Answer:
This question is incomplete however as per our research the question should be
<em>You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get an extra $70,000 every seven years, starting seven years from now.
</em>
<em>
What is the present value of this incentive if you plan to work for the company for 42 years and the interest rate is 6.0%(EAR)?
</em>
<em>The </em><em>detail answer</em><em> with calculation is given below.</em>
Explanation:
Present value is the discounted value of the future value. Time Value of money theory states that the value of the money increases as time passes. This current value is known as the present value.
The present value of this incentive if you plan to work for the company for 42 years is 126,964.34 $. (W-1)
(W-1)
Year- time Discount Factor* Net present value Calculation
**
7 0.6651 46,554.00
14 0.4423 30,961.07
21 0.2942 20,590.88
28 0.1956 13,694.11
35 0.1301 9,107.37
42 0.0865 6,056.92
126,964.34
*DF=(1+i)^t
**PV= DF*70000
where i=6% i.e interest rate
Answer and Explanation:
The journal entries are shown below:
1) Journal entry
On Jan 2
No journal entry is required
On Jan 2
Cash $35100
Accumulated depreciation-Machine A $24400
To Gain on sale of machine A 4500
To Machine A 55000
(Being the sale of machine A is recorded)
2) Journal entry
On Jan 2
No journal entry is required
On Jan 2
Accumulated depreciation-Machine B 7860
Loss on disposal of machine B 7940
To Machine B 15800
(Being disposal of machine B is recorded)
Answer:
BANK
DR BALANCE 50 000
CR ACCOUNTS PAYABLE 15 000
ACCOUNTS PAYABLE
DR BANK 15 000
CR CREDITORS CONTROL 15 000
Since no figures are given, we use $15 000 as an example to show how much a creditor was owed and has been paid.
Since the creditor has been paid in full, the accounts payable is now at $0 at the end of the month.
Answer:
A. Evaluate strategic opportunities.
Explanation:
In strategic retail planning the steps begin with definition of business mission, conduct situation analysis, identify strategic opportunities, and the next stage is to evaluate the strategic opportunities.
In the evaluation stage we look at how feasible a strategic opportunity is. A choice is made between different alternatives to come up with the best choice for the business.
