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Crazy boy [7]
3 years ago
6

What is the present value of $2,025 per year, at a discount rate of 7 percent, if the first payment is received 6 years from now

and the last payment is received 23 years from now

Business
1 answer:
Marysya12 [62]3 years ago
7 0

Answer:

The correct answer is $20,369.65.

Explanation:

According to the scenario, the computation of the given data are as follows:

Payment (pmt) = $2,025

Discount rate ( rate) = 7%

Time period ( Nper) ( 6 -23 years) = 18 years

So, we can calculate the Present value by using financial calculator.

Attachment is attached below.

So, Present Value = $20,369.65

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Goods a company acquires to use in making products are called:
Afina-wow [57]

Answer:

b. Raw materials inventory.

Explanation:

There are basically three cycles to make a product ready to sale

1. Raw material

2. Work in process

3. Finished goods

The raw material is the part of the product. In the work in process, the products parts are in process to combine all the parts of the products. And, in the finished goods cycle, after processing the product, the product is finished and then the product is ready to sale.

The costs of goods sold and the conversion cost are the cost which are related to the product

6 0
3 years ago
Suppose you deposit $116 today, $135 in one year, and $885 in two years in an account that pays an annual rate of interest of 14
olga nikolaevna [1]

Answer:

The answer is $1357.85

Explanation:

Future value= Σ C(1+i)^n

FV = 116(1.141^3) + 135( 1.141^2) + 885(1.141) = $1357.85

7 0
3 years ago
The intent of corporate advertising is to make sure that all of a company's products are seen in a common, positive manner. True
evablogger [386]

Answer:

False since the intent of corporate advertising is usually done to ensure that the perception of the company's image is positive.

Explanation:

Corporate advertising is usually done to ensure that the perception of the company's image is positive. The products under the corporation is not a priority in this case, rather its is the company as a whole that needs to be viewed in good light.

This kind of advertising forms part of the public relations techniques used by the company or institution to improve its public image. There are so many companies with different brands under them that utilize this advertising technique to improve their standing in the public eye. It is a way of making the company itself to be a brand by advertising the company as a package.

These companies always want to prove that they care more about the public than they care for the products, in this way they create the perception that the company is primary and anything else is secondary.

Cooperate advertising is majorly used in companies whose business activities have a negative effect to the public. Cooperation that engage in mining activities or activities that affect the environment are likely to utilize this form of advertising.

6 0
3 years ago
A corporation issued $580000, 10%, 5-year bonds on January 1, 2020 for $626400, which reflects an effective-interest rate of 7%.
ioda

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

For Jan.1,2020 value = $626,400

Interest rate = 7%

So, we can calculate the amount of bond interest expense by using following formula:

Interest Expense = Carrying Value × Market Interest Rate

By putting the value of following

Interest expense = $626,400 × 7%

= $626,400 × 0.07

= $43,838

Hence, the amount of bond interest expense to be recognized on December 31, 2020, is $43,838.

7 0
3 years ago
An Uber driver faces costs for driving that include sunk costs like insurance that contribute to the average cost per mile of $.
crimeas [40]

Answer: sunk costs don't increase as driving increases.

Explanation: sunk costs are irrelevant costs because they have already occured in the past and cannot be avoided. Sunk costs thus do not differ between alternatives, and are unavoidable. The calculation for insurance and other sunk costs are likely not based on the amount of rides the Uber picks up, but rather calculated at a constant rate. So regardless of whether or not the rider pays more or less than the $.50 on the insurance, this will not have any effect on the insurance that is constant and has likely already been paid out.

4 0
3 years ago
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