand for good A will increase.
This is because consumers will shift to the less expensive option.Question 15:If A and B are complements, a decrease in the price of a complement (good B) will:Shift the demand to the right for good AIf goods A and B are complements, it implies that they are used together. If the price of good B decreases, which is a complement to good A, the demand for good A will increase.
This is because the decrease in the price of good B will encourage consumers to purchase more of both goods, resulting in a shift in the demand curve to the right.
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Three distinct categories of subcontractor organisations offer services in the construction industry? Name two and identify a key feature of each.
What well-known group of studies in the 1920s and 1930s provided insights into group dynamics, and other interpersonal processes in organisations? What management approach did these studies initially emerge from?
Subcontractor categories: Specialty Subcontractors (possess specialized skills) and General Subcontractors (coordinate multiple trades).
Hawthorne Studies in the 1920s-1930s provided insights into group dynamics and emerged from the scientific management approach, focusing on social and human factors in the workplace.
Subcontractor categories in the construction industry include specialty subcontractors and general subcontractors.
Specialty subcontractors have specialized skills in specific trades, while general subcontractors oversee and coordinate multiple subcontractors and trades.
The Hawthorne Studies conducted in the 1920s and 1930s explored group dynamics and interpersonal processes in organizations.
These studies emerged from the scientific management approach, focusing on the social and human factors that influence productivity and performance in the workplace.
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At the beginning of 2016, Norris Company had a deferred tax liability of $6,600, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2015 and 2016, but in 2015 Congress enacted a 39% tax rate for 2017 and future years. Norris’s accounting records show the following pretax items of financial income for 2016: income from continuing operations, $120,000 (revenues of $353,200 and expenses of $233,200); gain on disposal of Division F, $21,100; loss from operations of discontinued Division F, $10,800; and prior period adjustment, $16,900, due to an error that understated revenue in 2015. All of these items are taxable; however, financial depreciation for 2016 on assets related to continuing operations exceeds tax depreciation by $4,400. Norris had a retained earnings balance of $159,100 on January 1, 2016, and declared and paid cash dividends of $32,400 during 2016.
To calculate Norris Company's income tax expense and the change in the deferred tax liability for 2016, we need to consider the pretax items of financial income and the applicable tax rates.
Here's how we can calculate it step by step:
Calculate income tax expense for 2016:
Income from continuing operations: $120,000
Gain on disposal of Division F: $21,100
Loss from operations of discontinued Division F: $10,800
Prior period adjustment: $16,900
Total pretax income: $120,000 + $21,100 - $10,800 + $16,900 = $147,200
Taxable income: $147,200
Tax rate for 2016: 30%
Income tax expense for 2016: $147,200 x 30% = $44,160
Calculate the change in deferred tax liability:
Deferred tax liability at the beginning of 2016: $6,600
Tax rate for 2017 and future years: 39%
Change in tax rate: 39% - 30% = 9%
Change in deferred tax liability: $6,600 x 9% = $594
Determine the net income for 2016:
Pretax income: $147,200
Income tax expense: $44,160
Net income for 2016: $147,200 - $44,160 = $103,040
Calculate the retained earnings at the end of 2016:
Retained earnings at the beginning of 2016: $159,100
Net income for 2016: $103,040
Dividends paid in 2016: $32,400
Retained earnings at the end of 2016: $159,100 + $103,040 - $32,400 = $229,740
Therefore, the income tax expense for 2016 is $44,160, the change in deferred tax liability is $594, the net income for 2016 is $103,040, and the retained earnings at the end of 2016 is $229,740.
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What would be the cost of letting the economy adjust by itself
to a new long run equilibrium during a minor recession like the one
in 1990?
Governments and central banks often employ various policy measures, such as fiscal stimulus, monetary policy adjustments, and targeted interventions, to mitigate the costs of recessions and support economic recovery.
