Kolby corp. Is comparing two different capital structures. Plan i would result in 3,500 shares of stock and $37,440 in debt. Plan ii would result in 2,800 shares of stock and $66,560 in debt. The interest rate on the debt is 10 percent. Assume that ebit will be $14,800. An all-equity plan would result in 4,400 shares of stock outstanding.


a. Ignore taxes, compare both of these plans to an all-equity plan assuming that ebit will be $14,800. The all-equity plan would result in 4,400 shares of stock outstanding. Which of the three plans has the highest eps? the lowest?

b. In part (a) what are the break-even levels of ebit for each plan as compared to that for an all-equity plan? is one higher than the other? why?

c. Ignoring taxes, when will eps be identical for plans i and ii?

d. Repeat parts (a), (b), and (c) assuming that the corporate tax rate is 21 percent. Are the break-even levels of ebit different from before? why or why not?


show all the steps and don't round off calculations

The statement given "Peer-to-peer support and teamworking are important for enhancing the learning experience" is true because they both are important for enhancing the learning experience.

Peer-to-peer support is vital in the following ways:

It encourages students to participate in classroom and extracurricular activities because they feel supported and encouraged.

It assists students in identifying with their peers and feeling a sense of belonging.

It can help students manage stress and anxiety, which can lead to better academic performance.

Teamwork is vital in the following ways:

Collaboration is a key part of teamwork. When students collaborate on a project or an assignment, they learn from one another, improve their skills, and build their confidence.

Teamwork promotes leadership skills, as team members may have to take on different roles in order to achieve their goals.

Teamwork teaches time management and organization skills because the group must work together to achieve its objectives.

"

Complete question

Peer-to-peer support and teamworking are important for enhancing the learning experience.

True

False

"

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It is accurate to say that the human body cannot synthesise the majority of vitamins.

Vitamins are organic substances that must be received from diet, either because an organism lacks the enzymes required for their synthesis or because it cannot make enough of them on its own [1].

Only bacteria, which are found in the colon in humans, can synthesise vitamin B12, also known as cobalamin, which the body cannot absorb. Therefore, cobalamin must be absorbed by the food, and only food derived from animals provides adequate levels.

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The truck should be recorded on the balance sheet at a cost of $63,400 prior to recording depreciation expense.

To calculate the cost of the truck to be recorded on the balance sheet prior to recording depreciation expense, we need to add up all the costs associated with the purchase of the truck.

The cost of the truck will include the negotiated price with the dealer, plus any additional costs directly related to acquiring and preparing the truck for its intended use. In this case, those costs are the sales tax, shipping and preparation costs, and insurance for the first year of operation.

Therefore, the cost of the truck to be recorded on the balance sheet prior to recording depreciation expense is:

$49,000 (negotiated price) + $3,800 (sales tax) + $4,800 (shipping and preparation costs) + $5,800 (insurance for the first year of operation) = $63,400.

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Where p is the price per unit in dollars and q is the number of units demanded , The value of dq/dp=[tex]-(6p/(1000 - 6p^2)^{0.5} )[/tex]

The demand equation with respect to p, where p and q are function,

[tex]6p^2 + q^2 = 1000[/tex]

Deriving wrt p,

[tex]12p + 2q dq/dp = 0\\Solving for dq/dp-\\dq/dp = -(6p/q)[/tex]

value of q,

[tex]q^2 = 1000 - 6p^2\\q = (1000 - 6p^2)^0.5[/tex]

substituting the values in dq/dp

[tex]dq/dp = -(6p/(1000 - 6p^2)^{0.5} )[/tex]

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Cost-related advantages of single factory option: With a single factory option, the company can achieve economies of scale which means that the cost of production will decrease as the company will be producing a larger number of units.

This will help in reducing the per-unit cost of production. This will help the company to achieve cost leadership which is a competitive advantage. A single factory will require less investment as compared to multiple factories which will help the company to save money. Employee-related advantages of single factory option:The company will require fewer employees to work in a single factory as compared to multiple factories which will help the company to save money on employee salaries and benefits.

With a single factory option, the company can provide more specialized training to its employees which will help in improving the efficiency and productivity of employees.

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The closest answer choice for ROI is 29.4%. The correct answer is c.

To calculate the return on investment (ROI), we need to divide the net income by the total investment, and then multiply by 100 to express it as a percentage.

