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3 years ago

Select the best (most informative) answer. present value involves _ whereas future value involves _.

1 answer:

4 0

Present Value involves discounting, and future value involves compounding.

The find present value of a dollar a year from now, we must discount by the discount rate, since a dollar a year from now is not worth as much as a dollar today.

To find the future value (in a year) of a dollar we receive today, we increase the dollar by the discount rate, since our dollar today is worth more than a dollar a year from now.

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A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Bi

azamat

Answer:

Memphis $170,000

Biloxi $160,000

Birmingham $175,000

Explanation:

Preparation of an economic analysis of the three locations

Memphis economic analysis using this formula.

Economic analysis=(Building, equipment, administration costs+Increased transportation costs+(Expected volume *Labor and materials per units)

Let plug in the formula

Memphis Economic Analysis = $40,000 + $50,000 + (10,000 units *$8/unit )

Memphis Economic Analysis = $40,000 + $50,000 + $80,000

Memphis Economic Analysis = $170,000

Therefore Memphis Economic Analysis is $170,000

Preparation of Biloxi Economic Analysis

Biloxi Economic Analysis = $60,000 + $60,000 + (10,000 units *$4/unit )

Biloxi Economic Analysis = $60,000 + $60,000 + $40,000

Biloxi Economic Analysis = $160,000

Therefore Biloxi Economic Analysis is $160,000

Preparation of Birmingham Economic Analysis

Birmingham Economic Analysis = $100,000 + $25,000 + (10,000 units *$5/unit )

Birmingham Economic Analysis = $100,000 + $25,000 + $50,000

Birmingham Economic Analysis = $175,000

Therefore Birmingham Economic Analysis is $175,000

Therefore the summary of the economic analysis of the three locations are:

Memphis $170,000

Biloxi $160,000

Birmingham $175,000

5 0

3 years ago

California Adventures issues 5,000 shares of 8%, $100 par value preferred stock at the beginning of 2020. All remaining shares a

never [62]

Answer:

See below.

Explanation:

Since the preferred stock is not cumulative only the current years' dividend is payable on these stocks.

Preferred stock dividend = (5000 * 100) * 0.08 = $40,000

Of the declared dividend of $100,000,

Preferred Dividend = $40,000

Ordinary share dividend = $60,000

If the shares were cumulative, the prior year dividends would also be payable form the declared dividends bringing the total preferred dividend to $80,000.

Hope that helps.

3 0

3 years ago

Other than getting laborers to work their land, how did the sharecrop system benefit landowners? a. Government subsidies provide

LekaFEV [45]

The answer is D. It reduced their risk when cotton prices were low.

8 0

3 years ago

Budgeting material purchases budget. The Howell Company has prepared a sales budget of 42,000 finished units for a 3- month peri

tangare [24]

Answer:

The number of Gallon materials Howell company should buy is 166000 Gallons