BUSINESS COLLEGE

Marcos receives an annuity payment of $2,500, payable every two years, for the next ten years. The next payment is due two years from today. What is the present value of this annuity at a discount rate of 5 percent?

Answers

Answer 1
Answer:

Answer:

$9,416.75

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow in year 1 = 0

Cash flow in year 2 = $2500

Cash flow in year 3 = 0

Cash flow in year 4 = $2500

Cash flow in year 5 = 0

Cash flow in year 6 = $2500

Cash flow in year 7 = 0

Cash flow in year 8 = $2500

Cash flow in year 9 = 0

Cash flow in year 10 = $2500

Present value = $9416.75

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

Answer 2
Answer:

Final answer:

The present value of the annuity payments that Marcos receives is approximately $11,614.58, using the given 5% discount rate and considering the biennial payment structure.

Explanation:

To calculate the present value of an annuity where payments are made every two years, we can use the present value of an ordinary annuity formula. Since payments are made every two years, we adjust our calculations to reflect this. Given the discount rate of 5% and the next payment due to be in two years, we will use this rate for our calculations.

Here's how to find the present value of the annuity that Marcos receives. We would use the following formula for the present value (PV) of an ordinary annuity:

PV = Pmt * [(1 - (1 + r)^-n) / r]

Where Pmt is the annuity payment, r is the discount rate per compounding period, and n is the total number of compounding periods.

Marcos's annuity:

  • Payment (Pmt) = $2,500
  • Discount rate (r) = 0.05/2 = 0.025 (since payment is every two years)
  • Number of payments (n) = 10/2 = 5

Using these details, we calculate:

PV = $2,500 * [(1 - (1 + 0.025)^-5) / 0.025]

PV = $2,500 * 4.64583... (factor obtained from the formula)

PV ≈ $11,614.58

So the present value of the annuity that Marcos receives is approximately $11,614.58.

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If coal mine tonnage can be shipped elsewhere cheaply, but a coal-fired power plant adjacent to the mining operation is not redeployable to other uses, what organizational form would be adopted by the power plant owners?

Answers

Answer:

vertical integration

Explanation:

The plant owners would have to adopt a vertically integrated organization because the plant is not redeployable to other uses and is dependent on the supply chain/complementary assets. Vertical integration occurs when an organization owns and controls it's distribution or supply chain in order to maximise profits and reduce costs or inefficiency. By controlling the supply chain, the chain of distribution of the coal mine tonnage can be improved in terms of efficiency and value in revenue.

An increase in savings by consumers is seen as a(n):_________. a. decrease in investment spending in the economy increase in government spending in the economy.
b. decrease in exports in the economy.
c. increase in imports in the economy.
d. leakage in spending in the economy.

Answers

Answer:

d. leakage in spending in the economy.

Explanation:

In the economy firms spend money on labour, input, and business expansion. While in the personal household there is spending on food, rent, and other expenses.

When money is taken out of this cycle and not used for a particular purpose then it is considered to be a leakage.

Leakages include taxes savings and imports.

Savings occurs when an individual has excess income and decides to reserve some for a future use. This fund does not have a particular use in the economy so it is considered to be a leakage.

Answer:

D. Leakage in spending in the economy.

Explanation:

It is observed that if consumers have a rise in their wages, they tend to benefit and this helps the economic situation of the said country or nation as seen in some economies of the world lately. Also alteration in interest rates can have different consumer effects which ranges from spending habits depending on a number of factors to other habits that may end up boosting the economy also current rate levels, expected future rate changes, confidence of the consumer, and the overall health of the economy.

A company sold equipment for $100,000; the equipment had cost $300,000 and had accumulated depreciation of $180,000. The company’s journal entry to record the sale of the equipment would include a

Answers

Answer:

Debit to loss on sale of equipment of $20,000

Explanation:

Data provided in the question:

Selling cost of the equipment = $100,000

Cost of the equipment = $300,000

Accumulated depreciation of the equipment = $180,000

Now,

The book value of the equipment

= Cost of the equipment - Accumulated depreciation

= $300,000 - $180,000

= $120,000

Therefore,

Proceeds for selling

= Selling cost of the equipment - Book value of the equipment

= $100,000 - $120,000

= - $20,000

Here, the negative sign depicts a loss

Hence,

The company’s journal entry to record the sale of the equipment would include a Debit to loss on sale of equipment of $20,000

Final answer:

The company's journal entry would include a debit to Accumulated Depreciation, a debit to Loss on Sale of Equipment, and credits to Equipment and Cash.

Explanation:

The company would record the sale of the equipment with the following journal entry:

Debit: Accumulated Depreciation - $180,000

Debit: Loss on Sale of Equipment - (Sale Price - Book Value)

Credit: Equipment - $300,000

Credit: Cash - $100,000

The debit to Accumulated Depreciation reduces the accumulated depreciation on the balance sheet. The debit to Loss on Sale of Equipment records the difference between the sale price and the book value as a loss. The credit to Equipment removes the asset from the balance sheet. The credit to Cash reflects the cash received from the sale.

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Larkspur, Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 80 units were sold. Date Explanation Units Unit Cost Total Cost May 1 Inventory 34 $9 $306 15 Purchase 26 10 260 24 Purchase 40 11 440 Total 100 $1,006 Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost $Enter the Weighted-average unit cost in dollars eTextbook and Media Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST The ending inventory at May 31 $Enter a dollar amount $Enter a dollar amount $Enter a dollar amount

Answers

Answer:

The average cost will be "$201". The further explanation is given below.

Explanation:

At May 31,                              FIFO               LIFO                Average cost

The ending inventory             $220               $180                    $201

Going to end Inventory Computation together under Quarterly inventory management system will be:  

At $11 = $220

  • FIFO = 20 Units

At $9 = $180

  • LIFO = 20 Units
  • Average Cost = 20 Units  

$10.06 = $201.2 i.e $201.

The character of a company's corporate culture is a product of:A. the shared values and core business principles and beliefs that management preaches and practices.B. its standards of what is ethically acceptable and what is not and the stories that get told over and over to illustrate and reinforce the company's shared values, business practices, and traditions.C. the company's approach to people management and the "chemistry" and "personality" that permeates its work environment.D. the work practices and behaviors that define "how we do things around here."E. All of these.

Answers

Answer: Option E

               

Explanation: Corporate culture refers to the values and beliefs of an organisation that originates from its several different factors like strategy, customers and investors etc. The corporate culture of an organisation affects the attitude and behavior of all its members.

It sometimes works as a guide when the organisation faces an ethical dilemma. In a healthy corporate culture every employee in the organisation is treated with respect regardless of his or her status.

Thus, from the above we can conclude that the correct option is E.

feels energized coming to work and loves her office environment. She feels comfortable asking fellow workers for help, and they are more than happy to oblige. The team even has dinners together every Thursday after work. What aspect of the company is Kristin happy with

Answers

Answer:

a. Organization culture

Explanation:

Organization culture refers to the working culture in an organization in which the employees behavior, rules, regulations, procedures, policies, plans are applied

Other than this, it also involves incentive schemes, flexible time, cab service, medical insurance, and other perks

Since in the given situation, she feels energized and lover her office environment also they have team dinners on every Thursday after work

So this represents the organization culture

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