First, we need to calculate the net income. Net sales minus cost of goods sold equals gross profit. Gross profit minus operating expenses equals net income.

Net sales - Cost of goods sold = Gross profit

$280,611 - $110,900 = $169,711

Gross profit - Operating expenses = Net income

$169,711 - $45,315 = $124,396

Now, we need to calculate the total investment. The total investment includes the owner's equity and any other investments made in the business.

Total investment = Owner's equity + Additional investments

$423,600 + Additional investments = Total investment

Unfortunately, we do not have information on any additional investments, so we cannot calculate the exact ROI. However, we can calculate the minimum ROI based on the given information.

Minimum ROI = Net income / Owner's equity

$124,396 / $423,600 = 0.2937

Multiplying by 100 to express as a percentage gives us:

Minimum ROI = 29.4%

Therefore, the closest answer choice is (c) 29.4%. However, it should be noted that this is the minimum ROI, and the actual ROI may be higher if there are additional investments made in the business.

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The best strategy when shopping for life insurance is to: c. figure out how much you need, then compare shops using the web and other resources.

When shopping for life insurance, it is important to first determine how much coverage you need. This can be based on factors such as your income, financial responsibilities, and any dependents you have.

Once you have an idea of the coverage you need, use the internet and other resources to compare different life insurance providers and their policies. This will allow you to find the most suitable coverage at the best price for your specific needs.

While it is true that agents have expertise in the field, relying solely on their recommendations may not always result in the most suitable policy for your situation. Similarly, while buying coverage through your employer might be convenient, it may not provide the best coverage or pricing options.

Finally, waiting until you are older to purchase a policy can actually result in higher premiums, as life insurance rates tend to increase with age.

By taking the time to research and compare different options, you can ensure that you are making an informed decision when purchasing life insurance, ultimately selecting the policy that best fits your needs and financial situation.

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a. To compute the activity variance, we need to calculate the flexible budget for the actual sales volume and then compare it with the actual revenues.

Flexible budget for total sales = (0.3 x 210,000 x $12) + (0.7 x 210,000 x $9) = $2,142,000

Activity variance = Actual revenues - Flexible budget

                 = $2,055,000 - $2,142,000

                 = U$87,000 (Unfavorable)

The activity variance of $87,000 is unfavorable because the actual revenues were less than the flexible budget for the actual sales volume.

b. Mix variance = (Actual mix - Budgeted mix) x Budgeted profit per case

Actual mix = (60,000 / 210,000) = 0.2857

Budgeted mix = 0.3

Budgeted profit per case = Branded sales price - Branded variable cost

                               = $12 - $5

                               = $7

Mix variance = (0.2857 - 0.3) x $7

                  = U$1,050 (Unfavorable)

The mix variance of $1,050 is unfavorable because the actual mix had a higher proportion of Generic than Branded, which has a lower profit per case compared to Branded.

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One step Tammy can take to maintain her anonymity when shopping traditionally is to pay with cash instead of using a credit or debit card.

By using cash, she won't leave any digital footprints, making it harder for businesses to track her shopping habits. Additionally, she can avoid signing up for loyalty programs or giving out personal information that can be used to identify her.

If she wants to make an online purchase, she can use a virtual private network (VPN) to hide her IP address and prevent her online activity from being traced back to her.

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Answer:

Both 401(k) accounts and IRAs are retirement savings accounts that allow individuals to save for retirement on a tax-advantaged basis. Contributions to these accounts are tax-deductible, and the earnings on the investments grow tax-free until they are withdrawn during retirement.

There are some benefits to having a 401(k) account or an IRA. They allow individuals to save for retirement in a tax-efficient way, and can provide a significant source of income during retirement. In addition, many employers offer matching contributions to 401(k) accounts, which can be a valuable incentive to participate.

However, there are also some drawbacks to these types of accounts. For example, they are subject to market fluctuations and the investment risk is borne by the individual. In addition, there are limits on how much can be contributed each year, which may not be enough to provide for a comfortable retirement.

Whether or not every working American needs a 401(k) account or an IRA depends on individual circumstances. For some people, these accounts may be a valuable tool for saving for retirement. For others, different types of retirement savings accounts or strategies may be more appropriate. Ultimately, it is up to each individual to determine the best approach for their own retirement planning.

The labor force participation rate is 80%. This means that 80% of the working-age population is currently either employed or actively seeking employment.

