Determine the effect of the following on a cash basis taxpayer’s gross income for 2022:

a. Received his paycheck for $3,000 from his employer on December 31, 2022. He deposited the paycheck on January 5, 2023.

b. Received a dividend check from IBM on November 28, 2022. He mailed the check back the next day to IBM requesting that additional IBM stock be issued to him under IBM’s dividend reinvestment plan.

Answers

Answer 1

The $3,000 would increase the taxpayer's gross income for 2022.

The value of the additional IBM stock would be included in the taxpayer's gross income when it is eventually sold.

The effect on a cash basis taxpayer's gross income for 2022 would be as follows:
The paycheck of $3,000 received on December 31, 2022, would be included in the taxpayer's gross income for 2022 because it was received in that year, regardless of when it was deposited. So, the $3,000 would increase the taxpayer's gross income for 2022.
The dividend check received from IBM on November 28, 2022, would also be included in the taxpayer's gross income for 2022, even if it was mailed back the next day. The taxpayer's gross income would be increased by the amount of the dividend check. However, if the taxpayer requests additional IBM stock under IBM's dividend reinvestment plan, there would be no immediate effect on the taxpayer's gross income. The value of the additional IBM stock would be included in the taxpayer's gross income when it is eventually sold.

To know more about stock visit:

https://brainly.com/question/31940696

#SPJ11


Related Questions

Which of the following explains why local supply tends to be more elastic than global supply?
A. The statement is false; local supply tends to be less elastic than global supply?
B. Local suppliers are small in relation to the global market.
c. as price increases in a certain locale, goods can be brought in from other areas, whic is not possilbe on a global scale.
d. as price increases in a certain locale, it is often costly to transport more goods to that particular area, and hence supply is more elastic.

Answers

As price increases in a certain locale, goods can be brought in from other areas, which is not possible on a global scale. The correct option is C. This is one of the main reasons why local supply tends to be more elastic than global supply.

When prices increase in a certain locality, it becomes more profitable for suppliers in other areas to start supplying to that locality, as they can sell their goods at a higher price than they would normally sell in their own locality.

This increase in supply from other areas helps to meet the increased demand in the locality, thereby making the local supply more elastic.In contrast, global supply tends to be less elastic because it is often more difficult and costly to transport goods across long distances. This means that it is not always possible or feasible to bring goods from other parts of the world to meet increased demand in a particular locality. Additionally, there may be other factors such as trade barriers, transportation regulations, and customs procedures that can further restrict the flow of goods from one country to another, making global supply even less elastic.In summary, the ability to bring in goods from other areas is a key factor that makes local supply more elastic than global supply. This is because the availability of substitute goods from other areas helps to increase the overall supply of goods in a particular locality, thereby making it easier to meet the demand.

Know more about the global scale

https://brainly.com/question/14574898

#SPJ11

A Bank with the following capital levels: common equity of 47,000, Tier 1 of 38,000, Tier 2 of 17,000. If total assets are 850,000 and risk adjusted assets are 650,000, the capital classification of the bank is

Answers

The capital classification of the bank would be "Adequately Capitalized" as its Tier 1 capital ratio.

To determine the capital classification of the bank, we need to compare its capital levels to the risk-adjusted assets. The capital classification is typically based on regulatory requirements and ratios set by the relevant financial authorities.

One common capital adequacy ratio used for classification is the Tier 1 capital ratio.

The Tier 1 capital ratio is calculated by dividing Tier 1 capital (including common equity) by risk-adjusted assets. Let's calculate the Tier 1 capital ratio:

Tier 1 capital ratio = (Tier 1 capital / Risk-adjusted assets) * 100

In this case:

Tier 1 capital = 38,000

Risk-adjusted assets = 650,000

Tier 1 capital ratio = (38,000 / 650,000) * 100

= 5.846%

Now, let's determine the capital classification based on the Tier 1 capital ratio:

Well-Capitalized: Tier 1 capital ratio ≥ 6%

Since the calculated Tier 1 capital ratio is 5.846%, it does not meet the well-capitalized threshold.

