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Sloan [31]
3 years ago
14

Jeff has the opportunity to receive​ lump-sum payments either now or in the future. Which of the following opportunities is the​

best, given that the interest rate is ​4% per​ year?
a. one that pays $ 900 now
b. one that pays $ 1080 in two years
c. one that pays $ 1350 in five years
d. one that pays $ 1620 in ten years
Business
1 answer:
Brrunno [24]3 years ago
7 0

Answer:

c. one that pays $ 1350 in five years

Explanation:

we have to calculate the present value of each option:

  • option a, $900 (that is the present value)
  • option b, $1,080 in 2 years. PV = $1,080 / (1 + 4%)² = $998.52
  • option c, $1,350 in 5 years. PV = $1,350 / (1 + 4%)⁵ = $1,109.60
  • option d, $1,620 in 10 years. PV = $1,620 / (1 + 4%)¹⁰ = $1,094.41

Option c yields the highest present value = $1,109.60

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For each item listed below, indicate the allocation terminology for the item. Use the following terms for your answer:
nexus9112 [7]

For each item listed the allocation terminology for the items are as follows:

Amortization: Copyrights, Patents, Trademarks and Annual licensing fees.

Depreciation:  Buildings, Equipment and Land Improvements.

Depletion: None.

None of these: Land, Research and Development Costs and Franchises.

<u>Explanation:</u>

Throughout accounting, amortization applies to multiple-period distribution of revenues. The concept is used for two isolated processes: loan amortization and asset amortization. Depreciation is the reduction in asset value and the process used to redeploy or "write down" a tangible asset's expense (like equipment) over its expected life period.

Depletion is a term of accounting and taxation generally used in coal, forestry, petroleum, or other related industries. Depletion is identical to depreciation in that it is an accounting and tax tracking system for cost recovery.

8 0
4 years ago
Kim placed an order with her broker for 800 shares of each of three IPOs being offered this week. Each of the IPOs has an offer
Ainat [17]

Answer:

B. $3,251

Explanation:

Stock shares × Allocated price = Shares closing price

A 700 ×$ 29.15 =$20,405

B 430 ×33.86=$14,560

C 340× 36.43 =$12,386

Total $47,351

Stock shares × IPO price= Shares IPO price

A 700 ×$30=$21,000

B 430×$30= $12,900

C 340×$30=$10,200

Total $44,100

Total Profits $47,351-$44,100

=$3,251

Therefore Kim's total profit on these three stocks at the end of the first day of trading will be $3,251

8 0
3 years ago
List three strategies for seeing that your guests do not leave your home or residence while impaired
Sati [7]
<span>Have one person be the bartender, and keep track of how much people drink, and then limit the amount of alcohol people consume. Serve no alcohol or have only a limited amount available, while having a wide variety of nonalcoholic beverages available. Declare in advance that this will be an alcohol free event and that you will provide beverages that are nonalcoholic, and would like guests to respect that and not bring alcohol.</span>
5 0
3 years ago
Timothy is the human resources manager for a local manufacturing facility. recently, the ceo of the manufacturing company decide
Ksivusya [100]

The answer to this question is that Timothy can use a text message. A text message or texting  is a form of communication where in a person sends a message to another person thru the use of a mobile phone. A text message is also known as short message service that is sent using a phone network.

7 0
4 years ago
QUESTION 2 of 10: Three smoothie shops exist in your town with annual sales of $300,000; $344,000; and $412,000. What is the ave
Goshia [24]

Answer:

352,000

Explanation:

add up all the numbers, then you divide by 3

6 0
3 years ago
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