Answer:
- <em>The cash flow stream from investment X has higher present value than the the cash flow stream from investm Y.</em>
Explanation:
<u></u>
<u>1. Present value of investment X</u>
- Annual payment: C = $4,200
- Number of years: t = 8
- Rate: r = 5%
- PV₁ = ?
Formula:
![PV=C\times [\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}]](https://tex.z-dn.net/?f=PV%3DC%5Ctimes%20%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5D)
Substitute and compute:
![PV_1=\$ 4,200\times [\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^8}]](https://tex.z-dn.net/?f=PV_1%3D%5C%24%204%2C200%5Ctimes%20%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E8%7D%5D)
<u>2. Present value of investment Y</u>
- Annual payment: C = $6,100
- Number of years: t = 5
- Rate: r = 5%
Formula:
Substitute and compute:
![PV_2=\$ 6,200\times [\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^5}]](https://tex.z-dn.net/?f=PV_2%3D%5C%24%206%2C200%5Ctimes%20%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E5%7D%5D)
Hence, the cash flow stream from investment X has higher present value than the the cash flow stream from investm Y.
Answer:
the amortization of Other Comprehensive Loss for 2022 is $38,370
Explanation:
The computation of the amortization of Other Comprehensive Loss for 2022 is shown below;
= (Accumulated other comprehensive loss - 10% of Projected benefit obligation) ÷ given no of years
= ($503,700 - 10% of $1,200,000) ÷ given no of years
= ($503,700 - $120,000) ÷ 10 years
= $38,370
hence, the amortization of Other Comprehensive Loss for 2022 is $38,370
The same would be considered
Answer:
Total PV= $2,736.39
Explanation:
Giving the following information:
Year Cash Flow
1 $ 870
2 950
3 0
4 1,540
<u>First, we need to calculate the real annual discount rate:</u>
Quarterly Discount rate= 0.08/4= 0.02
Real annual interest rate= [(1+i)^n] - 1
Real annual interest rate= [(1.02^4) - 1]
Real annual interest rate= 0.08243
<em><u>Now, we can calculate the present value of the cash flows:</u></em>
PV= Cf/(1+i)^n
Year 1= 870/1.08243= 803.75
Year 2= 950/1.08243^2= 810.82
Year 4= 1,540/1.08243^4= 1,121.82
Total PV= $2,736.39
Answer:
See below.
Explanation:
Total Variable over head variance = Spending variance + Efficiency variance
Total Spending variance = VOH - SVOR × AH
Total Efficiency variance = SVOR * ( AH - SH)
Assuming we only want total spending variance then option A is correct, however if we assume total overhead variance is required option E would be correct as we also need to account for the efficiency variance of overhead as per the difference between actual and standard hours worked.
Hope that helps.
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