a purchaser of furniture on a time payment plan agrees to pay $200 at the end of each month for 24 months. later it is discovered that the same furniture could have been purchased for $3800 cash. what interest rate per month is the purchaser paying? what are the nominal and effective interest rates per year?

Answers

Answer 1

Purchase of furniture is a cash outflow from investing activity.

What is the entry of purchase of furniture?Upon furniture purchase, the value of an asset is increased and according to the Rules of Debit and Credit, an increase in an asset A/c is debited . Further, cash is reduced according to the Rules of Debit and Credit. So Cash A/c would be credited.The annual nominal interest rate is 9.31% when a $2000 furniture can be financed by paying $50 per month for 4 years for the loan.A loan's nominal interest rate is also known as the annual percentage rate. The term nominal describes the fact that the interest rate doesn't quite account for interest compounding over the course of the year.Purchases without full payment immediately are credit transactions. We record such transactions by debiting the asset account and crediting the liability account.

M= P*12*J/1-(1+12J)^-N

M is the monthly payment, P is the loan amount, J is the monthly interest and N the total number of payments.

$50=  $2000 *J*12 /1-(1+J*12)^-48

1-(1+J*12)^-48 =  $2000 *J*12 / $50

1-(1+J*12)^-48 / 12*J =  $2000 / $50

Solving for 12*J as we need to find annual rate

12*J = 9.31%

The annual nominal interest rate is 9.31% .

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Related Questions

What total amount of money would you have if you invested $5,000 at 2% interest for 3 years and the interest was calculated using the simple interest method? Use the simple interest example above as a guide to calculate simple interest, please show your work.

Answers

Answer:7,445.50

Explanation:

Answer:

simple Interest: $5,300.00

Annually Compounded Interest: 5,306.04

Explanation: Compound Interest means that you earn "interest on your interest", while Simple Interest means that you don't - your interest payments stay constant, at a fixed percentage of the original principal.

what are the sources of return on an investment? what are the differences among the expected return, the required return, and the realized return?

Answers

The money gained or lost on an investment over time is referred to as a return, often known as a financial return.

The nominal change in the dollar value of an investment over time can be used to express a return. Realized return is a return that was attained in the past, whereas expected return is a return that is predicted to occur in the future. Certain the asset's risk, a necessary return is the bare minimum projected return that an investor needs to invest in it over a given time frame. The anticipated profit or loss on an investment with known historical return rates is known as the expected return (RoR).

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If you have saved $4,000 in your savings account that earns 0.3% interest annually, what will most likely happen to the purchasing power of your savings over time?

Answers

If You have more money, but your purchasing power is lower. You will actually lose money if your savings don't increase at a rate that keeps up with inflation. Hence purchasing power will be $ 4012 .

What is Purchasing power ?

If inflation reduces your purchasing power every year when you are retired and living off of your savings, you won't be able to maintain the same level of life. This is particularly true in the United States, where medical costs frequently increase more quickly than other prices.

Long before retiring, inflation can be detrimental. Let's say you are diligently setting aside money for a specific purpose, like a home down payment or a college fund for your kids. While you're saving, your money's purchase power can decrease.

Given in que

Saving $ 4,000

interest = 0.3%

[tex]4000+0.3%= 4,012\\$ 4012\\[/tex]

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true or false? share capital is the amount of money a company pays to its shareholders in the form of dividends and increased share value.

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A company's share capital is the money it gets from selling common or preferred stock. With additional public offerings, a company's share capital or equity financing can fluctuate over time.

Depending on the context, the term "share capital" can mean slightly different things. The definition used by accountants applies to public company balance sheets and is much more narrow. It refers to the company's total revenue from share sales.

Share capital is what kind of capital is it?

Equity share capital and preference share capital are the two types of share capital. Equity share capital is obtained through investor funding, whereas preference share capital is obtained through preference share issuance.

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We can reduce the margin of error in an interval estimate of p by doing any of the following except: a. reducing the confidence coefficient. b. increasing the planning value p* to .5. c. increasing the level of significance. d. increasing the sample size.

Answers

Any of the following, with the exception of increasing the sample size, can reduce the margin of error in an interval estimate of p.

What three factors influence a confidence interval's margin of error?

The margin of error in a population mean confidence interval estimate is influenced by three factors: size of the sample, population variability, and confidence level.

What are two strategies that will diminish the room for give and take in a certainty stretch?

You can make more observations by using a larger sample size. As a result, a smaller interval will surround your sample statistic. You can get a more precise estimate of a population parameter by collecting more data.