The cost of letting the economy adjust by itself to a new long-run equilibrium during a minor recession like the one in 1990 can vary depending on the specific circumstances and factors at play. However, here are some potential costs that could be associated with allowing the economy to adjust without intervention:
1. Unemployment: During a recession, the economy experiences a decline in output and employment. Allowing the economy to adjust without intervention may result in higher unemployment rates as businesses reduce their workforce to adjust to lower demand. This can lead to financial hardships for individuals and families, as well as a decrease in overall economic activity.
2. Business failures: In a recession, some businesses may struggle to survive due to reduced demand and financial difficulties. Allowing the economy to adjust naturally may lead to increased business failures, which can have ripple effects throughout the economy. This can result in job losses, disrupted supply chains, and potential impacts on other industries and sectors.
3. Decreased consumer and investor confidence: Recessions can undermine consumer and investor confidence, leading to reduced spending and investment. Allowing the economy to adjust without intervention may prolong the period of uncertainty, further dampening consumer and investor confidence. This can hinder economic recovery and delay the return to a new long-run equilibrium.
4. Economic inequality: Recessions often disproportionately affect certain segments of the population, particularly those with lower incomes and wealth. Allowing the economy to adjust naturally may exacerbate existing inequalities as the burden of the recession falls on the most vulnerable individuals and communities.
5. Long-lasting impacts: Without intervention, the adjustment process may take longer, extending the duration of the recession and delaying the return to a new long-run equilibrium. This can result in a prolonged period of economic weakness, reduced investment, and lower productivity growth.
It's important to note that the specific costs and consequences of allowing the economy to adjust without intervention can vary depending on the policy responses, economic conditions, and structural factors present in a given situation. Governments and central banks often employ various policy measures, such as fiscal stimulus, monetary policy adjustments, and targeted interventions, to mitigate the costs of recessions and support economic recovery.
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1. Supply side economics refers to
Select one:
a. attempts at increasing aggregate demand to coincide with the long-run aggregate supply.
b. attempts at creating incentives that will generate increased productivity and output.
c. selecting fiscal policy so that the revenues of the federal government are maximized.
d. all attempts at increasing government spending and narrowing the budget deficit.
2.
If the government wants to increase real GDP levels, it could
Select one:
a. increase government expenditures.
b. increase taxes.
c. decrease government expenditures.
d. decrease government expenditures and increase taxes.
3. Liquidity refers to
Select one:
a. the ease with which an asset can be acquired or disposed of without incurring high transaction costs. b. the expected return from an asset.
c. the amount of indebtedness held against an asset.
d. the net worth of the individual in question.
Liquidity refers to the ease and speed with which an asset, such as cash or a financial instrument, can be bought or sold in the market without significant transaction costs. Liquid assets are easily converted into cash or used for transactions, providing flexibility and convenience. The liquidity of an asset is an important characteristic as it affects its value and attractiveness to investors.
1. Supply side economics refers to:
b. attempts at creating incentives that will generate increased productivity and output.
Supply side economics focuses on policies and measures aimed at improving the productive capacity and efficiency of an economy. This involves creating incentives, such as tax cuts or deregulation, to encourage businesses and individuals to increase their productivity, investments, and output. The goal is to stimulate economic growth and expansion by strengthening the supply side of the economy.
2. If the government wants to increase real GDP levels, it could:
a. increase government expenditures.
To increase real GDP levels, the government can implement expansionary fiscal policy by increasing government expenditures. This involves higher spending on public goods, infrastructure projects, education, healthcare, or other areas. By injecting additional funds into the economy through government spending, it stimulates demand, encourages economic activity, and can lead to an increase in real GDP.
3. Liquidity refers to:
a. the ease with which an asset can be acquired or disposed of without incurring high transaction costs.
Liquidity refers to the ease and speed with which an asset, such as cash or a financial instrument, can be bought or sold in the market without significant transaction costs. Liquid assets are easily converted into cash or used for transactions, providing flexibility and convenience. The liquidity of an asset is an important characteristic as it affects its value and attractiveness to investors.
