Answer:
The present value of the future earnings is $51,981,214.36
Explanation:
The present value of the earning can be calculated by discounting the earnings for the next five years along with calculating the terminal value of earnings at the end of the five years when the growth rate in earnings becomes constant and discounting it back to the present value.
Taking the value in millions,
Present Value = 1 * (1+0.3) / (1+0.08) + 1 * (1+0.3)^2 / (1+0.08)^2 +
1 * (1+0.3)^3 / (1+0.08)^3 + 1 * (1+0.3)^4 / (1+0.08)^4 + 1 * (1+0.3)^5 / (1+0.08)^5 + [( 1 * (1+0.3)^5 * (1+0.02) / (0.08 - 0.02)) / (1+0.08)^5]
Present value = $51.98121436 million or $51,981,214.36
Based on my knowledge of inflation and its redistribution of purchasing power, I would advise my older parents to embark on Plan B by <u>purchasing a business</u>.
<h3>How does inflation redistribute purchasing power?</h3>
Inflation redistributes purchasing power by giving less value to lenders and savers than to borrowers and investors.
The purchasing power of a fixed money plan decreases. On the other hand, the purchasing power from variable investment changes with inflation.
A business would also increase its value over time more than a fixed investment.
Thus, based on my knowledge of inflation and its redistribution of purchasing power, I would advise my older parents to embark on Plan B by <u>purchasing a business</u>.
Learn more about inflation and purchasing power at brainly.com/question/16467725
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Answer: the answer is A
Explanation:
A: the decrease in interest paid over time
Because an amortization table show you how your payment breaks down to principal paid and interest paid, and will also keep track of how much principal you have left to pay
Answer:
See Explanation Below
Explanation:
a. When should Ski West recognize revenue from the sale of its season passes?
Revenue from the sales of Ski West season should be recognised when it passes each month.
b. Prepare the appropriate journal entries that Ski West would record on November 6 and December 31
November 6, 2021
Cash: ------------------------- $450
Unearned Revenue: --------------------------------- $450
December 31, 2021
Unearned Revenue:--------- $90
Revenue: ---------------------------------------------------$90
c. What will be included in the Ski West 2021 income statement and balance sheet related to the sale of the season pass to Jake Lawson?
2021 Income Revenue
Revenue: ------------------------ $90
Unearned Revenue: --------------------------------$360.
Unearned Revenue is calculated by $450 - $90 = $360
Traditional store-based retailers are placing more emphasis on other channels and evolving into online-based business as well as store-based. As times change within society, businesses have to adapt and change so that they grow with their customer base. Although they can still focus on their store-based business, they usually have a split group of people who also prefer to shop within other channels.