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Travka [436]
3 years ago
10

Income from a certain operation is expected to be zero in years one through five, after which it will be $50,000 per year foreve

r. The capitalized cost of the income at 10% per year is nearest to:a. $252,300b. $282,250c. $310,450d. $500,000
Business
1 answer:
xz_007 [3.2K]3 years ago
7 0

Answer:

c. $310,450

Explanation:

The computation of the capitalized cost of the income is shown below:

= Present value of the annual cash flow × discount factor for 10 years at 5%

where,

Present value of the annual cash flow  = $50,000 ÷ 0.10 = $500,000

And, the discount factor is

= 1 ÷ (1 + rate) ^ years

= 1 ÷ (1.10)^5

= 0.6209

So, the capitalized cost of the income is

= $500,000 × 0.6209

= $310,450

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The lower-level budgets, cash flow projections, budgeted financial statements, and financial plans of an organisation are all included in the master budget, which is a thorough financial planning document. It is often created by a company's budget committee under the direction of the budget director.

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1 year ago
Universal Containers (UC) wants its closed Won opportunities to be synced to a Data warehouse in near real time. UC has implemen
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3 years ago
Real Estate tax, a tax based on the value of the land and the buildings owned by its taxpayers, is a good example of _____. A. I
sesenic [268]
C is the answer property tax
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3 years ago
Which asset made belgium a good place to establish the first industrialized textile manufacturer.
Vedmedyk [2.9K]
All of them it was a really hard time
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2 years ago
Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, I
lawyer [7]

Answer:

The new rate of return is 15.4%

Explanation:

The revised estimate on the rate of return on

the stock would be:

• Before

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• 7.6% + [5%*1] + [7%*.4]

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