Answer:
Explanation:
The present value formula is:
Assuming annual compounded interest, r = 9% = 0.09 and n = 68 years.
Substituting and computing:
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To find the value of the inventory to the nearest cent:
Estimated costs are: $18,750
Storage costs: 12%
Interest costs: 12%
Transportation costs: 5%
Let's add the costs up: 12% + 12% + 5% = 29%
We are solving for the value of inventory so in this case we will make that X.
X = estimated costs/interest amounts
X = $18,750/29%
X = $18,750/0.29
X = $64,655.17
The value of the inventory is $64,655.17
To check your work you can take $64,655.17 and multiply it by 29%
= $18,750
Answer:
Siebens will report $933.33 of Interest Income relating to this note on its 2014 Income Statement
Explanation:
Assuming that the year end for the Siebens is on 31 December, there will be an adjusting entry passed on this day under the accrual principle to caclulate and record the interest income on notes Receivable that relates to this year. The interest income for this year can be calculated as:
Interest Income = 20000 * 0.08 * 7/12 = $933.33
The journal entry to record this will be
31 December 2014 Interest receivable $933.33
Interest Income $933.33
Answer:
rd+premium = 10.5%
using CAPM = 10.3%
Explanation:
Under bond-yield+ risk-premium approach
This method simply propose to add the bond yield with the estmated risk premium:
0.065 + 0.04 risk premium = 0.105
r_f = 0.055
β = 0.8
(r_m-r_f) = 0.06
0.055 + 0.8(0.06) = 0.103 cost of capital using CAPM
Answer:
Rheingold supply will have a genuine defense against such claim.
Explanation:
The seniority system within Rheingold supply doesn't talk on either the employee is a male or a female rather it gives preference to the amount of year with which an employee has stayed within the organization during promotion.
Therefore Rheingold supply has a genuine defense against such claim, so the files an claim of illegal discrimination by Jane will be falsified.