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3 years ago

What is the present value of 10 equal payments of $16,500 to be made at the end of each year for the next 10 years?

Business

1 answer:

fiasKO [112]3 years ago

6 0

Answer:

$101,385

Explanation:

The question is incomplete. The complete question can be found here- https://www.chegg.com/homework-help/questions-and-answers/present-value-10-equal-payments-16-500-made-end-year-next-10-years-annual-interest-rate-10-q41891258

Here is the complete question - What is the present value of 10 equal payments of $16,500 to be made at the end of each year for the next 10 years? The annual interest rate is 10%. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.

The present value of cash flow can be found by discounting the present value of the cash flow by 10%

This can be found using a financial calculator:

Cash flow for year 1 - 10 = $16,500

I =10%

Present value = $101,385

I hope my answer helps you

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Strickland Company owes $200,000 plus $18,000 of accrued interest to Moran State Bank. The debt is a 10-year, 10% note. During 2

nika2105 [10]

Answer:

A. Strickland Company (DEBTOR)

Dr Note Payable200,000

Dr Interest Payable18,000

Dr Accumulated Depreciation-Machine221,000

Cr Machine390,000

Cr Gain on Disposition of Machine 11,000

Cr Gain on Debt Restructuring 38,000

Moran State Bank (CREDITOR)

Dr Machine180,000

Dr Allowance for Doubtful Accounts38,000

Cr Note Receivable200,000

Cr Interest Receivable18,000

B. Based on the information given they should report both the gain or loss on the disposition of machine as well as on restructuring of debt as ordinary gain in its 2017 income statement

C. Strickland Company (DEBTOR)

Dr Note Payable200,000

Dr Interest Payable18,000

Cr Common Stock150,000

Cr Additional Paid-in Capital 30,000

Cr Gain on Debt Restructuring38,000

Moran State Bank (CREDITOR )

Dr Investment 180,000

Dr Allowance for Doubtful Accounts38,000

Cr Note Receivable200,000

Cr Interest Receivable18,000

Explanation:

(a)Preparation of the journal entries .

Strickland Company (DEBTOR)

Dr Note Payable200,000

Dr Interest Payable18,000

Dr Accumulated Depreciation-Machine221,000

Cr Machine390,000

Cr Gain on Disposition of Machine 11,000

[$180,000 – ($390,000 – $221,000) ]

Cr Gain on Debt Restructuring 38,000

[($200,000 + $18,000) – $180,000]

Moran State Bank (CREDITOR)

Dr Machine180,000

Dr Allowance for Doubtful Accounts38,000

Cr Note Receivable200,000

Cr Interest Receivable18,000

(b) Based on the information given they should report both the gain or loss on the disposition of machine as well as on restructuring of debt as ordinary gain in its 2017 income statement

(c)Preparation of the entries to record the transaction for both parties.

Strickland Company (DEBTOR)

Dr Note Payable200,000

Dr Interest Payable18,000

Cr Common Stock150,000

Cr Additional Paid-in Capital 30,000

Cr Gain on Debt Restructuring38,000

[($200,000 + $18,000) – $180,000]

Moran State Bank (CREDITOR )

Dr Investment 180,000

Dr Allowance for Doubtful Accounts38,000

[($200,000 + $18,000) – $180,000]

Cr Note Receivable200,000

Cr Interest Receivable18,000

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3 years ago

Michael's, Inc., just paid $2.20 to its shareholders as the annual dividend. Simultaneously, the company announced that future d

Whitepunk [10]

Answer:

The maximum price that should be paid for one share of the company today is $54.895

Explanation:

The price of a stock that pays a dividend that grows at a constant rate forever can be calculated using the constant growth model of Dividend discount model (DDM) approach. The DDM values a stock based on the present value of the expected future dividends. The formula for price today under this model is,

P0 = D1 / r - g

Where,

D1 is the expected dividend for the next period or D0 * (1+g)

r is the required rate of return

g is the growth rate in dividends

SO, the maximum that should be paid for this stock today is:

P0 = 2.2 * (1 + 0.048) / (0.09 - 0.048)

P0 = $54.895 rounded off to $54.90

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3 years ago

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rjkz [21]

Answer:

3. How does the action I am proposing to take make me feel about myself?

Explanation:

According to Norman Vincent Peale, the following questions should be asked by Jake as he proceeds to make an ethical decision: How does the action I am proposing to take make me feel about myself?

According to Kenneth Blanchard and Norman Vincent Peale, authors of The Power of Ethical Management, there are three questions you should ask yourself whenever you are faced with an ethical dilemma:

1. Is it legal? Will I be violating civil law or company policy? Will I be violating the student code of conduct?

2. Is it balanced? Is it fair to all parties concerned both in the short-term as well as the longterm? Does it promote win-win relationships?

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3 years ago

How does the business cycle affect consumers? check all that apply.

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Answer:

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2 years ago

Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Dat

Wittaler [7]

Answer:

Estimated manufacturing overhead rate= $3 per machine hour

Explanation:

Giving the following information:

Machine Hours Per Unit:

Rings= 6 (1,000 units)

Dings= 11 (2,040 units)

All of the machine hours take place in the Fabrication Department, which has an estimated total factory overhead of $85,200.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

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3 years ago