Answer:
X=97.24
Explanation:
PV = Present Value = X+2000 by the 16th years
PMT = Payments = $100
FV = Future Value = 2000 at the end of 16 years
n= number of years
Applying the equation of future value for annuity
FV = pmt* ((1+r)ⁿ - 1
)/r
Inputting the values;
2000=100*((1+r)¹⁶-1)/r
Solving for r, gives r = 2.9%
Therefore using the formula for PV for annuity;
PV=PMT*(1-(1/1+r)/r)
X=100*(1-(1/1.029)/0.029
X=100*((1-0.9718)/0.029)
X=100*(0.0282/0.029)
X=97.24
Answer:
formed a valid contract because Rachel's outward expressions showed the formation of a contract.
Explanation:
In contract, outward expressions refers to a situation when both parties has directly communicate the terms of a certain transaction and agreed upon it.
The contract is considered as 'valid' and considered to be a verbal agreement as soon as Rachel proposed a price and Julius agreed upon it.
One thing to remember, Even though this contract is considered as valid , it would be hard for Julius to held Rachel accountable to court since he has no way to proof that the verbal agreement has been made.
Answer: <u><em>Profitability index</em></u> is the financial method of analysis which will provide the information that the owner requests
This is an assessment technique inflicted to possible outlays. This splits the proposed capital flow by the planned capital outflow to find out the profitability of a project
<u><em>Therefore the correct option is (d).</em></u>
Answer:
$1,002,000
Explanation:
The costs incurred on the share for share exchange include the fair value per share ,issue costs,direct cost as well as contingent consideration(consideration based on the acquired business performance.
However,the costs eligible to be recorded as investment upon acquisition are the fair value per share and the contingent obligation as shown below:
Fair value (entire shares) $50*20,000=$1,000,000
fair value of potential obligation =$2000
total value of investment $1,002,000
The issue costs and direct should be expensed immediately.
Answer:
The right approach is Option a (supply of the good).
Explanation:
- Supply would increase substantially of some more production. Increasing the income of established businesses wouldn’t rise, as there has been increasing competitiveness.
- This similar value of the product is likely to decline due to further fulfillment as well as the same requirement. Marginal costs would never be compromised.
Anyone else alternatives possible does not apply to the situation throughout the question. That's the right thing above.
