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erastova [34]
3 years ago
9

Calculate the present value of the given stream of cash flows using the given discount rate. The present value you find is betwe

en $24,000 and $24,100. time cash flows discount rate 0 5% 1 $1,000 2 $1,500 3 $2,000 4 $2,500 5 $3,000 6 $3,500 7 $4,000 8 $4,500 9 $5,000 10 $5,500
Business
1 answer:
ss7ja [257]3 years ago
7 0

Answer:

$23,547.76

Explanation:

The present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator:

Cash flows each year:

1 = $1,000

2 = $1,500

3 = $2,000

4 = $2,500

5 = $3,000

6 = $3,500

7 = $4,000

8 = $4,500

9 = $5,000

10 = $5,500

I = 5%

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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​Midtown, Inc. had the following transactions in​ 2018, its first year of​ operations: bullet Issued​ 31,000 shares of common st
Anna007 [38]

Answer:

The stockholders' equity is $6,90,000.

Explanation:

<u>Calculating the Total stockholders' equity:</u>

Total stockholders equity = Beginning stock equity + Net income

Total stockholders equity = (31,000 * 20) + 70,000

Total stockholders equity = 6,20,000 + 70,000

Total stockholders equity = $6,90,000

3 0
3 years ago
Pet care salons, skin clinics, and day care centers are all examples of businesses operating in the?
Elodia [21]

Pet care salons, skin clinics, and day care centers are all examples of businesses operating in the <u>service industry</u>.

Service industry is an industry in the part of the economy that creates services rather than tangible objects. These service industry provides a service but does not produce anything.

The industries based on service are an important part of society for a variety of reasons, including- delivering essential services to the public. Pet care salons, skin clinics, and day care centers are all examples of businesses operating in the service industry. These services too generate income.

Hence, service industry play an important role in society.

To learn more about Service industry here:

brainly.com/question/18310687

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6 0
2 years ago
A project will produce an operating cash flow of $56,200 a year for 5 years. The initial fixed asset investment in the project w
Lelu [443]

Answer :

Net present value = -$18,375

Explanation :

As per the data given in the question,

Initial investment = $239,800

The project will generate operating cash flow pf $56,200 for 5 years

So present value of operating cash flow :

PMT = $56,200

N = 5 years

Rate = 15.2%

FV = $0

Now applying the formula

= -PV(RATE,NPER,PMT,FV,0)

The present value comes $187,502

Now

FV = $67,000

n = 5 years

Rate = 15.2%

PMT = $0

Now applying the formula

= -PV(RATE,NPER,PMT,FV,0)

The present value comes $33,023

Now the Net present value is

= ($33,023 + $187,502) - $238,900

= -$18,375

5 0
3 years ago
Contribution Income Statement and Cost-Volume-Profit Graph Picnic Time produces a picnic basket that is sold for $100 per unit.
Ira Lisetskai [31]

Answer:

Graph Picnic Time

Contribution Income Statement

For the Month of July

Sales                                               $400,000

Less variable costs:

Direct materials                              $100,000

Direct labor                                        60,000

Manufacturing overhead                  20,000

Selling and administrative                 16,000

Total variable costs                       $196,000

Contribution margin                     $204,000

Less fixed cost:

Manufacturing overhead $36,000

Selling and administrative 68,000

Total fixed costs                            $104,000

Profit                                              $100,000

Explanation:

a) Data and Calculations:

Selling price per picnic basket = $100

July Production and sales = 4,000 baskets

Variable Costs per Unit:

Manufacturing:

Direct materials              $25

Direct labor                        15  

Manufacturing overhead   5

Total                               $45

Selling and administrative 4

Total                               $49

Fixed Costs per Month

Manufacturing overhead $36,000

Selling and administrative  68,000

Total                                 $104,000

Contribution Income Statement

For the Month of July

Sales                                               $400,000 ($100 * 4,000)

Less variable costs:

Direct materials                              $100,000 ($24 * 4,000)

Direct labor                                        60,000 ($15 * 4,000)

Manufacturing overhead                  20,000 ($5 * 4,000)

Selling and administrative                 16,000($4 * 4,000)

Total variable costs                       $196,000

Contribution margin                     $204,000

Less fixed cost:

Manufacturing overhead $36,000

Selling and administrative 68,000

Total fixed costs                            $104,000

Profit                                              $100,000

8 0
3 years ago
Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricat
ivann1987 [24]

Answer:

Cost per equivalent unit Materials =  $ 2.82

Cost per equivalent unit Conversion =  $2.65

Explanation:

Richards Corporation

1) We first calculate the fifo equivalent units .

FIFO Equivalent units can be calculated by the following.

Particulars          Units        % of Completion             Equivalent Units

                                              Mat. Con. Costs       Materials C. Costs

Transferred out, 366,000        100       100             366,000   366,000

Ending inventory, 39,000         30         15              11700         5850

Total Weighted Equivalent Units                           377,700     371,850

Less

<u> Beginning Inventory: 98,000, 80%  20%             78,400        18000</u>

<u>FIFO Equivalent Units                                          299,300       353,850 </u>  

2) We calculate the total costs

                                                   Direct Materials  Conversion

Costs in beginning Work in Process -$55,200       $97,700

<u>Costs incurred in October -                 $844,050      $937,300. </u>

Total Cost                                           $ 899250         1035,000  

<u />

<u>3) In FIFO The cost per unit is  based only on the current costs and current period unit productions.</u>

Materials = $844050/299300= $2.82

Conversion = 937,300  / 353,850   = 2.6488= $2.65

8 0
3 years ago
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