Answer:
11%
Explanation:
Compounding is the method used to determine the future worth of an amount today while discounting is the method used to determine the present value of a future amount.
Both are related by
Fv = Pv(1 + r)^n
where Fv is the future amount
Pv is the present value
r = rate
n = time
As such,
18.5 = 15 (1 + r)^2
1.2333 = (1 + r)^2
1 + r = 1.11
r = 0.11
the annual percent on returns is 11%
Answer:
The closest answer is option A,$7649
Explanation:
The net present value of the investment is the present value of annual cost savings minus the initial cost of investment.
present of cash flow=cash flow/(1+r)^n
r is the discount rate of 12%
n is the year the cash flow relates to ,for instance year zero for the initial investment
NPV=-$54,000+$16,000/(1+12%)^1+$16,000/(1+12%)^2+$16,000/(1+12%)^3+$16,000/(1+12%)^4+($16,000+$7,000)/(1+12%)^5=$ 7,648.41
note that the project gives $7,000 in salvage value in year 5
I will stop what I am doing to go open another cash register so things will move by quicker and customers won't get irritated
Answer: $324,000
Explanation:
Cedar Corp. paid $432,000 for a year in advance. According to the Accrual principle in Accounting, expenses are to be recorded only when incurred.
The rent will therefore have to be apportioned to the months that it has paid for in the current period.
Rent for year = $432,000
Rent for month = 432,000/12 = $36,000
April - December = 9 months
Rent for the year = 9 * 36,000
= $324,000
Note; <em>Question is about Rent expense which is how much Cedar Corp has paid not about how much they have received. </em>
Answer:
Cost of land = $519,000
Explanation:
<em>According to International Accounting Standards (IAS) 16, property plants and equipments, the cost of land includes all of the cost necessary to bring and make it ready for the intended use. </em>
<em>These costs include purchase cost, fees and commission associated with the purchase transaction. </em>
<em>Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.</em>
Note that all the costs incurred by FVI as reported all fall into the above definition of cost of land.
Therefore the cost of the land would be
=460,000 + 26,000 + 1,600+ 5,400 + 26,000
= $519,000