To calculate the labor force participation rate, you'll need to use the following terms: number employed, number unemployed, and working-age population.
Step 1: First, find the total labor force by adding the number employed and the number unemployed. In this case, the total labor force is 190 million (employed) + 10 million (unemployed) = 200 million.
Step 2: Next, divide the total labor force by the working-age population. In this case, divide 200 million (labor force) by 250 million (working-age population).

Step 3: Multiply the result from Step 2 by 100 to convert it into a percentage.
Here's the calculation:
(200 million / 250 million) x 100
The labor force participation rate is 80%.

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1- The weighted average cost of capital is 9.08%, 2- the net present value of the project is -$10.10 million, and 3-NEC should not accept the project since the NPV is negative.

1. Calculation of the weighted average cost of capital (WACC):

WACC = (E/V) * Re + (D/V) * Rd * (1 - Tc)

Where:

E = market value of equity

V = market value of equity + market value of debt

Re = cost of equity

D = market value of debt

Rd = cost of debt

Tc = tax rate

Market value of equity = Number of shares * price per share = $0 (Since the problem doesn't provide this information)

Market value of debt = Total project cost = $45.08 million

D/V = 80% (Given)

E/V = 1 - D/V = 20%

Re = 11.6% (Given)

Rd = 7.7% (Given)

Tc = 34% (Given)

Therefore, the WACC = (0.20 * 0.116) + (0.80 * 0.077 * (1 - 0.34)) = 0.0908 or 9.08%

2. Calculation of the net present value (NPV) of the project:

NPV = Present value of cash inflows - Initial investment

Initial investment = Total project cost = $45.08 million

Unlevered cash flows = $3.18 million

PVIFA (Perpetuity, 9.08%, 1) = 1 / 0.0908 = 11.00

Present value of cash inflows = Unlevered cash flows * PVIFA = $3.18 million * 11.00 = $34.98 million

Therefore, the NPV = $34.98 million - $45.08 million = -$10.10 million

So, the net present value (NPV) of the project is -$10.10 million.

3. Since the net present value (NPV) of the project is negative, NEC should not accept the project. Therefore, the answer is (a) No.

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When a law-making body passes a law that restricts commercial speech, the court will consider the following elements in determining if this restriction is permissible:

Whether the government's interest in regulating the speech is strong enough to outweigh the impact on the speaker's rights; Whether the government's interest is unrelated to the suppression of free speech;Whether the government's interest could be achieved through other means that would have a lesser impact on the speaker's rights. The court will also consider the content of the speech, the location of the speech, and the audience being addressed when determining whether the restriction on commercial speech is permissible. Whether the commercial speech concerns a lawful activity and is not misleading.

Whether the government has a substantial interest in regulating the speech. Whether the restriction directly advances the government's interest. Whether the restriction is not more extensive than necessary to achieve the government's interest.

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Employees are more likely to be motivated when they are included and satisfied in all or most of these areas.

Inspiration factors remembered for Hertz berg's hypothesis incorporate the actual work, development, acknowledgment, progression, accomplishment and obligation.

Motivation in the workplace rises when goals are set and met, expectations are clear, feedback is given, and management is encouraged. It thrives in a positive workplace, which is the reason such countless pioneers need to learn better approaches to spur their labor force.

Inspirations like advancements make a drive for representatives to work to the best of their capacities. In that capacity, inspiration in an association will prompt an expansion in the efficiency of a worker, who will offer more contrasted with a demoralized representative

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Inventory makes up almost a quarter of Blossom Company's total assets, with a 23.7% share.

Vertical analysis is a method of analyzing financial statements in which each item on a financial statement is expressed as a percentage of a base amount. In this case, the base amount is the total assets of Blossom Company.

The percentage of accounts receivable on December 31, 2020, is calculated as:

[tex]$$\text{Accounts Receivable Percentage} =[/tex][tex]\frac{\text{Accounts Receivable}}{\text{Total Assets}} \times 100\%$$[/tex]

Substituting the values, we get:

[tex]$$\text{Accounts Receivable Percentage} =[/tex][tex]\frac{\$497,000}{\$3,101,000} \times 100\% \approx 16.0\%$$[/tex]

This indicates that accounts receivable represents 16.0% of the total assets of Blossom Company.