Adequately Capitalized: Tier 1 capital ratio ≥ 4%

The calculated Tier 1 capital ratio is above the adequately capitalized threshold, which is 4%.

Undercapitalized: Tier 1 capital ratio < 4%

Since the calculated Tier 1 capital ratio is above 4%, the bank is not classified as undercapitalized.

Therefore, based on the given information, the capital classification of the bank would be "Adequately Capitalized" as its Tier 1 capital ratio exceeds the minimum regulatory requirement of 4%.

To learn more about capital, refer below:

https://brainly.com/question/32408251

#SPJ11

today's holistic marketers view the entire supply chain as a ________. group of answer choices value network profit center cost center healthy competitor holdover from the pre-internet era

Answers

Today's holistic marketers view the entire supply chain as a value network.

A value network refers to the interconnected system of organizations, suppliers, distributors, and other entities involved in the production, distribution, and consumption of a product or service.

Holistic marketers recognize that value is created not just within their own organization but throughout the entire supply chain.

They understand that collaboration and coordination among the various stakeholders in the value network are essential to delivering superior value to customers. In a value network, each participant contributes its expertise and resources to enhance the overall value proposition.

This approach emphasizes the importance of building strong relationships and partnerships with suppliers, distributors, retailers, and other intermediaries to ensure a seamless flow of products or services.

By viewing the entire supply chain as a value network, holistic marketers can identify opportunities for collaboration, process improvement, cost optimization, and innovation, ultimately leading to increased customer satisfaction and business success.

To know more about marketers click here

brainly.com/question/4129536

#SPJ11

Final answer:

Holistic marketers view the entire supply chain as a value network, which reflects the interconnected relationships among suppliers, customers, and competitors involved in the creation and delivery of a product or service of value.

Explanation:

Today's holistic marketers view the entire supply chain as a value network. The concept of the value network is related to shifts in technology and globalization that have redefined the market. Businesses no longer operate in isolation, but rather they function in a network of relationships with suppliers, customers, and even competitors on a global scale.

This network is created due to the interconnectivity and interdependencies that exist in the process of creating and delivering a product or service of value. For instance, when producing an iPhone, involved processes include designing and engineering in the United States, supplying parts from Korea, assembling the parts in China, and advertising and marketing in the United States. Each element in this chain adds value to the product, thus contributing to an interconnected value network rather than individual, independent operations.

Therefore, every element and action in this network can impact the other components, making it critical for businesses to take a holistic view of this value network and manage their relationships and operations effectively within this network.

Learn more about Value Network here:

https://brainly.com/question/33005552

#SPJ2

Country c used to be a command economy but is now in the process of altering its economic system to embrace free-market capitalism. it is privatizing businesses that the state once owned, granting more political and economic freedoms, boosting trade with western europe, and seeking foreign investment. its gdp is improving and has reached $9,000 per capita. it is also improving its transit and financial infrastructure. independent banks and a stock market have just been created with imf loan assistance. which factor places this nation in the transitioning category? multinational corporations operate within its borders. it is shifting from a planned to a free-market economy. it has recently increased trade with western europe. it has a rising gdp.

Answers

Answer:

Which factor places this nation in the transitioning category?

Multinational corporations operate within its borders.

It is shifting from a planned to a free-market economy.<<<CORRECT

It has recently increased trade with Western Europe.

It has a rising GDP.

Explanation:

2022 EDGE CORRECT

Answer:

b

Explanation:

oink moo oink piggy moo cow

Tim and Rebecca just had a baby. They received money as baby gifts and want to put it away for the baby’s education. Which of the following is likely to have the highest growth over the next 18 years?

Answers

A bank account where you can collect interest by leaving money in there for 18 years it will just be collecting all that interest

Tim and Rebecca just had a baby. They received money as baby gifts and want to put it away for the baby’s education. The stock has the highest growth over the next 18 years.

What does high-growth stock mean?

