What is the profit on new sales

Assignment Help Financial Management

Reference no: EM131884079

1. Mike Carlson will receive $12,000 a year from the end of the third year to the end of the 12th year (10 payments). The discount rate is 10%. The present value today of this deferred annuity is ____. (Please Explain Work Done To Get Answer)

A. $61,450

B. $42,185

C. $60,909

D. $55,379

2. To save for her newborn son's college education, Lea Wilson will invest $1,000 at the end of each year for the next 20 years. The interest rate if 10%. What is the future value? (Please Explain Work Done To Get Answer)

A. $8,514

B. $2,980

C. $63,440

D. $57,275

3. Price Corp. is considering selling to a group of new customers and creating new annual sales of $90,000. Five percent will be uncollectible. The collection cost on all accounts is 3% of new sales, the cost of producing and selling is 80% of sales, and the firm is in the 30% tax bracket. What is the profit on new sales? (Please Explain Work To Get Answer)

A. $7,560

B. $9,660

C. $7,245

D. $10,710

Reference no: EM131884079

Questions Cloud

Why is substance misuse among nurses a serious concern : Why is substance misuse among nurses a serious concern? What action is suggested when you are faced with an angry or hostile coworker?

What is your estimate of the stock current price : The company's stock has a beta of 1, the risk-free rate is 7%, and the market risk premium is 3%. What is your estimate of the stock's current price?

How technology can aid in repurposing everyday items : As a team leader in the Creative Department, you run bi-monthly strategy and brainstorming sessions with all agency employees.

Explain the role that motivation plays in individual : Discuss Maslow's hierarchy of needs and explain the role that motivation plays in individual and team performance. Analyze how different people are motivated.

What is the profit on new sales : The cost of producing and selling is 80% of sales, and the firm is in the 30% tax bracket. What is the profit on new sales?

Is pepsi the right brand for a cause marketing program : Is Pepsi the right brand for a cause marketing program like the Pepsi Refresh Project? Why or why not?

How do you evaluate five forces in that industry : How do you evaluate five forces in that industry? What internal resources and assets did FreshDirect have that gave it a competitive advantage?

Disucss the katz index of activities of daily living : Disucss the Katz Index of Activities of Daily Living and Tinetti Balance and Gait Evaluation. Make sure the older adult is clearly identified on the tools.

What is your holding period return : Two Years Later, the YTM has decreased to 8.3%. You just received a coupon payment and have decided to sell the bond. What's your holding period return?

User Account

All Pages