Similarly, the percentage of inventory on December 31, 2020, is calculated as:

[tex]$$\text{Inventory Percentage} =[/tex][tex]\frac{\text{Inventory}}{\text{Total Assets}} \times 100\%$$[/tex]

Substituting the values, we get:

[tex]$$\text{Inventory Percentage} =[/tex][tex]\frac{\$735,000}{\$3,101,000} \times 100\% \approx 23.7\%$$[/tex]

This indicates that inventory represents 23.7% of the total assets of Blossom Company.

By analyzing the percentages of accounts receivable and inventory, we can see that they have increased as a percentage of total assets from 2019 to 2020, indicating that they have become relatively more significant to the company's overall financial position. Vertical analysis is a useful tool to identify trends and changes in a company's financial position over time.

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Variety and volume are important parameters when it comes to process design. The type of process for variety of different volumes will be as follows:

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Olivia's field of accounting is called managerial accounting.

Managerial accounting is the process of providing financial and non-financial information to management to help them make informed decisions that will improve the organization's efficiency and effectiveness. It involves analyzing data, identifying trends, and providing recommendations to help management make strategic decisions that align with the organization's goals and objectives. Managerial accountants use various tools and techniques, such as cost accounting, budgeting, and performance analysis, to provide information that supports management decision-making.

In Olivia's case, her father is excited that she specialized in this area because it is crucial for the success of any business, and having a skilled and knowledgeable managerial accountant like Olivia can greatly benefit the accounting firm.

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Ben, as a mentor, provided Martha with career development function.

Career development function refers to the process of guiding and supporting an individual's professional growth and advancement within an organization.

It involves identifying the individual's potential, strengths, weaknesses, and career goals, and then providing guidance and resources to help them develop the necessary skills and knowledge to achieve those goals.

In this scenario, Ben recognized Martha's potential and took a keen interest in mentoring her. He provided her with guidance and feedback on her ideas, which helped her to develop them further.

Ben also scheduled a meeting for Martha to meet with the company's top-level managers, which helped her gain visibility within the organization.

By providing Martha with career development function, Ben helped her to grow and advance in her career. He enabled her to recognize her strengths and weaknesses, and he provided her with the necessary resources to develop the skills and knowledge she needed to advance in her career.

Ben's mentoring and support also helped Martha to build her confidence and credibility within the organization.

Overall, Ben's mentorship provided Martha with an opportunity to learn from a more experienced colleague, gain visibility, and develop her skills and knowledge, which are essential for career development.

Ben's actions demonstrate the importance of mentoring in career development and how it can help individuals to achieve their career goals.

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The marketing research industry is composed of different groups, including clients, researchers, respondents, and vendors, each with its own role and relationship to the others. Clients are the individuals or organizations that request marketing research projects, and they work closely with researchers to design the study and interpret the results.

Researchers are responsible for conducting the study, collecting and analyzing data, and delivering insights to clients. Respondents are the individuals or groups who participate in the research, providing information and opinions that inform the study's findings. Vendors are companies that provide tools and resources to support the research process, such as software, sample panels, or data visualization tools.

The relationship between these groups is interdependent, with each group relying on the others to complete a successful research project. Clients must work closely with researchers to ensure the study design meets their needs and objectives, while researchers rely on respondents to provide accurate and honest information. Vendors may work with both clients and researchers to provide necessary tools or services, while researchers may work with vendors to ensure data collection and analysis is accurate and efficient.

Overall, the success of a marketing research project depends on the strong relationships and collaboration between each group within the industry. Effective communication, collaboration, and mutual understanding are critical to ensuring a successful project that meets the needs and objectives of all parties involved.

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The price of coffee and the amount required are inversely related according to this demand curve.

The quantity of an item or service that consumers are willing to purchase at various prices is represented graphically by a demand curve. When all other variables are held constant, it displays the quantity of the commodity that is wanted at each price point. The amount of coffee demanded declines as the price rises. Customers will, therefore, purchase more coffee at a cheaper price and less coffee at a higher price. The link between price and quantity is also demonstrated by the demand curve, with each price matching to a certain amount sought.

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If a loan has a prepayment penalty, there will be an additional cost to repay the loan early, specifically if the borrower wants to repay the loan before the loan maturity date. So, correct option is D.

A prepayment penalty is a fee charged by the lender if the borrower repays the loan before the agreed-upon term. The prepayment penalty is a way for the lender to recover some of the interest that would have been earned if the loan had been held to maturity.