Growth stocks are those businesses whose sales and earnings are anticipated to increase more quickly than the market as a whole. Growth stocks frequently have high P/E ratios and appear to be expensive, but if the company maintains its rapid growth, which will increase the share price, such valuations may actually be reasonable.

The first step in long-term financial planning for your child should be to either draught a will or make changes to the one you already have. Your will should specify what happens to your estate in addition to designating who will be your child's legal guardian in the event of your passing.

Learn more about high-growth stock here:

https://brainly.com/question/29095455

#SPJ2

why is the earth round why not a square or a triangle

Answers

Answer:

because science.

Explanation:

a square shaped earth would be cool tho

It’s the force caused when earth rotates that’s why it’s round altho it’s not perfectly round.


The mass is distributed unevenly within the planet, and the greater the mass is the stronger it gravitational pull is creating bumps around the globe.
If this helped mark me brainliest pls!

what is the importance of inference, psychological safety, and team effectiveness in the design thinking process?

Answers

Design thinking encourages collaboration, flexibility, curiosity, and positivity, creating happy teams and positively influencing the outcome. Through this process, team members feel valued and clients know that their feedback is taken into consideration.

Design is an art shape, a method of human expression that follows a gadget of tremendously evolved processes so that you can imbue objects, performances, and experiences with significance. like any artwork bureaucracy, the layout has the capacity to clear up issues, but there may be no guarantee that it's going to.

An critical part of the definition of the word layout is the reason: to intend for a particular motive, to assign in notion or purpose; a reason or plan of action. design without motive is design without that means or purpose. We accept as true with without a cause there's no design. An instance of design is a plaid sample on a pair of pants.

Learn more about Design here: https://brainly.com/question/1020696

#SPJ1

Which one is the best choice. Please explain why. I’ll give extra points.

Which one is the best choice. Please explain why. Ill give extra points.

Answers

Answer:

10

Explanation:

Surplus for Donovan: 10 - 4.50 = 5.50

Surplus for Rudy: 8 - 4.50 = 3.50

Surplus for Mike: 6 - 4.50 = 1.50

Surplus for Royce: 4 - 4.50 = -0.50

Sum of all surpluses: 5.50+3.50+1.50-0.50=10

in the hvacr trade tubing is joined together by what?

Answers

Answer:

Copper tubing is joined using flare connection, compression connection, pressed connection, or solder. Copper offers a high level of corrosion resistance but is becoming very costly.

How much wil Sarah have to invest today? If Sarah eained an arrual retum of 14 percent, how soon could she then retre? a. If Sarah can eam 4 percent annuafy for the next 35 years, the amount of merey she will have to invest today is: (Round to the nearest cent)

Answers

The amount of money Sarah will have to invest today depends on the desired future value and the interest rate. Without specific values, the exact amount cannot be determined.

Where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.

In this case, Sarah can earn 4 percent annually for the next 35 years. Assuming she wants to have a certain amount of money in the future, we need to determine the present value.

Let's assume Sarah wants to have $1,000 in the future. Plugging in the values into the

Learn more about amount here;

https://brainly.com/question/32453941

#SPJ11

Suppose you work for a bank and are responsible for determining whether you should give someone credit. Create a list of the top three questions you would
ask prospective borrowers and post them to the discussion board. Make sure to explain why you think these three questions are important in determining
whether or not a potential customer is a good credit risk.

Answers

Answer:

-How much money do you need?

-How much income do you make?

-How much debt do you have?

Explanation:

The top three questions that I would  ask prospective borrowers are:

-How much money do you need?

This question allows the lender to know the amount of money the borrower requires and this is crucial to make an evaluation with the income and debts to determine if the lender would approve the loan. For example, a borrower may need an amount that he can easily pay back with his salary.

-How much income do you make?

This question is important to the lender because it allows to find out if the borrower's income would allow him/her to make the monthly payments which decreases the risk.

-How much debt do you have?

It is important to know the amount of debt the borrower has because the higher amount of debt he/she has, it would be harder to pay the loan and evaluating this allows to decrease the risk of the borrower not paying back.

