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Vladimir [108]
3 years ago
13

The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $200,000 per year for the next 10 years an

d an additional $1,000,000 at the end of the 10th year. The seller of the jet is charging 6% annual interest.
Business
1 answer:
sdas [7]3 years ago
4 0

Answer:

Liability will be $2,030,412

Explanation:

We need to calculate the present value of future cash flows in order to determine the liability value.

Liability to be recored = PV of $200,000 payment for 10 years at 6% + PV of $1,000,000 at the end of year 10 at 6%

As we know the payment of $200,000 for 10 years is the annuity payment.

Liability to be recored = $200,000 x ( 1 - ( 1 + 6% )^-10 /6% + ( $1,000,000 x ( 1 + 6% )^-10

Liability to be recored = $1,472,017.41 + $558,394.78 = $2,030,412.18

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Multiple Choice Question 38 Vaughn, Inc. has 1000 shares of 5%, $10 par value, cumulative preferred stock and 63000 shares of $1
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Answer:

$0.5 per share

Explanation:

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2 years ago
Which of the following is a major difference between a budget constraint and production possibilities frontier?
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Answer:

c

Explanation:

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The PPF is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.  

So, the PPF exhibits diminishing return. The slope of the PPF is different at different points. this makes the PPF a curve

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3 years ago
An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after
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A deferred annuity is one of the type of contract where they pay some amount of their profit to the owner on the regular basis and it also used by various types of investors for profit purpose.

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