This fee is typically a percentage of the outstanding loan balance and can be a significant cost for borrowers who wish to repay the loan early.

Option A is incorrect because there would not be any payment due before the first payment is due. Option B is partly correct, but it is not limited to the full interest that would have been earned. Option C is also incorrect because a prepayment penalty is different from a penalty for defaulting on a monthly payment.

Option E is also incorrect because the timing of the prepayment penalty varies depending on the terms of the loan agreement.

So, correct option is D.

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The process by which mentors help new employees with their jobs and enable them to perform better is an example of employee onboarding and training. With the implementation of a flat organizational structure, Aspen Integrated Marketing has recognized the importance of sharing knowledge and fostering collaboration throughout the organization.

By assigning mentors to new employees, they are providing a structured and supportive approach to learning and development. This helps to ensure that new employees have the necessary knowledge and skills to succeed in their roles and contribute to the overall success of the organization.

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Bob can be described as an entrepreneur.

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The term that best fits this question is "securities."

Fraud is a serious criminal offense that involves deception, dishonesty, or misrepresentation of information to gain a financial advantage. Fraud involves lying about stock values to get consumers to open an investment account. Securities fraud can lead to significant financial losses for the victims and legal consequences for the perpetrators.

In this case, the fraudster could provide false information about the value of a particular stock or investment opportunity, making it seem more attractive than it is, to convince unsuspecting consumers to invest their money. Once the investors have invested their money, the fraudster can manipulate the stock's value or disappear with the investors' money, resulting in significant financial losses for the investors.

To protect yourself from securities fraud, it is crucial to research the investment opportunity before investing any money. Investors should investigate the company or individual offering the investment, read the prospectus carefully, and consider seeking advice from a licensed financial professional. It is also essential to report any suspicious activity or potential fraud to the relevant authorities immediately.

Therefore, lying about stock values to encourage consumers to open an investment account is an example of securities fraud.

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The transaction that would be a) classified as an investing activity on the statement of cash flows is sale of equipment at book value.

When equipment is sold at book value, it means that the proceeds from the sale are equal to the carrying amount of the asset on the company's books. This transaction is considered an investing activity because it involves the sale of a long-term asset, which is a component of the company's investing activities.

b) The transaction classified as a financing activity on the statement of cash flows is the issuance of bonds payable at a discount.

Issuance of bonds payable at a discount is a financing activity because it involves the borrowing of funds from external sources. The discount represents the difference between the face value of the bonds and the amount received from the issuance.

c) The transaction classified as a financing activity on the statement of cash flows is the declaration of a cash dividend.

A cash dividend is a distribution of earnings to shareholders, which represents a financing activity because it involves the payment of funds to external parties.

d) The transaction classified as an operating activity on the statement of cash flows is the sale of merchandise on credit.

The sale of merchandise on credit represents revenue earned by the company, which is an operating activity. It does not involve the sale of a long-term asset or borrowing or repayment of funds. However, the collection of the accounts receivable generated from this transaction would be classified as an operating activity.

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The BMW Group is a German multinational company that produces luxury vehicles and motorcycles.The company produces cars under the BMW, Mini, and Rolls-Royce brands, and motorcycles under the BMW Motorrad brand.

The following are the three ethical models that can be discussed:

1. The Virtue Ethics Model: Virtue ethics emphasizes the development of moral character traits, such as honesty and integrity, as well as the cultivation of virtues such as courage and generosity. Virtue ethicists believe that if a person acts according to a set of ethical principles, he or she will automatically do the right thing.

The BMW Group can employ virtue ethics by developing a culture of accountability, honesty, and fairness, emphasizing the importance of ethical conduct and being a socially responsible organization.

2. The Utilitarian Model: Utilitarianism is a philosophical approach that suggests that the best course of action is the one that maximizes overall happiness and minimizes overall suffering.

3. The Deontological Model: Deontological ethics emphasizes the importance of following ethical rules and principles, regardless of the consequences. This approach is based on the belief that certain moral principles are absolute and should never be violated.

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The statement "The attempt to interfere with a person’s autonomy by preventing one from making a rational, fully informed, and voluntary choice and acting instead on misleading information or emotional appeals" is the definition of:

b. deceptive advertising.