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during the middle ages, what was a grant of land from a lord to a vassal called?

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Latin for "feudum," a fief was a key component of medieval contracts based on feudal law. It was a way for an overlord to give a vassal a type of property holding or other rights.

What was given to a lord's vassal?

According to the terms of the feudal agreement, the lord was required to give his vassal a fief, to provide for his protection, and to administer justice in his court. In exchange, the lord was entitled to certain "incomes" known as feudal occurrences, as well as the power to demand the services related to the fief (military, judicial, and administrative).

What is the name of a lord's land?

A lord of the manor's domain, also known as a demesne (/dmen, -min/ di-MAYN, -MEEN), consisted of all the land he retained and oversaw.

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a buyer makes an earnest money deposit of $1,500 on a $150,000 property and then withdraws her offer before the seller can accept it. the broker is responsible for disposing of the earnest money by:

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A client makes an earnest deposit of $1,500 on a $15,000 property, so she withdraws her provide before the vendor settles for it. The broker is chargeable for doing away with the earnest by returning it to the client.

An assignment of contract involves transferring a true estate contract from an inventive party (also called the $64000 estate distributer or assignor) to a brand new party (also called the assignee).

The assignment could be a legal term whereby a private, the “assignor,” transfers rights, property, or alternative edges to a different called the “assignee.” this idea is employed in each contract and property law. The term will see either the act of transfer or the rights/property/benefits being transferred.

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courts will consider course of performance in construing a contract only after considering which of the following? a. course of dealing b. express terms in the contract c. usage of trade d. confirmation between merchants

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Courts will consider course of performance in construing a contract only after considering course of dealing.

What is the difference between course of performance and Course of dealing?The term "course of dealing," as used in paragraph (b), is literally limited to a series of actions taken by the parties prior to the agreement. However, a "course of performance" is a series of actions taken after or in accordance with the agreement. The term "course of dealing" may be included in the agreement through express language or implied acknowledgement.In the event that such a construction is erroneous, the following rules apply: (1) express terms take precedence over course of performance, course of dealing, and usage of trade; (2) course of performance takes precedence over course of dealing and usage of trade; and (3) course of dealing takes precedence over usage of trade.

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has a dividend yield equal to 8 percent and is expected to grow at a 11 percent rate for the next seven years. what is abc's required return?

Answers

Answer: The needed rate of return on ABC's stock is 19.2%, and it trades at $41 per share. The dividend is anticipated to increase at a steady annual rate of 5.9%.

Explanation: How is a stock operated?

Stock is purchased by investors at a specific price based on the state of the market. Investors can sell a stock for a profit if the price increases. Investors may be selling at a loss if the price falls.

How do novices acquire shares?

Depositing funds into an online investment account, which can later be used to purchase shares of stock or stock mutual funds, is one of the greatest ways for novices to learn how to invest in stocks. with several brokers

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an intense struggle to gain market share is a distinguishing characteristic of what type of market?

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An intense struggle to gain market share is a distinguishing characteristic of oligopoly.

What is an oligopoly in a market?

In a market structure known as an oligopoly, a few major sellers or producers control the majority of the market or industry. In order to increase profits, which can result in corporate collusion, oligopolies frequently emerge. A small number of suppliers control oligopoly markets, which are dominated by them.

All nations and a wide range of industries contain them. Other oligopoly markets are significantly less competitive, though they may at first appear to be so in some cases. Raised entry barriers, price-setting power, non-price competition, firm interdependence, and product differentiation are all characteristics of oligopoly.

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A loan offered by a bank for college is known as

a PLUS loan
a private loan
a subsidized loan
an unsubsidized loan

Answers

Answer: B

Explanation: private student loans, which are provided by banks and other financial institutions, to help you pay for college.

why is it common for it departments to have closets that they do not share with other groups inside the same company

Answers

Having a separate storage space for these items can help to ensure that they are properly maintained and organized, and that they are only accessed by authorized personnel.

Why IT departments have separate storage space?It is common for IT departments to have their own designated storage spaces or closets because they often have a lot of equipment and supplies that need to be stored securely and organized in a way that is easily accessible to IT personnel. This can include items such as servers, routers, switches, cables, and other hardware as well as software licenses, documentation, and other materials.This can be especially important in larger organizations where there may be multiple IT teams working on different projects and using different equipment.Additionally, IT equipment can be sensitive and may require special handling and maintenance, so it may be more efficient for IT personnel to have their own dedicated space where they can manage and care for these items.

