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cluponka [151]
3 years ago
9

Paradise, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $625 2 875 3 1,150 4 1,250

Required: (a) If the discount rate is 11 percent, what is the future value of these cash flows in year 4? (b) What is the future value at a discount rate of 18 percent? (c) What is the future value at discount rate of 30 percent?
Business
1 answer:
MissTica3 years ago
5 0

Answer:

(a) If the discount rate is 11 percent, what is the future value of these cash flows in year 4?

To solve this problem, we must find the FV of each cash flow and add them.

To find the FV of a lump sum, we use:

FV = PV(1 + r)^t

[email protected]% = $625(1.11)^3 + $875(1.11)^2+ $1,150(1.11) + $1,250 = $4459

(b) What is the future value at a discount rate of 18 percent?

FV = PV(1 + r)^t

[email protected]% = $625(1.18)^3+ $875(1.18)^2+ $1,150(1.18) + $1,250 = $4852

(c) What is the future value at discount rate of 30 percent?

FV = PV(1 + r)^t

[email protected]% = $625(1.30)^3+ $875(1.30)^2+ $1,150(1.30) + $1,250 = $5597

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drek231 [11]

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7 0
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If bread is produced by using a constant returns to scale production function, then if the: A) number of workers is doubled, twi
nekit [7.7K]

Answer: Option (C) is correct.

Explanation:

Constant returns to scale production function: When there is an increase in inputs (i.e capital and labor) as a result output increases by the same proportion.

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Suppose the capital and labor increases by 10% then as a result output also increases by 10%.

5 0
3 years ago
During the​ year, Sheldon Company had net credit sales of $ 47 comma 000. At the end of the​ year, before adjusting​ entries, th
Maru [420]

Answer:

The balance of allowance for doubtful accounts is $ 1,880

Explanation:

Computation of balance in Allowance for Bad Debts

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Estimated bad debts as a % of sales                     4 %

Balance of Allowance for Doubtful accounts      $ 1,880

The balance is based on a % to credit sales basis. The bad debts expense for the year considers the balance in the allowance for doubtful accounts and the accounting entry is an adjustment amount.

4 0
3 years ago
Which of these methods will remove a custom tab stop?
Andrew [12]
I think it’s B. Triple- click the tab stop
4 0
3 years ago
Rugged Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If
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Answer:

$412,500

Explanation:

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Total Cash receipts = Cash receipts from sales on account from March + Cash receipts from sales on account from April

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