Two countries, Country A and Country B, produce petroleum and seafood. A 4-column table has 2 rows. The first column is labeled country with entries Country A, Country B. The second column is labeled Cost (units) with entries 1, 1. The third column is labeled Petroleum (units) with entries 16, 8. The fourth column is labeled Seafood (units) with entries 8, 8. Based on the data in the table, has the absolute advantage in producing petroleum.

Answers

Answer:

Country A

Explanation:

Two countries, Country A and Country B, produce petroleum and seafood. A 4-column table has 2 rows. The

Based on the data in the table, has the absolute advantage in producing petroleum is country A.

What is absolute advantage?

A country has an absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries.

Looking at the table, Country A, produces 16 units of pertroluem while Country B produces 8 units. Thus, Country A has an absolute advantage.

To learn more about absolute advantage, please check: https://brainly.com/question/25812820

At what age can you start working?

Answers

Answer:

Explanation:

depends on where you live

Explanation:

It really depends on the jobs and requirements but you can USUALLY do small work like walking a dog or babysitting at 13-14

the hot dog is a sandwich yes or no

Answers

Answer: Because theres buns

sorta

Explanation:

Which statement best describes how you use email?
A. I get a lot of emails but I don't usually respond.
B. I write emails for personal use often but little for work or school.
C. I use email as my main source of work or school communication and but not for personal use.
D. I use emails for all my communication; work, school, and personal use.
E. I haven't used email yet.​

Answers

if anything it will be d

the most serious problems with accounting systems appear to occur when managers attempt to use accounting information that was developed for

Answers

The most serious problems with accounting systems often arise when managers try to use accounting information that was originally designed for a different purpose. These problems can occur when attempting to make strategic decisions, evaluate performance, or assess the financial health of a company. In such cases, relying solely on traditional accounting metrics may lead to misleading or incomplete insights. To address these challenges, managers should consider the limitations of accounting information and supplement it with other sources of data and analysis to make well-informed decisions.Accounting systems are primarily designed to capture and report financial transactions and provide a historical record of a company's financial activities. While they are essential for financial reporting and compliance purposes, accounting systems may not always align with the needs of managers for decision-making and performance evaluation.

When managers attempt to use accounting information for strategic decision-making, they may encounter limitations. Accounting systems typically focus on past performance and may not provide forward-looking insights or consider qualitative factors that are critical for strategic decision-making. For example, accounting information alone may not adequately capture market trends, customer preferences, or technological advancements.

When evaluating performance, relying solely on accounting measures can lead to incomplete assessments. Traditional accounting metrics, such as net income or return on investment, may not reflect the true value created by a company or the effectiveness of its operations. They may overlook non-financial factors, such as customer satisfaction, employee engagement, or innovation, which can significantly impact long-term success.

Assessing the financial health of a company solely based on accounting information can also be problematic. Financial statements may not fully capture the value of intangible assets, such as intellectual property or brand reputation. Additionally, accounting standards and practices can vary across industries and countries, making it challenging to compare financial information across companies or sectors accurately.

To address these problems, managers should recognize the limitations of accounting information and consider it as one piece of the puzzle. They should supplement accounting data with other sources of information, such as market research, customer feedback, employee surveys, and industry benchmarks, to gain a more comprehensive understanding of the business. This holistic approach enables managers to make more informed decisions and evaluate performance more accurately.

learn  more about accounting here:brainly.com/question/5640110

#SPJ11

Which of the following is a characteristic of economic services:
A) tangible
B) freely available to everyone
C) useful
D) non-transferable

Answers

Answer:

useful

Explanation:

i got it from USA test prep

Today's forecast equals yesterday's actual demand" is referred as A. a moving average O B. exponential smoothing ° C. the naive approach. O D. the Delphi method

Answers

The naive approach assumes that the future demand for a product will be equal to the demand for the same product in the previous period.

