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Pavel [41]
3 years ago
15

This morning, DJ’s invested $238,000 to help fund a company expansion project planned for three years from now. How much additio

nal money will the firm have three years from now if it can earn 4 percent rather than 3.5 percent on its savings?
Business
1 answer:
rusak2 [61]3 years ago
5 0

Answer:

$3,842.78

Explanation:

We must determine the future value of the money invested and then calculate the difference between both return rates. We can use the future value formula: FV = present value x (1 + return rate)ⁿ

3.5% ⇒ FV = $238,000 x (1 + 3.5%)³ = $238,000 x 1.035³ = $263,874.85

4% ⇒ FV = $238,000 x (1 + 4%)³ = $238,000 x 1.04³ = $267,717.63

difference = $267,717.63 - 263,874.85 = $3,842.78

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AleksandrR [38]
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2 years ago
Consider a $10,000 machine that will reduce pretax operating costs by $3,000 per year over a 5-year period. Assume no changes in
ki77a [65]

Answer:

A) $83

Explanation:

First, find aftertax OCF per year

aftertax OCF = (Operating benefit - depreciation)*(1-tax) +depreciation

Depreciation per year = 10,000/5 = 2,000

Tax = 34%

aftertax OCF per year = (3,000 - 2,000)*(1-0.34) + 2,000

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Next, find the PV of the aftertax OCF per year. It is an annuity;

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N = 5

I/Y = 10%

FV = 0

then CPT PV = 10,083.493

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8 0
3 years ago
List all the source documents in accounting
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Answer:

Canceled checks.

Invoices.

Cash register receipts.

Computer-generated receipts.

Credit memo for a customer refund.

Employee time cards.

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Explanation:

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7 0
3 years ago
Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would le
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