You are comparing two annuities. annuity a pays $100 at the end of each month for 10 years. annuity b pays $100 at the beginning of each month for 10 years. the rate of return on both annuities is 8 percent. which one of the following statements is correct given this information
a) the future value of annuity a is greater than the future value of annuity b. b) annuity b will pay one more payment than annuity a will. c) annuity a has a higher future value but a lower present value than annuity b. d) annuity b has both a higher present value and a higher future value than annuity a. e) the present value of annuity a is equal to the present value of annuity b.

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?