Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, a
igor_vitrenko [27]
Answer:
The present value of cash flows is $ 5,292.13
Explanation:
The present value is today's equivalence of the company's future cash flow discounted using the 7% interest rate as a discount rate.
Formula for pv of a cash flow=cash flow/(1+r)^n
r is the 7% interest rate
n is the relevant year each cash flow relates to
PV=$1,350/(1+7%)^1+$1550/(1+7%)^2+$1550/(1+7%)^3+$1850/(1+7%)^4=
$ 5,292.13
Answer:
The correct answer is letter "B": nonphysical constraints.
Explanation:
According to the Theory of Constraints (TOC) a constraint is a limiting factor that does not enable companies to perform their work at their maximum capacity for their goals' achievement. In the same sense, nonphysical constraints are not material factors negatively influencing employees' actions. Wages cuts, reduction of benefits, unclear lines of command are examples of that kind of constraint.
Answer:
d. employment and production would fall.
Explanation:
Economic agents have expectations about the parameters of an economy, such as price, inflation, unemployment rate, etc. If the price falls while economic agents expect the opposite, in the short run production and employment tend to increase. This is because investment decisions had already been made. However, in the medium and long term, economic agents realize that price expectations have not been confirmed and market parameters adjust. Thus, in the face of falling prices, there will be less demand. With lower demand, there will be a decrease in production and thus the employment rate decreases.
Answer: $20000
Explanation:
Since $100,000 is paid for the contract which will provide the use of manufacturing equipment for 5 years, the payment that can be deducted for each of the 5 years will be an equal payment.
Therefore, the payment that X Corp. can deduct in 2018 will be:
= $100,000 / 5
= $20000
Explanation:
December 31, 2016: To record accrued wages for one day (10 workers × $145) = $1,450.
January 4, 2017: To record accrued and current wages.
Wages expense = 10 workers × 3 days × $145 = $4,350
Cash = 10 workers × 4 days × $145 = $5,800.
See attached photo.
