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2 years ago

The simple interest rate is 7% per year. if james deposits 10,000 at the end of 18 months coursehero

Business

1 answer:

monitta2 years ago

4 0

Deposit (PV): $10,000

Years between the 18th month and the fifth year (n) = 3.5

(I)=7% yearly interest rate

Simple interest approach accumulated value equals P*(1+(i*n)).

=1000*(1+(7%*3.5))

=1245

Thus, the total value at the end of five years will be $1245.

Compound interest method accumulated value equals P*(1+i)n

=1000*(1+7%)^3.5

=1267.19

Therefore, the total value after five years will be $1267.19.

Learn more about simple interest here ;

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On January 2, 2015, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciat

bagirrra123 [75]

Answer:

The journal entry is as follows:

Explanation:

January 2 Accumulated Depreciation A/c..............Dr $28,000

Loss on disposal of machine A/c...........Dr $1,000

To Cash A/c.............................................Cr $1,000

To Machinery A/c...................................Cr $28,000

The company pays salvage value so cash is going out of the business, therefore, it is credited. And the salvage value will result in loss on disposal of machine so it is debited. The accumulated depreciation is debited and the account of machine is credited.

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3 years ago

Statement of stockholders’ equity Noric Cruises Inc. began the month of October with the following balances: Common Stock, $150,

Amanda [17]

Answer and Explanation:

The preparation of the statement of stockholder equity is presented below:

Particulars Common Stock Additional Paid in Capital Retained Earnings Total

Balances, October 1 $150,000 $3,225,000 $12,400,000 $15,775,000

Issued Common Stock $50,000 $750,000 $800,000

(50,000 shares × $1) (50,000 shares × $16)

Add: Net Income $2,350,000 $2,350,000

Less: Dividends -$475,000 -$475,000

Balances, October 31 $200,000 $3,975,000 $14,275,000 $1,8450,000

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3 years ago

If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and r

Alex787 [66]

Answer:

there are no cash flows given, so I will use another question as an example:

NCF year 0 = -$1,150,000

NCF year 1 = $275,000

NCF year 2 = $275,000

NCF year 3 = $275,000

NCF year 4 = $275,000

NCF year 5 = $275,000

NCF year 6 = $275,000

NCF year 7 = $275,000

a) when cash flows are the same for all the years, you can use an ordinary annuity factor:

PV = $275,000 x 4.86842 (PV annuity factor, 10%, 7 periods) = $1,338,815.50

NPV = -$1,150,000 + $1,338,815.50 = $188,815.50

b) PV = $275,000 x 3.81153 (PV annuity factor, 18%, 7 periods) = $1,048,170.75

NPV = -$1,150,000 + $1,048,170.75 = -$101,829.25

c) PV = $275,000 x 3.24232 (PV annuity factor, 18%, 7 periods) = $891,638

NPV = -$1,150,000 + $891,638 = -$258,362

If the cash flows are different, then you must discount each cash flow individually.

E.g. NCF year 0 = -$150,000

NCF year 1 = $75,000

NCF year 2 = $85,000

NCF year 3 = $95,000

NPV = -$150,000 + $75,000/1.1 + $85,000/1.1² + $95,000/1.1³ = $59,804.66

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3 years ago

The Up and Coming Corporation's common stock has a beta of 0.9. If the risk-free rate is 4 percent and the expected return on th

Mashutka [201]

Answer:

r = 0.139 or 13.9%

Option e is the correct answer

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate

rM is the market return

r = 0.04 + 0.9 * (0.15 - 0.04)

r = 0.139 or 13.9%

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3 years ago

In the context of supply chain management (scm), ____ refines the production plan by determining the amount of weekly or daily p

ra1l [238]

Some kind of demand management

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3 years ago