Answer:
$62,267.91
Explanation:
first we must calculate the interest rate = 10% + 6% + (10% x 6%) = 16.6%
now we can use the present value formula:
present value = future value / (1 + rate)ⁿ
present values for:
- cash flow year 0 = $17,100
- cash flow year 3 = $46,500/1.166³ = $29,333.06
- cash flow year 4 = $12,300/1.166⁴ = $6,654.43
- cash flow year 7 = $26,900/1.166⁷ = $9,180.42
total present value = $62,267.91
Answer:
D. Recession
Explanation:
Aggregate output in an economy declines during a recession. This is because economic activities are declining. When such occurs GDP declines. This is different from stagflation in the sense that during a recession, only real GDP declines. However, in a stagflation, the fall in GDP also results to the increase in inflation. During recessions, economic activities are low so is price level.
Answer:
$101 million income tax expense
Explanation:
The income tax of HD can be computed by beginning with income tax payable less the increase in deferred tax asset in the year and finally by deducting the portion of current deferred tax asset that cannot be realized as shown below:
Current income tax payable $90 million
increase in deferred tax asset($170-$130) ($40 million)
unrealized deferred tax asset ($170*30%) $51 million
income tax expense in income statement $101 million
The HD income tax expense in income statement in 2021 is $101 million as computed due to the fact that prior payment in tax ha been paid in the year
Answer:
What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year)
and monthly payments (12 per year)?
Compare the annual cash outflows of the two payments.
- total semiannual payments per year = $2,820.62 x 2 = $5,641.24
- total monthly payments per year = $531.13 x 12 = $6,373.56
Why does the monthly payment plan have less total cash outflow each year?
- The monthly payment has a higher total cash outflow ($6,373.56 higher than $5,641.24), it is not lower. Since the compounding period is shorter, more interest is charged.
What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year)?
- $2,820.62 x 12 payments = $33,847.44 ($25,000 principal and $8,847.44 interests)
Explanation:
cabinet cost $25,000
interest rate 10%
we can use the present value of an annuity formula to determine the monthly payment:
present value = $25,000
PV annuity factor (5%, 12 periods) = 8.86325
payment = PV / annuity factor = $25,000 / 8.8633 = $2,820.62
present value = $25,000
PV annuity factor (0.8333%, 60 periods) = 47.06973
payment = PV / annuity factor = $25,000 / 47.06973 = $531.13
Answer:
$25 per batch
Explanation:
Combined final sales value:
= Sales value of refined sugar + Sales value of industrial fiber
= $65 + $65
= $130
Financial advantage:
= Combined final sales value - Further Processing - sugar beets costs - Cost to Crush
= $130 - ($17 + $21) - $54 - $13
= $130 - $38 - $54 - $13
= $25 per batch
Therefore, the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar is $25.