Considering investing in annuity contract

Assignment Help Operation Management
Reference no: EM13906122

Konkol Company is considering investing in an annuity contract that will return $46,000 annually at the end of each year for 15 years. What amount should Konkol Company pay for this investment if it earns a 7% return, rounded to whole dollars?

Reference no: EM13906122

Questions Cloud

Freehand sketches used to determine room locations : Freehand sketches used to determine room locations, flow of traffic, and spatial relationships
Kept as ending balance infinished goods inventory : Finished goods inventory at the end of 2013 was 10,000 units. On average, 25 percentof the futons to be sold in the next month are produced and kept as ending balance infinished goods inventory. The planned selling price is $150 per unit.
Different types of loans : Dwayne runs a money lending business in which he offers different types of loans, such as personal loan, car loan, and home loan, on high rate of interest to those individuals who cannot get a loan from the commercial banks. As part of his busines..
Describe the target market : Describe the target market
Considering investing in annuity contract : Konkol Company is considering investing in an annuity contract that will return $46,000 annually at the end of each year for 15 years. What amount should Konkol Company pay for this investment if it earns a 7% return, rounded to whole dollars?
Determine the cost recovery deduction : Bonnie purchased a new business asset (five-year property) on March 10, 2013, at a cost of $30,000. She also purchased a new business asset (seven-year property) on November 20, 2013, at a cost of $13,000. Bonnie did not elect to expense either of th..
Cobe company has already manufactured : Cobe Company has already manufactured 28,000 units of Product A at a cost of $ 28 per unit.
How many futons are budgeted to be produced : Jan 40,000 February 50,000 March 60,000 Finished goods inventory at the end of 2013 was 10,000 units. on average 25 percent of the futons to be sold in the next month are produced and kept as ending balance in finished goods inventory. The planned se..
Prepare a correct income statement : The income statement of Garska Co. for the month of July shows net income of $2,720 based on Service Revenue $7,350; Salaries and Wages Expense $2,910; Supplies Expense $950; and Utilities Expense $770. Prepare a correct income statement for July 201..

Reviews

Write a Review

 

Operation Management Questions & Answers

  Two brands of erp software to the executive

Provide an overview of two brands of ERP software to the executive.

  Change period based question

Sandy notices a dog tied to a chain behind a fence and recognizes it as belonging to an acquaintance who lives a couple of blocks away. Sandy goes to the acquaintance's house and says, "Your dog is tied up in someone's yard, and for $100 I will tell ..

  Manufactures small diameter potable polyethylene water pipe

Consider the following situation. Tricon Piping Systems manufactures small diameter potable polyethylene water pipe and achieves distribution primarily through plumbing wholesalers. The firm also sells directly to large construction companies, often ..

  What is its expected monetary value

Michael Dell, president of Dell Computers, Inc., has two design options for his new high resolution flat screen monitors for CAD workstations. The life cycle sales forecast of the monitors is 100,000 units. We ignore any disposal cost in this problem..

  What are the key elements to a company having successful

Operating a business in an ethical manner takes time, effort and commitment. What are the key elements to a company having successful organizational ethics? What can we do as managers to encourage ethical behavior and to raise ethical standards in..

  Estimate the optimal solution

Consider the following project schedule, If the optimal corner point lies at the intersection of constraints (2) and (3), what is the optimal solution (X, Y)?

  Dysfunctional aspects of the organization''s culture

Examine the most functional and dysfunctional aspects of the organization's culture. Describe the methods used to socialize new employees or members into the organizational culture.

  Faced with brutal price competition from low cost carriers

Faced with brutal price competition from low cost carriers, Goliath Airlines is hemorrhaging money. The airline’s president, Fred Goliath, calls the mechanic’s union representative into his office and after describing the company’s truly desperate fi..

  Why would investment in risk free securities

Please explain this sensitivity report to me. When do we have to resolve due to tight constraints. What do the -0-'s mean on the second portion of the report? Why would investment in risk free securities not increase even if interest rate went to 30%..

  A small independent amusement park collects data

A small independent amusement park collects data on the number of cars with out of state license plates. The sample size is fixed at n=25 each day. Data from the previous 10 days indicate the following number of out of state license plates:

  The tennis club has a number of inventories it must manage

The tennis club has a number of inventories it must manage and must minimize all its expenses to stay in business. For each inventor, describe a goo management policy or system

  Vietnam war that he considers responsible for once again

Vietnam war that he considers responsible for once again making the discipline of morality central to the military curriculum.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd