Nerwin, inc. is a furniture manufacturing company with 50 employees. recently, after a long negotiation with the local labor union, the company decided to initiate a pension plan as a part of its compensation plan. the plan will start on january 1, 2014. each employee covered by the plan is entitled to a pension payment each year after retirement. on the basis of a discussion with the supervisor of the personnel department and an actuary from an insurance company, the controller develops the following information related to the pension plan. average length of time to retirement 10 years expected life duration after retirement 15 years total pension payment expected each year after retirement for all employees. payment made at the end of the year. amount includes all employees. $300,000 per year the interest rate to be used is 7%. required: calculate the present value of this deferred annuity (at january 1, 2014).

Match each feature with the savings account type

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

Suppose that a firm is considering moving from a batch process to an assembly-line process to better meet evolving market needs. what concerns might the following functions have about this proposed process change: marketing, finance, human resources, accounting, and information systems?