Deceptive advertising is a practice in which advertisers mislead consumers by making false or exaggerated claims about a product or service. It interferes with a person's autonomy by preventing them from making a rational, fully informed, and voluntary choice.

Business ethics play a crucial role in preventing deceptive advertising. Ethical businesses ensure that they do not engage in any deceptive advertising practices, as it violates the trust of consumers. Such practices can lead to legal consequences, damage to the brand's reputation, and the loss of customers.

Therefore, it is important for businesses to adhere to ethical standards while promoting their products or services. Advertisements should be honest, transparent, and not mislead the customers. They should provide accurate information about the product's features, benefits, and limitations. Businesses should prioritize building a long-term relationship with their customers by gaining their trust and loyalty.

In conclusion, deceptive advertising is a violation of business ethics and can have severe consequences for businesses. It is important for businesses to promote their products or services ethically and not resort to misleading practices that harm the interests of consumers.

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A manager in the Australian mining case study can use intuitive decision-making to identify appropriate locations to mine by observing and gathering data, analyzing the data, relying on their experience, using mental shortcuts, evaluating potential risks, and ultimately making a decision based on all of these factors.

1. Observe and gather data: The manager should first collect information on potential mining locations. This may include geological surveys, mineral concentrations, accessibility, and any environmental or legal restrictions.

2. Analyze the data: Next, the manager should analyze the gathered data to identify trends and patterns. This may involve comparing mineral concentrations in different areas or considering the cost and logistics of mining in various locations.

3. Rely on experience: Intuitive decision-making involves relying on one's past experiences and knowledge in a specific domain. The manager should draw on their experience in the mining industry to make educated guesses about potential mining sites.

4. Use mental shortcuts: Intuitive decision-making often involves using mental shortcuts or heuristics to quickly arrive at a conclusion. The manager might use a rule of thumb, such as choosing locations with the highest mineral concentrations or the lowest environmental impact.

5. Evaluate potential risks: The manager should consider potential risks associated with each mining location, such as environmental damage, legal issues, or community backlash. Intuition can play a role in evaluating these risks based on past experiences and knowledge.

6. Make a decision: Based on the analysis, experience, and evaluation of risks, the manager should make a decision on the most appropriate locations to mine. Intuitive decision-making helps the manager make a quicker decision with the available information.

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The equivalent annual worth of the project is positive, the project is economically attractive using the annual-worth measure of merit. This means that the project's net present value is positive, and the investment is expected to generate a return higher than the MARR of 9% per year.

The annual-worth measure of merit is a method used to evaluate the profitability of a project by converting all the cash flows of the project into an equivalent annual worth. This method considers the time value of money by discounting all cash flows to the present value using the minimum attractive rate of return (MARR).

To apply this method to the scenario given, we first need to calculate the cash flows of the project. The cash inflows are the revenue generated by renting the motel rooms, while the cash outflows are the initial cost of building the motel, the cost of replacing furnishings every four years, annual operating and maintenance expenses, and the market value of the motel after 12 years.

The revenue generated by renting the motel rooms can be calculated by multiplying the average rate of room rent ($45) by the number of rooms (130) and the occupancy rate (60%). Thus, the annual revenue is:

Annual revenue = ($45 x 130 x 60% x 365) = $1,096,500

The initial cost of building the motel is $5.2 million, and the cost of replacing furnishings every four years is $1,875,000. Thus, the cash outflows for the project can be calculated as follows:

Cash outflow = Initial cost of building the motel + Cost of replacing furnishings every four years + Annual operating and maintenance expenses

= $5,200,000 + ($1,875,000 / ((1+9%)^4 + (1+9%)^8)) + $130,000

= $5,200,000 + $1,131,232 + $130,000

= $6,461,232

Finally, the market value of the motel after 12 years is estimated to be 20% of the original building cost, which is:

Market value of motel = 20% x $5,200,000 = $1,040,000

Now, we can calculate the equivalent annual worth of the project by discounting all cash flows to the present value using the MARR. The formula for calculating the equivalent annual worth is:

Equivalent annual worth = (PW of cash inflows) - (AW of cash outflows)

Where PW is the present worth and AW is the annual worth. Using the formula, the equivalent annual worth of the project can be calculated as follows:

Equivalent annual worth = ($1,096,500 / (1+9%)^0) - ($6,461,232 / (1 - (1+9%)^-12))

= $49,657.97

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