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2 years ago

1. Which of the following is true about finding the present value of cash flows?

Business

1 answer:

Bogdan [553]2 years ago

4 0

Based on present value calculations, the following are true:

A. Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return.
B. The security that earns an interest rate of 6.00%.
B. An investment that matures in five years.
B. Other things remaining equal, the present value of a future cash flow decreases if the discount rate increases.

<h3>What is true of present value calculations?</h3>

Present value relies on the interest rate and the number of periods that an investment. The longer the investment period, the lower the present value.

The higher the interest rate, the lower the present value as well, For this reason, the 6% investment will be worth less today and the five year investment will have a lower price today.

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True or false: forecasts are set on the marketing budget detail spreadsheet.

Sladkaya [172]

The statement above is true. Forecasting is the utilization of notable information to decide the heading of future patterns. Organizations use estimating to decide how to apportion their financial plans or plan for expected costs for an up and coming timeframe. This is regularly in view of the anticipated interest in the products and ventures they offer.

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3 years ago

Read 2 more answers

The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead co

docker41 [41]

Answer:

Variable manufacturing overhead rate variance = 80,000 favorable

Explanation:

Given:

Overhead rate variance = $1.70 per hour

Total machine hour = 160,000 hour

Actual overhead costs = $192,000

Find:

Variable manufacturing overhead rate variance

Computation:

Variable manufacturing overhead rate variance = [Standard overhead rate - Actual overhead rate]Actual hour

Variable manufacturing overhead rate variance =[1.7 - (192,000 / 160,000)]160,000

Variable manufacturing overhead rate variance = [1.7 - (1.2)]160,000

Variable manufacturing overhead rate variance = [0.5]160,000

Variable manufacturing overhead rate variance = 80,000 favorable

6 0

2 years ago

brussels enterprises issues bonds at par dated january 1, 2021, that have a $2,700,000 par value, mature in four years, and pay

Nadusha1986 [10]

The journal entry for the issuance of bonds for cash on January 1 is: Debit Cash $2,700,000, Credit Bonds payable $2,700,000.

<h3>Journal entry</h3>

1. January 1

Debit Cash $2,700,000

Credit Bonds payable $2,700,000

(To record issuance of bonds for cash)

2. June 30

Debit bond Interest expense $81,000

Credit Cash $81,000

($2,700,000×6%/2)

(To record first semiannual interest payment)

December 31

Debit bond Interest expense $81,000

Credit Cash $81,000

($2,700,000×6%/2)

(To record second semiannual interest payment)

3. December 31, 2021

Debit Bonds payable $2,700,000

Credit Cash $2,700,000

(To record payment of bonds payable)

Therefore the journal entry for the issuance of bonds for cash on January 1 is: Debit Cash $2,700,000, Credit Bonds payable $2,700,000.

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6 0

1 year ago

Assume that an employee of a FINRA member firm opens a securities account at another FINRA member firm. If requested, the employ

murzikaleks [220]

Answer:

C) confirmations and account statements

Explanation:

If an employee of a FINRA member firm wants to work for another FINRA firm, he/she must notify his/her employing member firm, and his/her new employer must send duplicate confirmations and account statements only if requested by the member employing firm. The member employing firm does not have to grant any type of approval or permission.

The Financial Industry Regulatory Authority (FINRA) regulates member brokerage firms and exchange markets. FINRA is regulated and overseen by the SEC. They issue licences to individuals and admits companies into the financial trading industry.

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3 years ago

The Acme Widget Company has found that if widgets are priced at s 389, then 1000 will be sold. They have also found that for eve

kvv77 [185]

Answer:

See the explanation below.

Explanation:

a. The number of widgets that will be sold

Let y represent the number of widgets that will be sold, and and we already have x as price of widget, we therefore have:

y - 1,000 = (-600/10) * (x - 389)

y - 1,000 = -60 * (x - 389)

y = 1,000 - [60 * (x - 389) ]

y = 1,000 - 60x + 23,340

y = 24,340 - 60x

b. The revenue generated by the sale of widgets

Let R represent Revenue, therefore we have:

R = xy

R = x(24,340 - 60x)

R = 24,340x - 60x²

c. The cost of producing just enough widgets to meet demand

Let C represent total cost, we therefore have:

C = 8,000 + 97.25y

C = 8,000 + 97.25(24,340 - 60x)

C = 8,000 + 2,367,065 - 5,835x

C = 2,375,065 - 5,835x

d. The proft from selling widgets

Let P represent profit, we therefore have:

P = R - C

P = 24,340x - 60x² - (2,375,065 - 5,835x)

P = 24,340x - 60x² - 2,375,065 + 5,835x

P = - 60x² + 30,175x - 2,375,065

e. Find the price that will maximize profits from the sale of widgets

Profit is optimum when dP/dx = 0

Therefore, we have

0 = - 120x + 30,175

120x = 30,175

x = 30,175/120 = $251.46

4 0

3 years ago