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3 years ago

McCann Co. has identified an investment project with the following cash flows.

Business

2 answers:

Vlada [557]3 years ago

8 0

Answer:

Present values @ 11%

Years Present Value

1 $775

2 $982

3 $1075

4 $1070

Present values @ 16%

Years Present Value

1 $741

2 $899

3 $942

4 $897

Present values @ 30%

Years Present Value

1 $662

2 $716

3 $669

4 $569

Explanation:

Cash flows that will be received in future do not have same value as today, because if received today there is an opportunity to reinvest it and get some return. For this reason we calculate the present value of future cash flow.

Discounting method is used to calculate the present values. using following formula of discounting we calculate the PV.

PV = FV / ( 1 + r )^n

Present values @ 11%

Years Cash Flows Discounting Present Value

1 $860 860 x ( 1 + 11%)^-1 $775

2 $1,210 1,210 x ( 1 + 11%)^-2 $982

3 $1,470 1,470 x ( 1 + 11%)^-3 $1075

4 $1,625 1,625 x ( 1 + 11%)^-4 $1070

Present values @ 16%

Years Cash Flows Discounting Present Value

1 $860 860 x ( 1 + 16%)^-1 $741

2 $1,210 1,210 x ( 1 + 16%)^-2 $899

3 $1,470 1,470 x ( 1 + 16%)^-3 $942

4 $1,625 1,625 x ( 1 + 16%)^-4 $897

Present values @ 30%

Years Cash Flows Discounting Present Value

1 $860 860 x ( 1 + 30%)^-1 $662

2 $1,210 1,210 x ( 1 + 30%)^-2 $716

3 $1,470 1,470 x ( 1 + 30%)^-3 $669

4 $1,625 1,625 x ( 1 + 30%)^-4 $569

As the discount rate increase the Present value of the cash flows decreases because of discounting factor.

Ugo [173]3 years ago

7 0

Answer:

The present value at 11% is $3,902.13,$3,479.85 at 16% and $2,615.57 at 30%

Explanation:

The present value formula is given as :

PV=FV/(1+r)^n

Where FV is the future value of cash flows such as the ones given in the question

r is the rate of return at 11%,16% and 30%

n is the applicable time horizon relevant to each of the cash flow.

Find attached spreadsheet for detailed calculations.

Download xlsx

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The Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act) was designed to protect the rights of individual union m

Artist 52 [7]

Answer:

The correct answer is the first option: True.

Explanation:

To begin with, the "Labor Management Reporting Disclosure Act", or also known as Landrum-Griffin Act, was the name given to a law from the United States that basically has its main purpose in the protection of rights from the individual members of the Unions. This law focus particulary in the relationship that exists between the Union as an organization of power and the members inside due to a matter of internal affairs in the search of reducing abuse of power and position as well. That is why that this law seeks for the benefits of the individuals parties in the wake of the increase of their rights.

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3 years ago

Scarbrough Corp. factored $600,000 of accounts receivable to Duff Corp. on October 1, year 2. Control was surrendered by Scarbro

Virty [35]

Answer:

Scarbrough will receive and record cash of $538,685

The journal entry to record this transaction would be:

Debit Credit

Cash $2,900,300

Interest Expense $89,700

Notes Payable $2,990,000

Debit Cash for $2900300, debit Interest Expense for $89700, and credit Notes Payable for $2990000

Explanation:

In order to calculate the amount Scarbrough will receive and record cash we would have to make the following calculation:

Scarbrough will receive and record cash=Receivables-Amount of the hold back-Withheld as fee income-Less: Withheld as interest expense

Receivables= $600,000

Amount of the hold back=$600,000 x 5%=$30,000

Withheld as fee income=$600,000 x 3%=$18,000

Withheld as interest expense=$600,000 × 15% × 54/365=$13,315

Therefore, Scarbrough will receive and record cash=$600,000- $30,000-$18,000-$13,315=$538,685

Scarbrough will receive and record cash of $538,685

According to the given data to journal entry to record this transaction would be the following:

Debit Credit

Cash $2,900,300

Interest Expense $89,700

Notes Payable $2,990,000

Interest Expense=$2,990,000 x 3%=$89,700

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2 years ago

A stigmatized property is one: (a) Where physical damage makes it undesirable to buyers (b) That a historical society owns and m

katrin [286]

Answer:

Explanation:

A stigmatized property is one that has been psychologically impacted by an event that occurred on the property or one that has been suspected to have occurred on that property. Such a property is now "stigmatized" because such an event will have a drastic effect on multiple values and aspects of the property.

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2 years ago

In what situations is top-down planning likely to be superior to bottom-up emergent strategy development

Marianna [84]

Answer is given below :

Explanation:

Both strategies aim to convey and process knowledge between and within the organization. The top-down approach for sub-categories to gain insights at the senior management level breaks down a system.
This is a great tool to help managers identify areas of improvement using quota and monthly matrix goals. There are flaws in this strategy, employees are not involved in the process and managers do not understand the full impact of the changes made.
Morality can be affected because this strategy is motivated by fear and encouragement. The bottom line is that in some cases it is more complex, although employees feel motivated to provide more authority and quality work. The information is processed to a minimum and communicated to management.
This may help in some areas because administrators may not fully understand the process. I should use the military as an example for a top down strategy.
It works on the battlefield when there is no time to discuss or motivate employees. Top down is used when there is a slight change in environmental factors.

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3 years ago

This a type of unemployment that always exists and are relatively stable over time, including seasonal, structural, and friction

Darya [45]

<u>Answer: </u>Natural unemployment

<u>Explanation:</u>

Natural unemployment always exists even in a healthy economy this is because the people keep changing their jobs and they even leave the current job in search of the new ones. Natural unemployment also includes other types of unemployment such as seasonal, structural and frictional unemployment types.

Also some people might possess skills that are not necessary in the labor market. The natural unemployment is still in the economy even when there is technological advancement, industry expansion. New labor forces enter into market every year and people search jobs for better opportunities.

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3 years ago

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