The naive approach is a simple forecasting technique that is widely used in business and economics. It is based on the idea that past demand is a good predictor of future demand, and therefore assumes that the future demand for a product will be the same as the demand for the same product in the previous period. Although this method is easy to use, it can be inaccurate if there are significant changes in the market or external factors that affect demand. Therefore, it is often used as a starting point for more complex forecasting methods that take into account a wider range of factors that can influence demand.

Learn more about business and economics here:

https://brainly.com/question/15265265

#SPJ11

Final answer:

The naive approach is a simple forecast technique where today's forecast equals yesterday's demand. This is typically used as a basis for more sophisticated forecast techniques, or when data availability or predictability are low.

Explanation:

The approach in which

today's forecast equals yesterday's actual demand

is referred to as the

naive approach

in forecasting. This approach is often used as a starting point for other forecast techniques, or when no other data is available or predictions are highly uncertain. Its simplicity lies in the assumption that the best predictor of what happens tomorrow is what happened today. However, it may not always be accurate, since it doesn't contemplate any change or trends in demand patterns.

Learn more about naive approach here:

https://brainly.com/question/32397608

#SPJ6

if repossessed collateral is sold or otherwise disposed of by the creditor, then the time, place, manner, and method of disposal must be

Answers

If repossessed collateral is sold or disposed of by the creditor, then there are specific guidelines that must be followed.

The time, place, manner, and method of disposal must all be reasonable and fair to both the creditor and the debtor. The creditor must act in good faith and must not purposely cause the collateral to sell for a low price.

Additionally, the creditor must provide the debtor with notice of the intended sale or disposal, including the date, time, and place of the sale, as well as information on how the sale will be conducted.


The method of disposal will depend on the type of collateral involved. For example, a car may be sold at auction, while jewelry or artwork may be sold privately. In all cases, the creditor must make a reasonable effort to obtain the best possible price for the collateral. Any money left over after the sale of the collateral must be returned to the debtor after any outstanding debts have been paid.

Overall, the time, place, manner, and method of disposal must be fair and reasonable in order to protect the interests of both the creditor and the debtor.

To know more about repossessed collateral refer here:
https://brainly.com/question/16974725#

#SPJ11

Direct customer interviews are a challenging but effective way to verify the findings of a customer journey map.

a. True
b. False

Answers

Direct customer interviews are a challenging but effective way to verify the findings of a customer journey map is true.

A Customer (also known as a client, buyer, or purchaser) is the person who receives an item, service, product, or idea from a seller, vendor, or supplier through a financial transaction or exchange for money or some other valuable consideration. Early communities relied on a favor-based gift economy. Later, when commerce grew, fewer lasting human relationships were formed, based on temporary wants rather than long-term social desires.

Customers are those who buy goods and services, whereas clients are those who receive specialized advise and answers. Despite the fact that such distinctions have no current semantic weight, agencies such as legal companies, film studios, and health care providers prefer client, whereas grocery stores, banks, and restaurants prefer customer.

To Learn about customer visit :

brainly.com/question/13472502

#SPJ4

Which of these are required to calculate the current value of a bond? Check all that apply.
-applicable market rate
-coupon rate
-par value
-Price at the time of bond issue
-Time remaining to maturity

Answers

To calculate the current value of a bond, you need to know the applicable market rate, the coupon rate, the par value, the price at the time of bond issue and the time remaining to maturity.

The market rate is the current rate of return that investors receive when they purchase bonds in the form of interest payments. The set interest rate that the bond's issuer must pay to the bondholder is known as the coupon rate.

The price at the time of bond issuance is the amount investors paid for the bond when it was initially issued. The par value is the bond's face value.

Last but not least, the length of time left before the bond matures and is returned to the bondholder. You can determine the current value of a bond by knowing all of these elements.

To learn more about coupon rate visit:

https://brainly.com/question/18651252

#SPJ4

if offered, would you be interested in blank checks to use for cash advances?

Answers

Yes, advantages include flexibility and quick access to funds for unexpected expenses or emergencies.

Blank checks for cash advances offer advantages such as flexibility and quick access to funds. With blank checks, you have the flexibility to use the funds for various purposes, whether it's covering unexpected expenses, making purchases, or dealing with financial emergencies.

