Answer:
$918.89
Explanation:
For computing the current price of the bond we need to apply the present value formula i.e to be shown in the attachment
Given that,
Future value = $1,000
Rate of interest = 8% ÷ 2 = 4%
NPER = 5 years × 2 = 10 years
PMT = $1,000 × 6% ÷ 2 = $30
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the current price of the bond is $918.89
The answer is D.} the inflation rate was 12 percent.
Answer: $45,862.29
Explanation:
This question relates to the Present value of an Annuity.
The original price would be the present value of the payments and since the payments are constant over a period, they are an annuity
Interest/ r = 2.25/12 months = 0.1875%
Periods/ n = 4 * 12 months = 48 months
= Payment * (( 1 - ( 1 + r) ^ n)/ r)
= 1,000 * (( 1 - ( 1 + 0.1875%)^48) / 0.1875%)
= $45,862.29
Answer:
the breakeven cash inflow for the project is $131474
Explanation:
given data
cost of capital = 10 percent
initial investment = $1,000,000
useful life = 15 year
to find out
the breakeven cash inflow for the project
solution
first we consider here annual cash inflows that is = x
now break even point is the one at which the net present value of the project = 0
so we can say that here
Present value of cash inflows - Present value of cash outflows = 0 .................1
here we know Present value of cash inflows = x × PVAF ( 10%,15 years)
Present value of cash inflows = x × 7.6060
put value in equation 1 we get
x × 7.6060 - $1,000,000 = 0
solve and we get x
x = 
x = $131474
so the breakeven cash inflow for the project is $131474
Answer:
An asset exchange transaction which increases the cost of the purchased merchandise.
The firm gives the transportation company money (which is an asset) and since the transportation costs are included in the cost of the merchandise, the firm is paying a fraction of the cost of the asset.
When you are calculating the purchase cost of goods you must include the price of the goods, transportation costs, and any other associated expense like insurance costs and import fees, etc.
Transportation costs are only included in the COGS when the firm acquires the goods, but when the firm sells the goods, any distribution cost is not included under production costs, instead they are included under the sales costs.