You asked two of your friends to give you their opinions of a business proposal you have written. Now you have received two sepa
1 answer:
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Answer:
a-1 Present value = 6,177.39
a2- Present Value =6,227.79
a3- Choose the payment stream with the highest present value = a2
b1- Present Value=3,353.98
b2-Present Value=2,805.28
b3-Choose the payment stream with the highest present value = b1
Explanation:
a-1 describes an ordinary annuity whose present value is calculated as follows:
where PMT=$800; i= 5%, n= 10
= 6,177.39
a2- = 6,227.79
a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.
b1- = 3,353.98
b2- =2,805.28
b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.
Answer:
Cost of merchandise purchase for May = $500,000
Explanation:
Provided information,
Sales for the month = $900,000
opening inventory = $50,000
Closing inventory = $55,000
Gross margin on sales = 45% of sales
Cost of goods sold = 100 - gross margin = 100 - 45% = 55%
Thus, cost of goods sold = $900,000 55% = $495,000
Therefore, purchase for the month = Cost of goods sold + Closing - Opening
= $495,000 + $55,000 - $50,000 = $500,000