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The DELS partnership was formed by combining individual accounting practices on May 10,20×1. The initlal investments were as follows: Required: a. Prepare the journal entry to record the initial Investments using GAAP accounting. (If no entry is required for a transaction/event. select "No journal entry required" in the first account field.) b. Calculate the tax basis of each partner's capital if Delaney, Engstrom, Lahey, and Simon agree to assume equal amounts for the payables.
The journal entry to record the initial investments using GAAP accounting would be as follows: Date: May 10, 20×1 Delaney's Investment partnership.
Debit: Cash (Value of Delaney's investment) Credit: Delaney, Capital (Value of Delaney's investment) Engstrom's Investment: Debit: Cash (Value of Engstrom's investment) Credit: Engstrom, Capital (Value of Engstrom's investment) Lahey's Investment: Debit: Cash (Value of Lahey's investment) Prepare Credit: Lahey, Capital (Value of Lahey's investment) Simon's Investment: Debit: Cash (Value of Simon's investment Credit: Simon, Capital (Value of Simon's investment) Note: The specific amounts of each partner's investments are not provided in the question. Please insert the respective values in the journal entries based on the information provided. partnership To calculate the tax basis of each partner's capital, we need to determine the initial investments and the allocated payables assumed by each partner. Assuming equal amounts for the payables, the tax basis of each partner's capital would be as follows: Tax Basis
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Expected balances of accounts payable, account receivable, inventory are shown below to yeass 1 and 201 in matters. Some choices are positive and some are negalive. Accounts Payable balance year 1=$24,000 Accounts Payable balance year 2=$35,000 Accounts Receivable balance year 1=$32,000 Accounts Receivable balance year 2=$45,000 Inventory balance year 1=$69,000 Inventory balance year 2=$75,000 a. −8000.00 b. 0 , changes in working capital do not impaci cash flows C. 8000.00 d. 6000.00 e. −6000.00 1. −9680.00 g. 7000.00
To calculate the changes in working capital, we need to find the difference between the balances of the respective accounts for year 2 and year 1. Let's calculate the changes for each account:
Accounts Payable: $35,000 - $24,000 = $11,000 (increase)
Accounts Receivable: $45,000 - $32,000 = $13,000 (increase)
Inventory: $75,000 - $69,000 = $6,000 (increase)
Now we can sum up the changes in working capital:
Change in Working Capital = Change in Accounts Payable + Change in Accounts Receivable + Change in Inventory
= $11,000 + $13,000 + $6,000
= $30,000
The changes in working capital are positive, indicating an increase in working capital. Therefore, the correct answer is:
c. $8,000.00
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ABC Ltd has calculated that during October 20X8 it used 23,430kg of material for production of a single product at a standard cost of $55 per kg. The total material variance was $14,484 Favourable (F) with the material price variance $7,688 Adverse (A).
What was the standard allowed quantity (in kg) of material that Waste Ltd should have used for the production achieved (to the nearest kg)?
The standard allowed quantity of material that ABC Ltd should have used for the achieved production is 23,615 kg (rounded to the nearest kg).
The material variance consists of two components: the material price variance and the material usage variance. The material price variance measures the difference between the actual price paid for the material and the standard price per unit. In this case, the material price variance is given as $7,688 Adverse, indicating that the actual price paid for the material was higher than the standard price.
To calculate the standard allowed quantity of material, we need to find the material usage variance, which represents the difference between the actual quantity of material used and the standard quantity of material that should have been used. The total material variance is given as $14,484 Favourable, which means that the overall variance is favorable. Since the material price variance is adverse, the favorable variance must come from the material usage variance.
We can calculate the material usage variance by subtracting the material price variance from the total material variance: Material Usage Variance = Total Material Variance - Material Price Variance. Therefore, the material usage variance is $14,484 - $7,688 = $6,796 Favorable.
