Answer:
Value of scholarship today = $30,484.90
Explanation:
The value of the Scholarship is the present value of the annual payment of $9,000 discounted as the annual interest rate of 7% per annum.
This can be computed using the formula below
Present Value = Annual cash flow × (1- (1+r)^(-n)/r)
n -number of years, r-interest rate
rate r- 7%, n=4, Annual cash flow = 9,000
Present Value = 9,000× (1-1.07^-4)/0.07
= 9,000× 3.3872
= $30,484.90
Value of scholarship today = $30,484.90
Answer:
19.7%
Explanation:
The modified internal rate of return is a capital budgeting method used to determine the profitability of an investment. The MIRR assumes that cash inflows are reinvested at the firm's cost of capital and outflows are financed at the firm's financing cost.
MIRR = (Future value of a firm's cash inflow / present value of the firm's cash outflow)^ (1/n) - 1
Future value = payment x[ (1 + interest rate)^n - 1 ] / interest rate
$193,000 x (1.17^5) - 1 / 0.17 = 1353779.24
1353779.24 / $551,000) ^0.2 - 1 = 19.7%
Answer:
I think it would be the first one to be honest
Answer:
Dr unearned rent $25,019
Cr rental income $25,019
Explanation:
The cash received on June 1 20Y2 for 12 months rent would have been debited cash while the unearned rent account would have been debited with the same amount.
As of December 31, 20Y2, the rent of 7-month(June-December) have now been earned and adjusted as follows:
earned rent for 7 months=$42,890*7/12=$25,019
The earned rental income would be debited to unearned rent and credit to rental income
Answer:
$65
Explanation:
The calculation of the break even price for this position is given elow:
Break even price is
= Strike price - premium
= $70 - $5
= $65
The stock goes increase i.e. upwards to $65 so the amount that lose is only $5 but it declines than the stock would be $0
Therefore, the break even price of this position is $65
So, by using the above formula we can get the break even price and the same is to be considered
