Computing Present Values of Single Amounts and Annuities Refer to Tables 1 and 2 in Appendix A near the end of the book to compute the present value for each of the following amounts. Round answers to the nearest dollar. a. $130,000 received 10 years hence if the annual interest rate is: 1. 10% compounded annually. Answer 2. 10% compounded semiannually. Answer b. $3,000 received at the end of each year for the next eight years discounted at 8% compounded annually. $Answer c. $900 received at the end of each six months for the next 15 years if the interest rate is 10% per year compounded semiannually. $Answer d. $260,000 received 10 years hence discounted at 10% per year compounded annually. $Answer

After hearing a knock at your front door, you are surprised to see the prize patrol from a large, well-known magazine subscription company. it has arrived with the good news that you are the big winner, having won $21 million. you have three options.(a) receive $1.05 million per year for the next 20 years.(b) have $8.25 million today.(c) have $2.25 million today and receive $750,000 for each of the next 20 years. your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments.

Effective capacity is the: a. capacity a firm expects to achieve given the current operating constraints. b. minimum usable capacity of a particular facility. c. sum of all the organization's inputs. d. average output that can be achieved under ideal conditions. e. maximum output of a system in a given period.

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?