Answer:
Instructions are below.
Explanation:
Giving the following information:
Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly.
To calculate the present value, first, we need to determine the final value.
i= 0.09/12= 0.0075
n= 30*12= 360
<u>Martha:</u>
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= montlhy payment
FV= {200*[(1.0075^360)-1]}/0.0075 + {[200*(1.0075^360)]-200}
FV= 366,148.70 + 2,746.12
FV= 368,894.82
Now, the present value:
PV= FV/ (1+i)^n
PV= 368,894.82/ 1.0075^360
PV= $25,042.80
<u>Stewart:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly payment
FV= {200*[(1.0075^360)-1]}/0.0075
FV= 366,148.70
PV= 366,148.70/1.0075^360
PV= $24,856.37
Martha has a higher present value because the interest gest compounded for one more time.
Answer:
$9,000
Explanation:
1.Finishing’s departmental rate based on MH
= Finishing’s costs/Finishing’s machine hours
= $90,000/2,000 = $45 per MH
2.Cost assigned to Finishing based on MH
= Finishing’s departmental rate based on MH * Finishing’s currently used machine hours
= $45 per MH * 200 MH = $9,000
Therefore If the company uses a departmental overhead rate based on machine hours, $9,000 overhead cost will be assigned to Finishing this month
Answer:
<u>a. High inflation rates</u>
Explanation:
Note that<em> a major role of a corporate finance manager </em>is to maximize the profits of a business by providing advice as to mergers as well as buying and selling financial products.
Therefore, according to reports David Jimenez in the early 1980s was faced with the problems of high inflation rates which meant a rise in the cost of production etc for companies or businesses under his care.
Answer:
Cash provided by operating activities $84,700
Explanation:
The computation of the amount of cash provided by operating activities is shown below:
Net income $85,100
Add: depreciation expense $1,400
Less: increase in account receivable -$2,700
Add: Increase in account payable $900
Cash provided by operating activities $84,700