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what term refers to the degree to which power and decision-making authority are concentrated at higher levels of the organization rather than distributed

Answers

Centralization refers to the degree to which power and decision-making authority are concentrated at higher levels of the organization rather than distributed.

What do you mean by Centralization?

The process through which an organization's activities, particularly those involving planning, decision-making, and formulating strategy and policies, become concentrated within a specific geographic location group is known as centralization or centralization.The term "centralization" describes a situation in which the authority for making decisions is vested in a small group of individuals at the top of the organizational hierarchy. Top management makes decisions and relays them to lower level managers for implementation.

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peter and olga live near a lake with open fishing, and both have fishing boats there. they are the only two providers of fish to their local fish market. what is likely to happen if the local fish market maintains a nash equilibrium?

Answers

Peter and Olga will be motivated to fish as much as they can because there is a lake that is a common resource. As a result, fishing as much as possible is the most effective strategy for both.

This is problematic because the fishing stock will rapidly diminish and may eventually vanish. As a result, the supply of fish will decrease as a result of overfishing because private equilibrium fishing is much higher than socially optimal fishing.

How does the Nash equilibrium work?

In game theory, the decision-making theorem known as the Nash equilibrium states that a player can achieve the desired outcome by sticking to their initial strategy. When taking into account the choices made by other players, each player's strategy is optimal in the Nash equilibrium.

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it is erroneous to make direct comparisons between the calculated betas. because independent variables are often measured with different units. true false

Answers

The assigned statement is accurate based on the question. Independent variables are frequently measured in a variety of units.

What does the calculation mean?

When you define someone as determining, you are disapproving of their deliberate plan to just get what they desire often by injuring or harming others. Mental arithmetic is the practice of performing mathematical calculations in one's head without the aid of a computer or writing them down.

What are the various types of calculations?

Calculation Types

The process is straightforward: a single solvent or a combination of solutes is allowed to equilibrate to a specific relative humidity and temperature.Comprehensive: this is comparable to the "simple" case previous section, but the user has more facilities and options.

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when conducting market research, what type of data is used when existing data is unavailable or inadequate?

Answers

When conducting market research, primary data is used when existing data is unavailable or inadequate

What is primary data in marketing research?

The typical primary data that a marketer looks for is data that is tailored to their goals. Depending on how much and what kind of information the business is interested in, a primary data collection technique will be used. Surveys, focus groups, interviews, observational research, and field research make up the five main research methods.

Because primary data is specifically aimed at research objective, it can answer questions that secondary data may not be able to. Because it was compiled more recently, the material is more trustworthy and pertinent. Primary research is frequently used when people and organizations need to get feedback directly from target markets rather than relying on already available data.

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raymond co. has $3.9 million of debt, $2 million of preferred stock, and $1.2 million of common equity. what would be its weight on common equity?

Answers

The common equity weight is 0.20.

What does the term "equity" signify in business?

The amount of money that would be distributed to shareholders if the company liquidated its assets and paid off its liabilities is referred to as equity. Accounts receivable, currency, real land, and patents are examples of assets, whereas liabilities are any debts owed to other institutions or persons.

The weight on common equity is calculated as follows:

But first, we need to establish the overall firm's worth.

= Debt + Preferred stock + Common Equity  

= $3.9 million + $2 million + $1.2 million

= $6.02 million

The weight on common stock is now

Weight of common Equity = Common Equity ÷Total Shareholders Fund

= $1.2 million ÷ $6.02 million    

= 0.20

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True or false: Over 70% of business employees trust their senior management and believe that their company leaders act with honesty and integrity

Answers

Over 70% of business employees trust their senior management and believe that their company leaders act with honesty and integrity---False

What  are business leaders?

A business her leader is someone who motivates a group of people to achieve a common goal within an enterprise. This could be someone in a position of power, such as the vice president or CEO of a large company, or the editor-in-chief of a newspaper.

What do company executives do?

Leaders ensure that the company is aligned with its vision and mission and that employees emulate the company's values. They do this by leading by example. Managers must have strategic, decision-making, and interpersonal skills.

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Of the following year spans, which had the greatest decrease in voter turnout rates?
A. 1824 and 1828
B. 1860 and 1864
C. 1992 and 1996
D. 1916 and 1920

Answers

Option D is correct. 1916 and 1920  had the greatest decrease in voter turnout rates.

Which of the following organizations has the best charge of voter turnout?

Voter turnout additionally extended as age, educational attainment and income increased. Voter turnout used to be very best amongst those a while 65 to 74 at 76.0%, whilst the share used to be lowest amongst these a while 18 to 24 at 51.4%.

