Answer:
- <u><em>d) increases as the interest rate decreases.</em></u>
Explanation:
<em>Present value</em> is the value today; future value is the value some time in the future.
The mere notion of the value of money in time should tell you that, further away in time (towards the future) a sum of money is found, the lower its value today.
Then, you should be able to rule out some propositions that are contrary to that intuition:
- a<em>) decreases as the time period decreases</em> ↔ clearly false: the present value increases as the time period decreases
- <em>e) is directly related to the time period</em>. ↔ clearly false: the present value is inversely related to the time period.
How is the present value related to the future value?
They are directly related: the higher a lump sum in the future the higher the value of it in the present; more money is more money always. More money in the future has more value in the present; less money in the future has less value in the present. Thus, the option <em>b). is inversely related to the future value</em> is false
How is the present value related to the interest rate?. Which one is true?
- c) is directly related to the interest rate, or
- d) increases as the interest rate decreases
The present value is calculated discounted the future value at the interest rate. The interest rate is in the denominator of the equation to pass from future value to present value. Thus, they are inversely related (c is false); the less the interest rate, the higher the present value of a future amount (confirm d is true).
Therefore, the correct answer is that <em>the present of a lump sum future amount: </em><em><u>d) increases as the interest rate decreases.</u></em>
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Answer:
Fixed assets and equipment
Explanation:
Depreciation is the accountant's estimate of the cost of fixed assets and equipment used in the production process matched with the benefits produced from owning it.
It is the decrease in the value of assets and the method used to reallocate the cost of asset over its useful life span.
Assets can be categorized as :
1. Current
2. Fixed
3. Tangible
4. Intangible assets.
In accounting, there are several standard methods of computing depreciation expense:
1. Fixed percentage
2. Straight line
3. Declining balance methods.
Answer:
Contracting Officer Representative
Explanation:
- An agent of a contracting officer is a person appointed in compliance with the subdivision of DFARS .and approved by the contracting agency in law to automate repetitive technological or essential functions.
- A security officer is a man who shares information to interact and coordinate their events between two organizations.
by these process COR work.
Answer:
see below
Explanation:
A firm may either opt to shutdown or declare bankruptcy if its making losses. A shutdown will involve ceasing operations and disposing of assets to pay creditors. Declaring bankruptcy shields the business from debt obligations or seizing of assets by its creditors.
Many businesses opt to declare bankruptcy because shutting down is costly. Except for properties, other assets are likely to be liquidated at costs below their book value. With the burden of debts shelved for some time, a business has a chance of bouncing back to profitability. A loss-making firm whose price is above the average variable cost should continue operating.
Answer:
$22,500
Explanation:
The computation of the total cost saving is shown below:
= Cost saving × number of zippers needed
= $0.25 × 90,000 zippers
= $22,500
We simply multiply the cost saving with the needed zipper so that accurate amount can come
The cost saving would be
= Outside supplier price - transfer price
= $3.50 - $3.25
= $0.25
All other information which is given is not relevant. Hence, ignored it