Additionally, having blank checks on hand can be convenient when you need immediate access to cash, as you can simply write a check instead of going through a loan or credit card application process. However, it's important to exercise responsible financial management and consider potential risks such as high-interest rates and the need to avoid impulsive or unnecessary spending.

To learn more about flexibility follow the link:

https://brainly.com/question/30586245

#SPJ4

company manufactures wheel rims. the controller expects the following abc allocation rates for :

Answers

ABC allocation rates are a crucial aspect of cost accounting in manufacturing companies. The controller expects the following ABC allocation rates for the company that manufactures wheel rims.

The rates are for direct materials, direct labor, and overhead costs. Direct materials are expected to be allocated based on the weight of the materials used, while direct labor will be allocated based on the number of hours worked. Overhead costs, which include manufacturing facility expenses, utilities, and other indirect expenses, will be allocated based on machine hours used. By using these ABC allocation rates, the company can accurately track and allocate costs to the production of wheel rims, providing a more accurate view of the true cost of production and helping management make informed decisions.

To learn more about Overhead costs, visit:

https://brainly.com/question/13384595

#SPJ11

HAS ANYONE DID THESE TWO EXAMS?

exam lesson name: retail industry fundamentals credential exam part 2
& part 3​

Answers

An assertion distinguishing (1)the retailers target market (2) the configuration the retailer intends to use to fulfill the objective business sectors needs and (3)the bases on which the retailer intends to fabricate a feasible upper hand.

A new product must either solve a problem or meet a need. That need or issue is most likely not all inclusive except if it arrives at the degree of indoor pipes. It is more likely that a subset of customers require it, such as vegetarians who care about the environment, science nerds, or outdoor enthusiasts. It might interest a young person or a moderately aged proficient, a deal tracker or an upstart.

Not many items today are intended to engage without question, everybody. The upscale and eco-conscious woman who is willing to pay more for quality is the target market for the Aveda Rosemary Mint Bath Bar, which retails for $23 per bar at Aveda beauty stores. Cle de Peau Beaute Synactif Cleanser retails for $110 a bar and is promoted to well off, style cognizant ladies who will pay a premium for an extravagance item. On A mazon, an eight-pack of Dial soap costs less than $5 and is known to be effective.

Learn more about Retailers:

https://brainly.com/question/29560034

#SPJ4

Complete question;

What do you mean by retail industry fundamentals and Retail Strategy?

Which is an example of specialty media?


a) T-shirts with a store logo on them
b) A satellite television ad
c) A "midnight madness" sale

Answers

Answer:

a) T-shirts with a store logo on them

Hope it helps...

True or false: The vision of an organization describes its very purpose or reason for existence; the mission describes what the organization hopes to be in the future.

Answers

Answer:

- True

Explanation:

a document that initiates shipment of goods and indicates the description of the merchandise, the quantity shipped, and customer name and address is the:

Answers

The document that initiates shipment of goods and indicates the description of the merchandise, the quantity shipped, and customer name and address is known as a bill of lading.

A bill of lading is a legal document that serves as proof of shipment of goods from a carrier to a shipper. The term is derived from the word "lade," which means "to load." A bill of lading typically includes information such as the type and quantity of goods, the name of the shipper, the name of the carrier, the destination, and the delivery instructions.A bill of lading is not only a receipt for the goods being shipped, but it also serves as a contract between the shipper and the carrier. The document outlines the carrier's obligation to deliver the goods to their destination in the same condition they were in when they were loaded onto the carrier's transport vehicle.

In addition, the document indicates the customer name and address, the quantity shipped, and the description of the merchandise.

Learn more about bill of lading visit:

brainly.com/question/28231278

#SPJ11

Four different stores have the same watch on sale. The original price and discounts offered by each store are listed below. Rank the stores from the cheapest to most expensive sale price of the watch. Store A: price $129. 99 and discount of 25% Store B: price $119. 99 and discount of 15% Store C: price $115. 99 and successive discounts of 5% and 5% Store D: price $109. 99 and discount of 10% a. A, B, C. D b. A, B, D, C c. A, C, D, B d. A, D, B, C.

