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adoni [48]
1 year ago
14

What is the present value of $6,811 to be received in one year if the discount rate is 6.5 percent?

Business
1 answer:
Marat540 [252]1 year ago
3 0

The present value of of $6,811 to be received in one year if the discount rate is 6.5 percent  will be $6, 395.31.

What does Present Value mean?

A financial concept that calculates the current value of a future sum of money or stream of cash flows is present value. It's used to compare the relative worth of different amounts of money that aren't available at the same time. The inverse of future value. The sum of future investment returns discounted at a specified rate of return is calculated as the present value of money you expect from future income.

What is Financial concept?

Financial concepts are the fundamental principles and theories of finance, which provide guidance on how to assess and manage financial risks, return, and value. These concepts include the time value of money, diversification, risk-return trade-off, capital budgeting, and portfolio selection. Financial concepts are essential for making sound financial decisions and investments.

The procedure to find an present value:

Present Value = FV/ (1+i)^n

6,811/(1+0.065)^1

6, 395.31

To know more about Present value,

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Answer: Mutually exclusive

Explanation:

In probability theory and logic, two propositions or events are disjoint or mutually exclusive if both events cannot occur at the same time. An example is the outcomes derived from the single toss of a coin which either be head or tail

In the project example given, the theory used is called mutually exclusive since both projects can not be chosen at the same time and it is only one project at w time. Mutually exclusive events are also called independent events since they have no effect on the viability of the other options.

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4 years ago
If a company is considering the purchase of a parcel of land that was acquired by the seller for $90,000 is offered for sale at
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Answer:

$147,000

Explanation:

According to the historical cost principle, the assets of the company should be recorded at the purchase price or acquisition price in the financial statements

Since in the given situations many values are given with respect to the acquisition done by the seller, for tax turquoises, etc

But it is recorded at the purchase price i.e $147,000

8 0
4 years ago
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during
ddd [48]

Answer:

Job W= $2,706

Explanation:

<u>First, we need to calculate the predetermined overhead rate based on allocated overhead to Job V:</u>

Job V:

Direct labor= $9,500

Allocated overhead= $6,270

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

6,270= Estimated manufacturing overhead rate*9,500

6,270/9,500= Estimated manufacturing overhead rate

Estimated manufacturing overhead rate= $0.66 per direct labor dollar.

<u>Now, for Job W:</u>

<u />

Job W= 0.66*4,100

Job W= $2,706

6 0
3 years ago
The primary goal of financial management is to maximize the: Question 4 options: current net income. net working capital. the nu
diamong [38]

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The main objective of financial management is to maximize the market value of the existing outstanding stock, and this could be achieved only when the financial resources of the organisation are seemed as strong in the eyes of investors.

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3 years ago
#30 Caleb wants to start a business in the health and wellness industry, but before taking the time and effort to create this bu
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Caleb wants to start a business in the health and wellness industry, but before taking the time and effort to create this business, he should know how this business sector has recently performed and where it is headed. Basically, Caleb needs to educate himself on industry trends. (Option A)

<h3>What is this questions about?</h3>

These questions are about business administration. See other answers below.

Financial accountants prepare financial information for people who are both inside and outside the company to assess if the company is performing well. (Option C)

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