Answer:
Instructions are below.
Explanation:
Giving the following information:
Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly.
To calculate the present value, first, we need to determine the final value.
i= 0.09/12= 0.0075
n= 30*12= 360
<u>Martha:</u>
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= montlhy payment
FV= {200*[(1.0075^360)-1]}/0.0075 + {[200*(1.0075^360)]-200}
FV= 366,148.70 + 2,746.12
FV= 368,894.82
Now, the present value:
PV= FV/ (1+i)^n
PV= 368,894.82/ 1.0075^360
PV= $25,042.80
<u>Stewart:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly payment
FV= {200*[(1.0075^360)-1]}/0.0075
FV= 366,148.70
PV= 366,148.70/1.0075^360
PV= $24,856.37
Martha has a higher present value because the interest gest compounded for one more time.
Answer:
b. $4,908,000
Explanation:
According to the FASB GAAP, the straight line method is used in this given question which is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($40,900,000 - $4,090,000) ÷ (15 years)
= ($36,810,000) ÷ (15 years)
= $2,454,000
In this method, the depreciation is same for all the remaining useful life
For two years, the accumulated depreciation would be
= Annual year depreciation × number of years
= $2,454,000 × 2 years
= $4,908,000
Answer:
The correct answer is letter "A": Account A.
Explanation:
Compound interest is the interest an investor earns on the original investment plus all the interest earned on the interest that has accumulated over time. It is also called <em>interested on interested</em>. The frequency of compounding could be scheduled from daily to annually. The more frequent the compound interest is set, the most beneficial it is for the investor.
In that sense, account A will provide Julian with the highest annual return since it gives him a compound interest on a monthly basis v. annually with account B.
A company’s management team should give serious
consideration in bidding for a private label footwear contract in a geographic
region when the company’s production capacity in one or more geographic regions exceed or else be idle because the number of pairs of branded
footwear is below full production capacity based on the company managements planned to be produce.
Answer:
Shortening the duration of critical path tasks.
Explanation:
The critical path method is relevant for achieving effective project management. By visualizing the project's activities, it is possible to analyze the time needed to complete the tasks and avoid possible delays. The possibility of calculating the duration of completion time, the longest or the shortest, for each activity, also helps in reducing uncertainties, as it helps in reducing the unexpected surprises that may occur in the project.
This method also guarantees the advantage of helping to reduce project time by the possibility of visualizing which tasks can be reduced, as the method generates a greater understanding of the project's deadline as a whole, allowing a clearer view on which tasks can be changed and which should remain unchanged.
