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antoniya [11.8K]
3 years ago
15

Time Value of Money: Basics Using the equations and tables in Appendix 25A this chapter, determine the answers to each of the fo

llowing independent situations. Round answers to the nearest whole number. (a) The future value in two years of $3,000 deposited today in a savings account with interest compounded annually at 6 percent.
Business
1 answer:
kow [346]3 years ago
6 0

Answer:

Present value (PV) = $3,000

Interest rate (r) = 6% = 0.06

Number of years (n) = 2 years

Future value (FV) = ?

FV = PV(1 + r)n

FV = $3,000(1 + 0.06)2

FV = $3,000(1.06)2

FV= $3,000 x 1.1236

FV = $3.370.80                                                                                                                                                                                                                                                                                    

Explanation:

In this case, there is need to compound the present value for 2 years at 6% interest per annum. The formula to be applied is the formula for future value of a lump sum (single investment).

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Edwards Electronics recently reported $11,250 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreci
olasank [31]

Answer: $4032.85

Explanation:

The following can be derived based on the information in the question:

Sales = $11,250

Less: operating cost = $5,500

Less: depreciation = $1,250

Operating income = $4500

Operating income = $4500

Less: Interest charges = $218.75

Taxable income = $4281.25

Taxable income = $4281.25

Less: Taxes = $1498.4

Net income = $2782.85

Net cash flow = Net Income + Depreciation

= $2782.85 + $1250

= $4032.85

N.B:

Interest charges= 6.25% × $3500

= 0.0625 × $3500

= $218.75

Taxes = 35% × $4281.25

= 0.35 × $4281.25

= $1498.4

3 0
3 years ago
Several employees are facing the possibility of being laid off from work. By concluding that they should look for new jobs
VLD [36.1K]

By concluding that they should look for new jobs  happens, they are solving problems.

C. solving problems.

<u>Explanation:</u>

Several employees face this problem of getting fired or laid off from work due to many reasons like drop in business profits, bankruptcy of the company, too much work force than required, not so competent work force, etc.

Before any situation like this occurs or when it is evident that something like this might occur the employees should start solving problems.

Therefore, whenever there is a possibility of being laid off occurs they first and foremost solve their problems.

7 0
3 years ago
when hilton hotels hired ross klein and amar lalvani from starwood hotels, klein and lalvani took many electronic documents with
Debora [2.8K]

when hilton hotels hired ross klein and amar lalvani from starwood hotels, klein and lalvani took many electronic documents with them from starwood. what they did was simply good business and presented no ethical problems.

This problem is a False Statement.

What is ethical problems?

An ethical problem, also known as a moral problem or ethical paradox, arises when a person must choose between two possibilities, none of which are wholly ethically acceptable.

Therefore,

This problem is a False Statement.

To learn more about ethical problems from the given statement:

brainly.com/question/17426643

5 0
2 years ago
Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality $ 78,000 Quality data
Makovka662 [10]

Answer:

$102,000

Explanation:

Calculation to determine What would be the total appraisal cost appearing on the quality cost report

Using this formula

Total appraisal cost=Test and inspection of in-process goods + Final product testing and inspection

Let plug in the formula

Total appraisal cost=$ 24,000+$78,000

Total appraisal cost=$102,000

Therefore What would be the total appraisal cost appearing on the quality cost report is $102,000

8 0
3 years ago
A certain organization trying to decide where to locate their future factory is considering three locations. They are taking int
Llana [10]

Answer:

SITE A

Explanation:

Given :

FACTOR___ WEIGHT _SITE A_ SITE B _SITE C

Labor Cost __ 0.25 _____92 ____82____ 84

Curr Stability _ 0.35 _____75 ___ 85____ 88

Prox Market __ 0.30 ____ 80 ____50 ___ 60

Taxes _______ 0.10 _____69 ___ 88 ___ 91

SITE A:

(0.25 * 92) + (0.35*75) + (0.30*80) + (0.10*69) = 80.15

SITE B :

(0.25 * 82) + (0.35*85) + (0.30*50) + (0.10*88) = 74.05

SITE C :

(0.25 * 84) + (0.35*88) + (0.30*60) + (0.10*91) = 78.90

Using the weighed factor model;

The based site for locating the facility is SITE A as it has the highest weighted value

4 0
2 years ago
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