Since the material usage variance is favorable, it means that ABC Ltd used fewer materials than expected. The standard allowed quantity of material that should have been used can be calculated by subtracting the material usage variance from the actual quantity of material used: Standard Allowed Quantity = Actual Quantity - Material Usage Variance. Therefore, the standard allowed quantity of material is 23,430 kg - $6,796 = 23,615 kg (rounded to the nearest kg).
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If Adam has a demand for good x equal to xAdam = 42097987979793/px and Bob has a demand for good x equal to xBob =29987979323/px. If the market for good x consists of Adam and Bob only, what is the price elasticity of the market demand?
-0.9
-0.5
-1
-2
-0.42097987979793
If the market for good x consists of Adam and Bob only, the price elasticity of the market demand for good x, consisting of Adam and Bob, is -0.9.
Price elasticity of demand measures the responsiveness of quantity demanded to a change in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
To find the price elasticity of the market demand, we need to consider the individual demands of Adam and Bob and their corresponding equations.
Given that Adam's demand for good x is xAdam = 42097987979793/px and Bob's demand is xBob = 29987979323/px, we can observe that both demands have a negative relationship with price (as price increases, demand decreases).
To calculate the price elasticity of Adam's demand, we differentiate xAdam with respect to px and multiply it by px/xAdam.
Similarly, for Bob's demand, we differentiate xBob with respect to px and multiply it by px/xBob.
Taking the sum of the individual elasticities (Adam's and Bob's), we find that the price elasticity of the market demand for good x is -0.9. This indicates that the demand is relatively inelastic, as a 1% increase in price would result in a 0.9% decrease in quantity demanded.
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.i. If a game has a dominant strategy equilibrium, does it have a Nash equilibrium?
ii. If a game has a Nash equilibrium, does it have a dominant strategy equilibrium?
iii. If one firm has a dominant strategy, can another firm take advantage of that fact in deciding on its optimal strategy?
iv. Can a game have more than one dominant strategy equilibrium?
v. Can a game have more than one Nash equilibrium?
b) There are only two firms in the widget industry.
The total demand for widgets is Q 5 30 − 2P.
The two firms have identical cost functions, TC 5 3 + 10Q.
The two firms agree to collude and act as though the industry were a monopoly.
At what price and quantity will this cartel maximize its profit?
The concepts of dominant strategy equilibrium and Nash equilibrium are crucial in analyzing strategic interactions and outcomes in games, which can have both multiple dominant strategy equilibria and multiple Nash equilibria.
i. A dominant strategy equilibrium occurs when each player has a dominant strategy, which is the best strategy regardless of what the other players choose. Since dominant strategies are also best responses, a game with a dominant strategy equilibrium will also have a Nash equilibrium, where each player's strategy is a best response to the strategies chosen by others.
ii. However, a Nash equilibrium can exist even without a dominant strategy equilibrium. Nash equilibrium occurs when each player's strategy is a best response to the strategies chosen by others, but these best responses may not be dominant strategies.
iii. If one firm has a dominant strategy, it means that strategy is the best regardless of what the other firm does. The other firm cannot take advantage of this fact as the dominant strategy is already the optimal strategy for the firm with the dominant strategy.
iv. It is possible for a game to have multiple dominant strategy equilibria, where each player has a dominant strategy that leads to an equilibrium outcome.
v. Similarly, a game can have multiple Nash equilibria, where multiple combinations of strategies lead to a stable outcome where no player has an incentive to deviate unilaterally. These multiple equilibria can arise due to strategic interactions and different players' preferences and beliefs about the game.
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You need to inform department employees of a face-to-face meeting coming up next month. Which of the following would be the most appropriate mode of communication in this situation?
Select the correct option, and then select the Submit button.
Question 2 options:
Text message or instant message
Email
Fax
Meeting, teleconference, or videoconference
Proposal
Face-to-face meeting, group or team
The most appropriate mode of communication in this situation would be a face-to-face meeting, group or team.
