The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded quarterly, so that each employee will receive a $1,200 bonus?
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The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded quarterly, so that each employee will receive a $1,200 bonus?
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- Now assume that it is several years later. The brothers are concerned about the firm’s current credit terms of net 30, which means that contractors buying building products from the firm are not offered a discount and are supposed to pay the full amount in 30 days. Gross sales are now running $1,000,000 a year, and 80% (by dollar volume) of the firm’s paying customers generally pay the full amount on Day 30; the other 20% pay, on average, on Day 40. Of the firm’s gross sales, 2% ends up as bad-debt losses. The brothers are now considering a change in the firm’s credit policy. The change would entail: (1) changing the credit terms to 2/10, net 20, (2) employing stricter credit standards before granting credit, and (3) enforcing collections with greater vigor than in the past. Thus, cash customers and those paying within 10 days would receive a 2% discount, but all others would have to pay the full amount after only 20 days. The brothers believe the discount would both attract additional customers and encourage some existing customers to purchase more from the firm—after all, the discount amounts to a price reduction. Of course, these customers would take the discount and hence would pay in only 10 days. The net expected result is for sales to increase to $1,100,000; for 60% of the paying customers to take the discount and pay on the 10th day; for 30% to pay the full amount on Day 20; for 10% to pay late on Day 30; and for bad-debt losses to fall from 2% to 1% of gross sales. The firm’s operating cost ratio will remain unchanged at 75%, and its cost of carrying receivables will remain unchanged at 12%. To begin the analysis, describe the four variables that make up a firm’s credit policy and explain how each of them affects sales and collections.The president of a growing engineering firm wishes to give each of 20 employees a holiday bonus. How much needs to be deposited each monthfor a year at a 12% nominal rate, compounded monthly, so that each employee will receive a $2,500 bonus? a. $2,070 b. $3,840 c. $3,940 d. $4,170.A construction firm wishes to give each 80 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded monthly, so that each employee will receive a P5,000.00 bonus?
- company aaa wishes to give each 25 employees a christmas bonus how much is needed to invest monthly for a year at an 8% interest rate compounded quarterly so that each employee will receive a 1500 cash bonusThe manager has 5 employees whose combined salaries through the end of this year are $300,000. If he expects to give an average raise of 7% each year. If the interest rate is nine percent per year, calculate the present worth of the employees' salaries over the next five years.Engineering Economics An employee was promised by his boss that he will have a salary of P300,000 on his first month and will be increased by 31.6% on the succeeding months. What will be his total salary for one year if interest is 24% compounded annually.
- The average age of engineering students at graduation is a little over 23 years. This means that the working career of most engineers is almost exactly 500 months. How much would an engineer need to save each month to accrue $5 million by the end of her working career? Assume a 9% interest rate, compounded monthly.A young engineer’s starting salary is $75,000. The engineer expects annual raises of 2%. The engineer will deposit 15% of annual salary at the end of each year in an investment account that averages 6% interest. How much will the engineer have saved for retirement after 40 years?You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $66,000 per year for the next two years, or you can have $55,000 per year for the next two years, along with a $11,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. If the interest rate is 9 percent compounded monthly, what is the PV for both the options? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) PV Option 1 $______ Option 2 $_______
- You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $70,000 per year for the next two years, or you can have $59,000 per year for the next two years, along with a $15,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. If the interest rate is 10 percent compounded monthly, what is the PV for both the options? PV Option 1$ Option 2$By the end of this year, the total payroll expenditure of a small engineering consulting firm is $375,000. If a raise of 6% is given each year thereafter, calculate the future worth of the employees’ salaries over the next six years to follow. The interest rate is 10% compounded annually. The interest rate is 10% compounded annually.An employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the end of the eleventh year from now. Using an interest rate of 7% compounded annually, what is the value of these grant now? need answer in 20 mins sorry for rushing you guys :(
