Answer:
Ans. He must save during each of the following 10 years, at the end of each year $32,452.
Explanation:
Hi, in order to find the amount of money that he should have in ten years so he can receive an annual payment of $65,156 for 25 more years (24 payments), we need to bring to present value all 24 payments to year 10. Let me show you the formula.
Where:
A= $65,156
n= 24
r= 0.08
Therefore the present value in year 10 is:
So that is our present value in year 10, or to put it in other words, our future value (if we look at it from year 0). Now we need to find the annuity (amount to save) that with account for $686,012, plus that $100,000 that he already has saved.
Every should look like this.
And we solve this equation for "A".
Best of luck.
Answer:
The amount of depreciation expense that should be recorded for the second year is $28,600
Explanation:
The computation of the depreciation per units or bolts under the units-of-production method is shown below:
= (Original cost - residual value) ÷ (estimated production bolts)
= ($206,520 - $11,000) ÷ (752,000 bolts)
= ($195,520) ÷ (752,000 bolts)
= $0.26 per bolt
Now for the second year, it would be
= Production units in second year × depreciation per bolts
= 110,000 units × 0.26
= $28,600
Answer:
It is not advisable to buy the food truck, since over the 4 years of investment it will show a loss of $ 40,000.
Explanation:
Since Eat at State is considering buying a new food truck, and it will cost $ 65,000, but is expected to generate $ 20,000 in sales over the next 4 years, and at the end of the 4th year, the truck will be sold to Eat Like a Wolverine in Ann Arbor for $ 10,000 (after taxes), and it will require $ 5,000 in additional Net Working capital that will not be recovered when the truck is sold, and the Dean of Food Services will only authorize the purchase if it is cash positive by the end of the 4th year, to determine, using the payback period method if the truck should be purchased and why, the following calculation must be performed:
-65,000 + 20,000 + 10,000 - 5,000 = X
-70,000 + 30,000 = X
-40,000 = X
Therefore, it is not advisable to buy the food truck, since over the 4 years of investment it will show a loss of $ 40,000.
Answer:
$10,500
Explanation:
Bee Inc.
Cash Budget for March
Budgeted Receipts $116,000
Les Budgeted Expenses ($110,000)
Net Cash $6,000
Add Budgeted Beginning Balance $35,000
Balance $41,000
Loan ($51,500 - $41,000) $10,500
therefore,
To attain its desired ending cash balance for March, the company needs to borrow $10,500