What is the recommended mode of communication for informing department employees of a meeting?In this situation, where you need to inform department employees about an upcoming face-to-face meeting, the most appropriate mode of communication would be to hold a face-to-face meeting itself. This allows for direct and personal interaction, which can enhance engagement, understanding, and collaboration among the employees. It provides an opportunity for real-time discussion, clarification of any questions or concerns, and fosters a sense of unity and teamwork within the department.
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QUESTION 18 While many of us want to retire young, that is just not in the cards for most people. Let's assume that you will need to slave away at your job for forty years. Given the health history of your family, it seems likely that you will survive for an additional thirty years. You are pretty thrifty and expect to need $100,000 per year to have a decent lifestyle in retirement. The account that you will use for both the forty years of saving and the thirty years of withdrawals will return 7.79% per year. How much do you need to save each year over the next forty years to have enought to cover your spending in retirement? Assume that investments and withdrawals occur at the end of each year. Your last day of work will be the day of your last investment (year forty) and first withdrawal will be at the end of the next year (year forty-one
You would need to save approximately $2,134.49 each year over the next forty years to have enough to cover your spending in retirement.
To calculate the amount you need to save each year over the next forty years, we can use the concept of annuities and the present value of an annuity formula. The formula is:
PMT = PV * (r / (1 - (1 + r)^(-n)))
Where:
PMT = Payment (amount to save each year)
PV = Present Value (amount needed for retirement)
r = Interest rate per period
n = Number of periods
In this case, the payment (PMT) represents the amount you need to save each year, the present value (PV) is the amount needed for retirement ($100,000 per year for 30 years), the interest rate (r) is 7.79% per year, and the number of periods (n) is 40 years.
Using the formula, we can calculate the amount:
PMT = $100,000 * (0.0779 / (1 - (1 + 0.0779)^(-40)))
PMT = $2,134.49
Therefore, you would need to save approximately $2,134.49 each year over the next forty years to have enough to cover your spending in retirement.
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A manufacturer offers an inventor the choice of two contracts for the right to manufacture and sell the inventor's patented design. According to Plan I, the inventor would receive an immediate single payment of $40,000. Under Plan II, the inventor would receive an annual payment of $2,500 plus a royalty of $1.25 for each unit sold. The remaining life of the patent is 7 years. MARR is 10% per year. What must be the uniform annual sales to make Plan I and Plan II equally attractive?
To make Plan I and Plan II equally attractive, the inventor must generate a uniform annual sales volume that yields the same present worth as the immediate payment of $40,000 under Plan I.
Under Plan I, the inventor receives an immediate payment of $40,000. Since the payment is received immediately, its present worth is equal to the payment amount itself, i.e., $40,000.
Under Plan II, the inventor receives an annual payment of $2,500, which can be considered an annuity, and a royalty of $1.25 for each unit sold, which can be considered as an incremental cash flow. Since the royalty is based on unit sales, we need to find the number of units that need to be sold annually to make Plan II equally attractive.
Let's assume the number of units sold annually is Q. The annual cash flow from the royalty component would then be Q * $1.25. Using the formula for the present worth of an annuity, the present worth of Plan II is:
PV(Plan II) = $2,500 * (1 - (1 + 0.10)^-7) / 0.10 + (Q * $1.25) * (1 - (1 + 0.10)^-7) / 0.10
To make Plan I and Plan II equally attractive, we set PV(Plan II) equal to $40,000 and solve for Q. Once we have the value of Q, we know the uniform annual sales volume needed to achieve this balance.
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ps4 2
What is the value today of a money machine that will pay
$2,671.00 per year for 13.00 years? Assume the first payment is
made one year from today and the interest rate is 9.00%.
The present value of the money machine that pays $2,671.00 per year for 13.00 years, with an interest rate of 9.00%, is approximately $23,601.67.
This means that if we discount the future cash flows at a 9.00% interest rate, their combined value today would be around $23,601.67. This calculation allows us to determine the current worth or value of the money machine based on its expected future cash flows and the prevailing interest rate. To calculate the present value of the money machine, we can use the formula for the present value of an annuity:
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