A form of government in which sure humans are chosen to talk for the people. pursuit of political aims. Which group has a mainly low voter turnout? racial and ethnic minorities and the poor.

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in order to avoid illegal discrimination charges in relation to selection strategies, managers must prove that the job requirements they outline are:

Answers

Managers must demonstrate that the conditions they list for open positions are connected to those positions in order to avoid accusations of illegal discrimination with respect to selection procedures.

What is discrimination?

Discrimination is the practice of treating someone unfairly based on the groups, classes, or other categories to which they nominally or tacitly belong. A person could be treated unfairly because of their race, gender, age, religion, sexual orientation, or any other attribute. Discrimination is especially recognized when individuals or groups are unfairly treated worse than others due to their actual or perceived membership in specific groups or social categories. It involves keeping members of one group from taking advantage of opportunities or receiving benefits that belong to another group.

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lighting co. is planning to fund a project by issuing 15-year zero coupon bonds with a face value of $1,000. assuming semiannual compounding of interest, what will be the price of these bonds if the appropriate discount rate is 10 percent?

Answers

$1001.161 will be the price of these bonds if the appropriate discount rate is 10 percent.

What does the term interest mean?

The costs associated with borrowing cash and paying somebody to lend you money are referred to as interest. Interest is frequently calculated as such a monthly percentage of the amount borrowed. The interest on the loan is represented by such a percentage.

Briefing:

Discount rate (r) = 10%

Semi-annual compounding

Face value = $1000

Period (t) = 15 years

Price of zero-coupon bond (P) :

Face value / ( 1 + r)^t

r = 10%, compounded semianually

r = (10 / 100) = 0.1 / 2 = 0.05

Period (t) = 15 * 2 = 30

P = 1000 / (1 + 0.05)^30

P = 1000 / 1.005^30

P = 1000 / 1.1614

P = 1001.1614

P = $1001.161 ( 3 decimal places)

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You are putting together your first post-graduation budget. Your take-home pay will be $2,500 per month. You estimate your monthly costs to be rent of $900, car related expenses to be $550, entertainment of $200, food expense of $250, cable bill of $75, mobile phone of $100, student loan payment of $400 and other expense of $150. How would you describe your budget after analyzing all of your income and expenses?
A. You have a surplus of $125.
B. You have a deficit of $125.
C. You have a deficit of $2,625.
D. You have a surplus of $2,500.

Answers

The correct answer is A. You have a surplus of $125.

What is income?

Income is the money which is earned by individuals or companies through wages, salaries, investments, and other sources. It is the total of all the money earned over a given period of time and is often used to measure an individual or company's financial success. Income is important to individuals and businesses as it is used to pay for living expenses, taxes, and other financial obligations. Income also serves as a measure of economic growth, as it is a key indicator of consumer spending and investment.

This is because the total of your income ($2,500) is greater than the total of your expenses ($2,375). The difference between them is $125 which is your surplus.

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which of the following are correct statements about the internal rate of return (irr)? (check all that apply.) multiple select question. irr uses accrual income as the measurement basis. irr uses the time value of money. the higher the irr, the better. irr is expressed in dollars.

Answers

The best answer is to have a larger IRR since it represents the time worth of money.

What is the statistical rate?

Last but not least, a rate is an more broad measurement that involves dividing two values, neither of which must be the same units of measurement. It is capable of being equal to any integer, including a negative one. It can be stated as either a figure or a percentage, much like proportions.

What's the rate response?

A standard for measuring a call center's success is the answer rate. In a business setting, it is defined as ratio of inquiries answered to calls received.

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The complete question is-

Which of the following are correct statements about the internal rate of return? (Check all that apply.)

Multiple select questions.

(A) The higher the IRR, the better.

(B) IRR reflects the time value of money.

(C) IRR uses accrual income as the measurement basis.

(D) If a project has a positive NPV, then the IRR is less than the hurdle rate.

(E) IRR is expressed in dollars.

the manufacturer of kingston freestanding greenhouses gives $100 as an incentive to a reseller's salespeople for each greenhouse they sell. this special incentive is known as

Answers

Kingston freestanding greenhouses' manufacturer rewards a reseller's salespeople with $100 for each greenhouse they sell. A spiff is the name given to this unique reward.

Explain about the  manufacturer?

A manufacturer is a person or business that turns raw materials into finished products using a variety of tools, machinery, and procedures, and then sells those products to consumers, wholesalers, distributors, retailers, or other manufacturers who can use them to make more complicated products.