Answers

The stores ranked from the cheapest to most expensive sale price for the watch is :  A, D, B, C.

A discount reduces the price of an item. The formula that can be used to determine the price after a discount is: initial price x (1 - discount rate)

Price after discount

Store A: $129.99 x (100 - 25%)

$129.99 x 0.75 = $97.49

Store B: $119.99 x (100 - 15%)

$119.99 x 0.85 = $101.99

Store C:

Price after the first discount = $115 x (100 - 5%)

115 x 0.95 = $109.25

Price after the second discount = $109.25 x (100 - 5%)

$109.25 x 0.95 = 103.79

Store D:

$109.99 x (100 - 10%)

$109.99 x 0.90 = $98.99

To learn more about how to calculate discounts, please check: https://brainly.com/question/9350849

A producer is proposing that a policyowner replace an existing individual health insurance policy with a new one. Under the new contract, a pre-existing conditions exlusion

Answers

Under the new contract, pre-existing conditions exlusion may reduce the insured's benefits.

What is an insurance policy?

The insurance policy, which establishes the claims that the insurer is legally obligated to pay, is a contract (often in standard form) between the insurer and the policyholder. The insurer guarantees to reimburse losses brought on by risks covered by the policy language in return for an upfront payment known as the premium.

Insurance contracts have several aspects not present in many other types of contracts since they are created to address certain needs. Insurance policies contain boilerplate language that is common to many different types of insurance policies because they are standard forms.

To learn more about Insurance policies visit:

https://brainly.com/question/24984403

#SPJ4

Your firm has been hired to develop new software for the​university's class registration system. Under the​ contract, you will receive $499,000 as an upfront payment. You expect the development costs to be $436,000 per year for the next 33 years. Once the new system is in​ place, you will receive a final payment of $849,000 from the university 44 years from now.

What are the IRRs of this​ opportunity?(Hint: Build an Excel model which tests the NPV at​ 1% intervals from​ 1% to​ 40%. Then zero in on the rates at which the NPV changes​ signs.)

If your cost of capital is 10%​, is the opportunity​ attractive? Suppose you are able to renegotiate the terms of the contract so that your final payment in year 44 will be $1.2 million

What is the IRR of the opportunity​ now?

Is it attractive at the new​ terms?

Answers

The original opportunity was not attractive at a cost of capital of 10%.

To calculate the IRR of the opportunity, we need to find the discount rate that makes the net present value (NPV) of the cash flows equal to zero.

Using Excel or a financial calculator, we can calculate the IRR by inputting the cash flows as follows:

Year 0: -$499,000 (upfront payment)

Years 1-33: -$436,000 (annual development costs)

Year 44: $849,000 (final payment)

Using the IRR function in Excel, we can find the IRR of the opportunity to be approximately 7.92%.

Next, let's analyze the opportunity's attractiveness at a cost of capital of 10%. If the IRR is higher than the cost of capital, the opportunity is considered attractive. In this case, the IRR (7.92%) is lower than the cost of capital (10%), indicating that the opportunity is not attractive under the original terms.

Now, let's consider the renegotiated terms where the final payment in year 44 is $1.2 million. Recalculating the IRR with this new cash flow:

Year 0: -$499,000 (upfront payment)

Years 1-33: -$436,000 (annual development costs)

Year 44: $1,200,000 (new final payment)

Using the IRR function again, we find that the IRR of the opportunity with the new terms is approximately 9.25%.

Analyzing the attractiveness at a cost of capital of 10%, we see that the IRR (9.25%) is higher than the cost of capital (10%). Therefore, the opportunity is considered attractive under the new terms.

In summary, the original opportunity was not attractive at a cost of capital of 10%. However, with the renegotiated terms, the opportunity becomes attractive with an IRR of 9.25%.

