Answer:
a) The PV of the quarterback's contract is 13.91 million
b) The PV of the receiver's contract is 14.42 million
.
c) The Receiver is better paid
Explanation:
a)
PV of quarterback
= 3.1/1.09 + 3.1/1.09^2 + 3.1/1.09^3 + 3.1/1.09^4 + 3.1/1.09^5 + 3.1/1.09^6
= 3.1/0.09*(1 - (1/1.09)^6)
= 13.91 million
Therefore, The PV of the quarterback's contract is 13.91 million
.
b)
PV of receiver's contract
= 5 + 2.1/1.09 + 2.1/1.09^2+2.1/1.09^3+2.1/1.09^4+2.1/1.09^5+2.1/1.09^6
= 5 + 2.1/0.09*(1 - (1/1.09)^6)
= 14.42 million
Therefore, The PV of the receiver's contract is 14.42 million
.
c) Since the PV of the quarterback's contract is less than the PV of the receiver's contract, The Receiver is better paid.
It makes the biloating rating obecyive monplly to the form of the inverstjgatdd
Answer:
Increase by $97,650
Explanation:
Increment Sale $247,500
(450 * $550)
<u>Less Increment cost</u>
Direct materials $90,000
(450 * $200)
Direct labor $36,000
(450 * $80)
Manufacturing overhead $20,250
(450 * $150 * 30%)
Administrative expenses <u>$3,600</u> <u>$149,850</u>
(450 * $80 * 10%)
Profit will increase by <u>$97,650</u>
Answer:
The correct answer is:
True
Explanation:
The business cycle is a model that let see how the GDP of a country changes through time. Business cycle is classified in four different stages peak, trough, contraction, and expansion. These kind of fluctuations normally occur in the trade, production and all the economic activity of a country. The business cycle refers to the changes or fluctuations that can be experienced in the economic model measured by the GDP (Gross Domestic Product) and it is reflected in the increases or decreases in economy.
Answer:
The answer is B.
Explanation:
Some business transactions are so huge or large to the extent that there might be omission or error in recording transactions when they occur.
Adjusting entries are done to update entries for previously unrecorded expenses or revenues. They are usually done at the end of the months.
Since accrual methods are the most preferred, they are done to make Financial statement achieve the objective of 'completeness'
