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3 years ago

9

Al-qaeda linked units have shifted much of their focus from the middle east to africa. this is the case especially of the recent

conflict in

1 answer:

Brilliant_brown [7]3 years ago

8 0

Somalia or Mali are the types currently dealing with Al-qaeda linked insurgencies

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Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of income a year for 20 years,

Nataly_w [17]

Answer:

The annuity will cost him $963,212.95.-

Explanation:

Giving the following information:

Cash flow= $75,000

Interest rate= 0.0525

n= 20

First, we need to calculate the final value. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

A= annual cash flow

FV= {75,000*[(1.0525^20) - 1]/0.0525} + {[75,000*(1.0525^20)] - 75,000}

FV= 2,546,491.88 + 133,690.82= $2,680,182.70

Now, the present value:

PV= FV/(1+i)^n

PV= 2,680,182.70/(1.0525^20)

PV= $963,212.95

4 0

3 years ago

The Bull Company, a lawn mower manufacturer, is considering the introduction of a new model. The initial investment required is

TEA [102]

Answer:

Option d. $30,028,394.34

Explanation:

We can calculate certainty equivalent NPV by just a simple formula

Certainly equivalent NPV = Certain cashflow/(1+r)^n

Certain cashflows =Net cashflows x Certainty equivalent factor

r = risk free rate

At first, we need to find certain cash flows

Certain cash flow

Year1: $15,000,000 x 0.90 = $13,500,000

Year2: $13,000,000 x 0.80 = $10,400,000

Year 3: $11,000,000 x 0.60 = $6,600,000

Year 4: $9,000,000 x 0.35 =$3,150,000.

Certainly Equivalent NPV = [$13,500,000 / (1+0.06)^1] + [$10,400,000 / (1+0.06)^2] + [$6,600,000 / (1+0.06)^3] + [$3,150,000 / (1+0.06)^4]

Certainly Equivalent NPV = $12,735,849.06 + $9,255,962.98 + $5,541,487.27 + $2,495,095.04 = $30,028,394.34

5 0

2 years ago

To raise $5 million, southeastern corporation decides to issue bonds. if southeastern does not register the bonds with the sec a

Masja [62]

<span>The answer is private placement. It is the transaction of securities to a moderately small number of select investors as a way of raising capital. Investors involved in private placements are frequently large banks, mutual funds, insurance companies and pension funds. A private placement is not the same from a public issue, in which securities are made accessible for sale on the open market to any type of investor. Since a private placement is obtainable to a few selected individuals, the placement does not have to be recorded with the Securities and Exchange Commission (SEC). In many circumstances, thorough financial information is not disclosed and the investment is not sold by prospectus.</span>

3 0

3 years ago

Rokhanna, Inc. issued $1,000 par value bonds with an 8% coupon. The bonds have 18 years to maturity. Market interest rates are 5

Zielflug [23.3K]

Answer:

Bond Price = $1294.65063 rounded off to $1294.65

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. Assuming the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 1000 * 0.08 = 80

Total periods (n) = 18

r or YTM = 0.054 or 5.4%

The formula to calculate the price of the bonds today is attached.

Bond Price = 80 * [( 1 - (1+0.054)^-18) / 0.054] + 1000 / (1+0.054)^18

Bond Price = $1294.65063 rounded off to $1294.65

8 0

2 years ago

Chiller Company has credit sales of $5.60 million for year 2013. Chiller estimates that 1.32% of the credit sales will not be co

dsp73

Answer:

$59,045.80

Explanation:

The following information was missing:

Accounts Receivable total $1,565,170

Assuming the company uses the percent of accounts receivable method, what is the amount that Chiller will enter as the Bad Debt Expense in the December 31 adjusting journal entry?

total uncollectible debt = $1,565,170 x 4% = $62,606.80

since the account balance of the allowance for doubtful accounts is $3,561 (credit), the adjusting entry should be:

December 31, 2013, bad debt expense

Dr Bad debt expense (= $62,606.80 - $3,561) 59,045.80

Cr Allowance for doubtful accounts 59,045.80

7 0

3 years ago