Answer:
Annual depreciation= $10,160 a year
Explanation:
Giving the following information:
Ivanhoe Company purchased a new machine on October 1, 2017, for $77,980. The company estimated that the machine has a salvage value of $6,860. The machine is expected to be used for 72,900 working hours during its 7-year life.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (77,980 - 6,860)/7= $10,160 a year
Answer:
Explanation:
Present value is calculated as the discounted sum of either a fixed amount or a series of payments in the future, at a given interest rates.
For example, at an interest of 5%, $100 in 10 years will be valued at $100 / 1.05^10 = $61.39 today
Answer: Top management
Explanation: There are several stages of management in a company to most important of them is the top management. The decisions by top managers affect the organisation as a whole and the success and failures of the organisation highly depends on their actions. Examples of top management are directors and vice president .
In the above case, Geraldo is the vice president of the company and also he is responsible for determining the directions of operations of the company thus we can consider him in the top management.
Answer:
FV= $75,437.02
Explanation:
Giving the following information:
Number of cash flows= 5
Cash flow= $10,000
Total number of periods= 10 years
Interest rate= 6% compounded annually
<u>First, we need to calculate the future value of the 5 cash flows in 5 years using the following formula:</u>
<u></u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {10,000*[(1.06^5) - 1]} / 0.06
FV= $56,370.93
<u>Now, the value at the end of 10 years:</u>
FV= PV*(1+i)^n
FV= 56,370.93*(1.06^5)
FV= $75,437.02