To know more about NPV click here:

brainly.com/question/28590944

#SPJ11

Other Questions
What is an example of a positive conformity!! TRUE/FALSE winds are created when cold air descending the sheltered (leeward) side of the rockies is warmed by compression. Which of the following sentences use homonyms correctly? Select all that apply.It was quite a feat for the boy to climb the mountain.Miss Rose put flower in the cake batter.They decided to flee from the accident.The floor creeks every time we walk across it. can i get some help : A relation contains the points (1, 2), (2, -1), (3, 0), (4, 1), and (5, -1). Which statement accurately describes this relation? Which picture best shows how a plant grows in response to sunlight? Use the graph to predict the number of hours it would take to drive 180 miles. Here, do the following: (1) Name three professions/careers/jobs/situations, where knowing exactly how much of something that you start with and keeping things in balance is extremely important. (2) Name the importance of balance in that job/situation and finally, (3) name one bad thing that can happen if balance is not maintainedExample Job/SituationAvery adulting with his digital walletImportance of Measurement for Job/ Situation 1: Not doing this well can lead to an eviction, past due bills, and bad creditWhat bad thing could happen if things are not kept in balance for Job/Situation 1?Credit could decrease, he could get evicted, his heat will not work due to non-payment.Your Turn: Job/Situation 1: Importance of Measurement for Job/ Situation 1: What bad thing could happen if things are not kept in balance for Job/Situation 1?Job/Situation 2: Importance of Measurement for Job/Situation 2: What bad thing could happen if things are not kept in balance for Job/Situation 2?Job/Situation 3: Importance of Measurement for Job/Situation 3: What bad thing could happen if things are not kept in balance for Job/Situation 3? which two commands, when configured on router r1, fulfill these requirements? (choose two.) packets towards the entire network 2001:db8:2::/64 must be forwarded through router r2. packets toward host 2001:db8:23::14 preferably must be forwarded through r3. a. ipv6 route 2001:db8:23::/128 fd00:12::2 b. ipv6 route 2001:db8:23::14/128 fd00:13::3 c. ipv6 route 2001:db8:23::14/64 fd00:12::2 d. ipv6 route 2001:db8:23::/64 fd00:12::2 e. ipv6 route 2001:db8:23::14/64 fd00:12::2 200 what is a motet from the late middle ages A toy balloon blown upto 10 C has avolume 900 cc. At this stage the balloonis distended to 7/8 of its manimum stretching capacity. Will the balloon burst itit is brought to a room having temperature25c. If not calculate the temperatureat which balloon burst? What needs to be done to fight climate change? A company is about to invest in a joint venture research and development project with another company. The project is expected to last eight years, but yearly payments the company makes will begin immediately (i.e., a payment is made today, and the last payment is eight years from today). Salaries will account for S40 000 of each payment. The remainder of each payment will cover equipment costs and facility overhead. The initial (immediate) equipment and facility cost is $26 000. Each subsequent year the figure will drop by S3000 until a cost of S14 000 is reached, after which the costs will remain constant until the end of the project. (a) Draw a cash flow diagram to illustrate the cash flows for this situation. (b) At an interest rate of 7%, what is the total future worth of all project payments at the end of the eight years? I have to describe the angles and the sides of the triangle I don't have a clue Evaluate.7!5!2!A)1B)21C)42 In its earliest years, the gay rights movement especially emphasized:the importance of gays "coming out."the need for more funding for AIDS research.the passage of hate-crimes legislation.the push to legalize gay marriage.getting recognition of gay contributions to American history. To maintain a balanced diet, ensure that your food contains minimal amounts of certain ingredients. Which ingredient is missing in the sentence below?Ones diet should include small amounts of fat, , and sugar.. what is the largest value among $\operatorname{lcm}[12,2],$ $\operatorname{lcm}[12,4],$ $\operatorname{lcm}[12,6],$ $\operatorname{lcm}[12,8],$ $\operatorname{lcm}[12,10],$ and $\operatorname{lcm}[12,12]?$ express your answer as an integer. .Which Indian community do you think Henry liked living with better & why? It is recommended by the cdc that teens get ______ minutes of physical activity a day.