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3 years ago

G why is the future value always more than the present value?

1 answer:

3 0

The future value is always more than the present value because the value of the dollar can be higher in the next day. plus it can be adding the interest in the future value.

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"The owner of A. C. Flora Ford Dealership wanted to know why consumers chose his company to purchase a car. He was fairly sure t

tensa zangetsu [6.8K]

Answer:

Close-ended questions

Explanation:

Flora should simply ask people if they choose her dealership for service, reputation, or location, which would be a close-ended question.

She could also use some probing questions in order to further research the reasons why customer prefer her dealership.

5 0

4 years ago

Starlite Industries will need $2.2 million 4.5 years from now to replace some equipment. Currently, the firm has some extra cash

kotegsom [21]

Answer:

d. $1,876,306.49

Explanation:

As for the provided information,

Total funds needed at end of 4.5 years = $2.2 million

For this current savings are to be invested on a compound interest, where the rate of interest = 3.6%

Compounding period = Annually.

Therefore, future value factor of $1 after 4.5 years @ 3.6% = 1.1726997

The value of $2.2 million as on date = $\frac{2.2\ million}{1.1726997}$

= $1,876,306.49

Therefore, the correct answer is

Option d.

6 0

3 years ago

A machine can be purchased for $250,000 and used for five years, yielding the following net incomes. In projecting net incomes,

Furkat [3]

Answer:

2.53 years

Explanation:

For computing the payback period, first we have to find out the depreciation expense which is shown below:

= (Purchase value of machine - residual value) ÷ (useful life)

= ($250,000 - $0) ÷ (5 years)

= ($250,000) ÷ (5 years)

= $50,000

Now the cash flows would be

Year Net income Depreciation Net cash flow

Year 0 ($250,000)

Year 1 $17,000 $50,000 $67,000

Year 2 $42,000 $50,000 $92,000

Year 3 $119,000 $50,000 $169,000

Year 4 $63,500 $50,000 $113,500

Year 5 $168,000 $50,000 $218,000

As we add the first 2 year net cash flows than it would be $159,000

Now we deduct the $159,000 from the $2500,000 , so the amount would be $91,000 as if we added the third year cash inflow so the total amount exceed to the initial investment. Therefore, we subtract that, and the next year's cash inflow will be $169,000.

So, the payback period would be

= 2 years + $91,000 ÷ $169,000

= 2.53 years

7 0

3 years ago

The following data for the current year ended December 31, 2016, was extracted from the accounting records of Xender Co.: Cost o

Wewaii [24]

Answer:

income statement are given below

Explanation:

given data

Cost of merchandise sold = $937,200

Operating expenses = 307,500

Sales = 1,230,250

solution

income statement are as

Income Statement for the year ended December 31, 2016

Sales $1,230,250

Cost of Merchandise Sold $937,200

Gross Profit $293050

Operating expenses $307,500

net income -$14450

here Gross Profit is Sales - Cost of Merchandise Sold

Gross Profit = $1,230,250 - $937,200 = $293050

and

net income = Gross Profit - Operating expenses

net income = $293050 - $307,500 = -$14450

6 0

3 years ago

The following information relates to a product produced by Marigold Company: Direct materials $20 Direct labor 10 Variable overh

Tomtit [17]

Answer:

The incremental cost per unit associated with the special order is $60.

Explanation:

Direct materials 20

Direct labor 10

Variable overhead 20

Variable selling and administrative 10

Total 60

Therefore, The incremental cost per unit associated with the special order is $60.

6 0

4 years ago