Answers
Answer:
162075.97 dollars.
Explanation:
The time period of annuity = 15 years
Annuity amount = $1300 per month
The interest rate for the first six-year = 10%
Monthly interest rate = 10% / 12 = 0.83%
Thus number pf periods = 6 * 12 = 72
Interest rate for another 9 years = 8%
Monthly interest rate = 8% / 12 = 0.67%
Number of period = 8 * 12 = 96
Use the below formula to find the present value of the annuity.
Related Questions
Warr Company is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected. Year 0 1 2 3 4 Cash flows -$1,300 $450 $450 $450 $450 14.16% 14.42% 15.31% 15.84% 16.23%
Jarett Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technological advantages (which translate into cost savings) over the existing machine. Information on each machine follows: Old machine New machine Original cost $9,000 $20,000 Accumulated depreciation 5,000 0 Annual cash operating costs 9,000 4,000 Current salvage value of old machine 2,000 Salvage value in 10 years 500 1,000 Remaining life 10 yrs 10 yrs Refer to Jarett Motors. The $4,000 of annual operating costs that are common to both the old and the new machine are an example of a(n):________ a. opportunity cost b. irrelevant cost c. future avoidable cost d. sunk cost
Notice that real GDP trends upward over time but experiences ups and downs in the short run. These short-run fluctuations in real GDP are often referred to as . True or False: Short-term fluctuations in real GDP are irregular and unpredictable. True False Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1950
holds huge reserves of oil. Assume that at the end of 2017, Amplify Petroleum's cost of oil reserves totaled $ 80 comma 000 comma 000, representing 100 comma 000 comma 000 barrels of oil. Suppose Amplify Petroleum removed and sold 20 comma 000 comma 000 barrels of oil during 2018. Journalize depletion expense for 2018.
Answers
Answer:
B
Explanation:
Answers
Answer:
Investors structure is a significant part of an organization. In this manner, it is important to provide the significant data so they can take inform decision. The yearly report give the imperative data the utilization of which they can shape solid justification for taking choices. In any case, most of the time, dominant part of the investors/speculators barely spend their valuable time on examining every single figure gave in the financials. They experience the nuts and bolts and basics as it were. In this manner just material realities must be unveiled in the reports as contenders might be peering toward on the subtleties. That is, it is significant not to reveal the "exchange insider facts" of the organization in its reports. A lot of data prompts data over-burden with which contenders may exploit. It ought to likewise be dealt with that what must be incorporated is incorporated as a general rule.
Final answer:
As a CFO of a publicly-traded company, one should focus on providing meaningful and relevant information to shareholders without revealing strategic specifics that would benefit competitors. This balance can be achieved through effective disclosure management.
Explanation:
As the CFO of a publicly-traded company, you must balance between sharing too much information which can aid your competitors and offering comprehensive details to investors for performance evaluation. The key to resolving this conflict lies in disclosure management. More specifically, you should focus on providing meaningful and relevant information to support investors' decision-making without revealing strategic specifics that would help competitors. For example, quantitative information related to sales, cost, profit, and balance sheet items could be released, along with commentary on operational and financial performance. However, strategic plans, detailed product plans and similar items that could give an advantage to competitors should not be disclosed.
Learn more about Disclosure Management here:
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Answers
Answer:
$31.68
Explanation:
The computation of the stock price is shown below:
= Dividend for year 1 ÷ (1 + required return)^number of years + Dividend for year 2 ÷ (1 + required return)^ number of years + Dividend for year 3 ÷ (1 + required return)^ number of years + Dividend for year 4 ÷ (1 + required return)^ number of years
= $5.30 ÷ (1 + 9.8%) + $9.40 ÷ (1 + 9.8%)^2 + $12.25 ÷ (1 + 9.8%)^3 + $14.25 ÷ (1 + 9.8%)^4
= 4.82695810564663 + 7.79692170895252 + 9.25399090557962 + 9.80404969365523
= 31.681920413834
= $31.68
Answers
Answer:
The expected January 31 Accounts Payable balance is $6,590
Explanation:
The December Accounts Payable balance is $7,900 - this is the 50% purchase amount in December and will be paid in January.
In January, Fortune Company will pay 50% purchase amount in December and 50% purchase amount in January.
Expected payment = $7,900 + 50% x $13,180 = $14,490
At January 31, the expected Accounts Payable balance:
$13,180 x 50% = $6,590
Final answer:
The expected Accounts Payable balance for Fortune Company at the end of January is $10,540, taking into account the payables carried over from December and half of January's purchases.
Explanation:
The question is regarding the calculation of the expected Accounts Payable balance at the end of January for Fortune Company. The company's payment schedule shows a split of 50% payment in the month of purchase and 50% in the following month. To compute the January 31 Accounts Payable, we need to consider the December Accounts Payable which is to be paid in January (50% of $7,900 = $3,950), and half of January's purchase ($13,180) which will amount to $6,590. Hence the expected January 31 Accounts Payable is: $3,950 (December's payable) + $6,590 (January's payable) = $10,540.
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Answers
Ryan needs to take care of his expenses. He is not settled yet and frequent relocation to different cities in a short career as a bartender is definitely not efficient.
Sam on the other hand does know how to manage his finances and need not have special attention.
- Personal finance management is a quality every individual should imbibe in himself and should inculcate following it in the long run.
- Ryan might experience cash crisis sooner if he doesn't start saving from his limited income that he has because in case of emergency he might have to depend upon credits which by far is the worst debt someone can get himself into.
- Ryan cannot continue to be a bartender for long age and should think of starting something on his own in which he has expertise. e.g. He can own a small bar in his hometown that gives him much better earnings.
Hence, Ryan needs to get long term care insurance for himself and secure any emergencies that might occur.
To know more about personal finance, click the given link below.
Answer -Ryan
Explanation: Ryan just moved from a city in the USA to Florida and works as a bartender which includes he owns a small home compared to his brother that has a better life than Ryan. he needs the long term care insurance .
Answers
Answer:
D. decreasing returns to scale.
The answer and procedures of the exercise are attached in the image below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.