The future amount of an investment with compound interest can be calculated through the equation,
F = P x (1 + ieff)^n
where F is the future amount, P is the current value of the money, ieff is the effective interest (rate per year), and n is the number of years.
From the equation, all are given except for the effective interest, i. Now, substituting the known values,
14,398.87 = (7,775) x (1 + ieff)^14
The value of ieff from the equation is 0.044999.
Since the value of the ieff when translated to percentage is equal to 4.5% as well, the interest rate is compounded yearly.
Answer:
Yes it should as the net present value at the firm WACC is positive $ 4,156.54
Explanation:
we are given with the after-tax cost for the machine and after-tax cost of the labor cost savings the new machine will provide
So we should check if the present value of the savings is greater or equal than the machine cost:
C $ 8,000
time 10 years
rate=WACC= 0.1
PV $49,156.5368
Net present value:
inflow - cost
49,156.54 - 45,000 = 4,156.54
Answer:
The answer is option C. She may immediately sell the bonds but it is unclear how much money they will sell for.
Explanation:
She may immediately sell the bonds but it is unclear how much money they will sell for.
Investors who hold onto their bonds until maturity are assured of to receive the face value of the bond. In our case, if Andrea would have chosen to hold her $5,000 bond investment for 10 years, she would have been assured the bonds face value, however since she prefers to use the cash to work abroad, she can sell the bonds immediately.
Selling a bond before it's maturity date can either be beneficial or detrimental. This depends on the value of the bond at the time of sale. If at the time of sale the bond would have gained value, then the bond will sell at a higher price than when it was bought. On the other hand, if the bond at the time of sale has lost value, then the bond will sell at a lower price than the price which it was bought.
In our case, the best option for Andrea would be to sell the bonds immediately, since she really needs the cash. If it happens that at the point at which she sells the bonds they will have gained value, then she will have more than $5,000 cash, however, if at the point she decides to sell the bonds they will have lost value, then she will have less than $5,000 depending on how much value was lost from the time she bought the bonds and the time she sold the bonds.
A. Supervise staff members to monitor their progress.
The fraud examiner would have to check on staff to see their routine and check if statistical reports match up with claims. the examiner would also have to check is the company's reputation is bad. this might shed some light.
Answer:
$6,480,000
Explanation:
The computation of the amount of the current liabilities is shown below:
Total assets of $11,200,000
Less: Noncurrent assets $1,480,000
Current Assets = $9,720,000
Now as we know that
Current ratio = Current Assets ÷ Current Liabilities
Current Liabilites is
= $9,720,000 ÷ 1.5
= $6,480,000
hence, the current liabilities is $6,480,000
