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oksano4ka [1.4K]
3 years ago
6

3) Drew receives an inheritance that pays him $54,000 every three months for the next two years. Which of the following is close

st to the present value (PV) of this inheritance if the interest rate is 8.9% (EAR)?
A) $314,366
B) $471,549
C) $392,957
D) $432,000
Business
1 answer:
Snezhnost [94]3 years ago
6 0

Answer:

the correct answer is C

Explanation:

First calculate the APR with quarterly compounding, which equals 8.62% then using a periodic interest rate of 8.62/4%, calculate the present value (PV) of an annuity of $54,000 for eight periods

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Which statement about stakeholders is BEST?
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2. Stakeholders can potentially impact project development.

Explanation:

Stakeholders -

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4 0
3 years ago
During the month of June, Betty Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 P
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Answer:

Betty Incorporated

Journal Entries:

June 3:

DR Inventory $7,100

CR Accounts Payable (North Inc.) $7,100

To record the purchase of goods on account with terms 2/10, n/30.

June 5:

DR Accounts Payable (North Inc.) $2,600

CR Inventory $2,600

To record the return of goods on account.

June 6:

DR Inventory $2,500

CR Accounts Payable (South Corp.) $2,500

To record the purchase of goods on account with terms 2/10, n/30.

June 11:

DR Accounts Payable (North Inc.) $4,500

CR Cash Account $4,410

CR Cash Discount $90

To record the payment of balance owed to North Inc.

June 22:

DR Accounts Payable (South Corp.) $2,500

CR Cash Account $2,500

To record the payment of balance owed to South Corp.

Explanation:

The trade terms 2/10, n/30 mean that both North Inc. and South Corp. offered 2% cash discounts on amount paid by Betty Incorporated if it could settle its bills within 10 days.  The net allowed credit days are 30 days, after which Betty Incorporated could be charged interest for late payment.  It did not utilize the discount offered by South Corp. as it paid its bills after 16 days instead of within 10 days as stated in the trade terms.

7 0
3 years ago
Mara is a management consultant for a soda manufacturer that wants to expand into health drinks such as green tea and after-work
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Answer:

B. "Carefully consider the entry choices over time before making a decision."

Explanation:

Since Mara company specializes in manufacturing sodas, venturing into health drinks is risky and therefore would need a lot of planning, thorough analysis of the target market . Looking into whether there's sufficient demand for it and forecasting future trends with regards to health drinks is also important . Mara should therefore, test venture into this by testing the market and considering entry choices over time before making a decision.

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3 years ago
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