Producing new things out of parts or raw materials is known as manufacturing. A manufacturer is any business that turns raw materials into finished goods. They promote these goods both to consumers and to other manufacturers who want to create more complex goods, including wholesalers, distributors, retailers, and merchants.

He works for a company that manufactures vehicle parts. to produce items in huge quantities, typically in a factory using machinery. Designing and producing items in compliance with any applicable product legislation's primary health, safety, or other objectives.

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what caused the growth of regulatory agencies around the transition from the nineteenth to the twentieth century?

Answers

Due to the excesses of the millionaires of the Gilded Age, many Americans demanded that the government control business and industry. As a result, a number of independent regulatory commissions emerged around the start of the 20th century.

When were regulatory agencies created?

The Department of the Interior was founded in 1849, the Department of Justice followed in 1870, and the Post Office Department was established in 1872 as a result of the country's growth and the increase of governmental responsibilities.

In response to complaints of the misuse of authority under the spoils system from the public, agencies started to create official operational standards and publish norms. For instance, the Patent Office started publishing its customs judgements in 1869 after the Treasury Department did so in 1868.

Independent regulatory commissions were first established between 1865 and 1900. These organizations were established by Congress to set prices and regulate industrial competition. The Interstate Commerce Commission was the first of these "economic regulatory authorities."

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According to dave ramsey, what percentage of your annual salary should you try to cover with this insurance?.

Answers

Dave advises coverage of 60-70% of your monthly salary, the longest elimination period your budget and emergency fund can support, and a 5-year benefit duration.

What is budget means?

A budget is a spending plan that accounts for both income and expenses. In other words, it's an estimate of how much money you'll make and spend over a set length of time, such as a month or a year. (Alternatively, a family budget is one that accounts for all of your household's incoming and outgoing money.) Examples include, among others, the sales budget made to forecast the company's sales and the production budget prepared to forecast the company's output.

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write a 2 sentences conflict that you have with others and how it was solve

Answers

A conflict is a situation where there is a disagreement over one or more issues involving two or more people. In school, while were playing football, there was a conflict about whether or not a particular tackle was fair or not. The referee helped to resolve this.

What are the benefits of resolving Conflict?

Note that some of the advantages of settling disagreements or conflicts include:

Relationship Development: Personal and professional relationships can often suffer from unresolved conflicts.Achievement of Objectives: Ongoing conflict situations, particularly in commercial partnerships, can make it difficult to complete goals.Increasing CommitmentCreating New Insight.

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Mrs. Jansen is the sole shareholder of mimeo corporation. She also owns the office building that serves as corporate headquarters. Last year, mimeo paid $200,000 annual rent to mrs. Jansen for use of the building. Mimeo's marginal tax rate was 21% and mrs. Jansen's marginal tax rate on ordinary income was 37%. The revenue agent who audited mimeo's return concluded that the fair rental value of the office building was $150,000. Compute the net impact of this audit conclusion on mimeo's income tax liability

Answers

The net impact of the given audit conclusion on mimeo's income tax liability is $10,500 increase.

What does tax liability mean?

The amount owed to the Internal Revenue Service (IRS) at the end of each tax year is referred to as "tax liability." A person, business, or other entity's tax liability is the total amount of taxes that they owe to the government.

Tax liabilities include things like income taxes, sales taxes, and capital gains taxes. Federal, state, and local governments are just a few of the taxing entities that impose taxes. What you owe in taxes to the IRS or your state government is known as your tax liability. Depending on your income and filing status, you may have to pay income taxes.

Given:

Taxable income increases by $50,000,

increasing tax liability is

= ($50,000 × 21%) = $10,500

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What term is used to describe the business model where service providers to make computing resources and infrastructure management available to customers as needed and then charges them for its specific usage rather than a flat rate?.

Answers

Answer: Utility computing

Explanation: Utility computing- is defined as a service provisioning model that offers computing resources to clients as and when they require them on an on-demand basis. The charges are exactly as per the consumption of the services provided, rather than a fixed charge or a flat rate.

positions such as justice of the peace and county tax assessor are important to a functioning democracy. true or false?

Answers

It is a true statement that some positions such as justice of the peace and county tax assessor are important to a functioning democracy.

What is the tax assessor's function?

An assessor, also known as a tax assessor, is am elected representative tasked with figuring out the value of each taxable property in a county, municipality, or township in the United States.

Why is tax collection necessary for governments?

Generally, tax revenue are essential for governments to function. Real estate, personal property, and income are assessed for taxes by the federal, state, and local governments.

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