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andriy [413]
4 years ago
9

An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $6

00 at the end of Year 6. If other investments of equal risk earn 12% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent.
Business
1 answer:
7nadin3 [17]4 years ago
8 0

Answer:

Year     Cashflow       [email protected]%       PV

                 $                                      $

1               150             0.8929       134

2              150             0.7972        120

3              150             0.7118          107

4              250            0.6355        159

5              300            0.5674        170                                                                                   6              600            0.5066       <u>304  </u>                                                                                                                                                                                                                                        

                                                     <u> 994</u>

Explanation:

In this case, we will discount the cashflow for each year at 12% per annum.  The discount factor can be obtained by using the formula (1 + r)-n. Then, we will multiply the cashflows by the discount factors in order to obtain the present values. All the present values will be added up.

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Answer:

10.412%

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The computation of the average cost of equity of the firm is shown below;

The Cost of equity as per CAPM is

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= 4.2 + 1.34 × (12.8 - 4.2)

= 15.724%

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7 0
3 years ago
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Answer:

Revenue

Unaccrued

Accrued

Deferred revenue

Explanation:

An amount which is received ,recognized and recorded as a revenue is termed as a Revenue.

An amount which is recognized as a revenue but not yet received and recorded is an unaccrued revenue ,it is an asset as well.

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7 0
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ROK Corporation has provided you with the following information for 2010: (hint - set up T accounts for all accounts and post th
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The factory overhead applied to the product is $5,400

Let understand that Factory Overhead means the <em>total cost</em> that is used in operating all the production segment (i.e depreciation of equipment, salary, wages, electricity) of a manufacturing company and its does not include the costs of direct labor & materials.

  • It is given that:

- <em>Factory Labor Incurred  equals $8,000 (including $6,000 direct and $2,000 indirect</em>

<em>- Manufacturing Overhead is applied to the product based on 90% of direct labor dollars</em>

<em />

  • Therefore, the Factory overhead applied will equals Direct factory labor incurred * 90% Overhead applied

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See similar Factory overhead here

<em>brainly.com/question/14330080</em>

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Learn more about Financing here brainly.com/question/15031166

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