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lord [1]
3 years ago
13

Joseph has just accepted a job as a stockbroker. He estimates his gross pay each year for the next three years is $35,000 in yea

r 1, $21,000 in year 2, and $32,000 in year 3. The present value of these cash flows, if they are discounted at 4%, is closest to ______.
A. $79,452.30
B. $80,294.50
C. $81,517.10
D. $88,000
Business
1 answer:
Kamila [148]3 years ago
5 0

Answer:

The present value of the cash flows is closest to $81517.10. Thus, option C is the correct answer.

Explanation:

The present value of the cash flows is the value of future cash flows in today's terms. The cash flows are discounted back to today's value using an appropriate discount rate. The formula to calculate the present value of such cash flows is,

PV = CF1 / (1+r)  +  CF2 / (1+r)^2  +  CF3 / (1+r)^3

Thus, the PV = 35000 / (1+0.04)  +  21000 / (1+0.04)^2  +  32000 * (1+0.04)^3

PV = $81517.4101

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If collection of an other receivable is expected beyond one year, it is classified as a
spin [16.1K]

Answer:

(D) non-current asset and reported under Investments

Explanation:

The total assets comprise of current assets, fixed assets, and the intangible assets

The current assets include cash, stock, account receivable, etc

which is up to one year

Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.

And, the intangible assets include patents, copyrights, goodwill, etc.  

The fixed assets and the intangible assets have life for more than one year like 5 to 6 years or even more.  

In the given question, the collection is made for other receivable which is to be reported under investments and considered as a non-current asset

7 0
3 years ago
Sheryol is helping Stasia specify who the supervisors are in her business, who the managers are who oversee the supervisors, who
zysi [14]

Answer:

Organizational chart

Explanation:

An organizational chart is a diagram that visually conveys a company's internal structure by detailing the roles, responsibilities, and relationship between individuals within an entity. Organizational charts either broadly depict an enterprise company-wide or drill down to a specific department or unit.

This is the best device Steryol can use to describe or make the process of understanding the structure of an organisation.

8 0
4 years ago
Say you are considering two loans. Loan F has a nominal interest rate of 5. 66%, compounded monthly. Loan G has a rate of 6. 02%
AnnZ [28]

When the effects and impacts of compounding over time are taken into account, the effective annual interest rate is the true return on a savings account or any other interest-paying investment.

Option C is the correct answer:  Loan F's effective rate will be 0.302 percentage points lower than Loan G's.

<h3>Given</h3>

The interest rate on loan F is 5.66 percent per month, compounded.

The interest rate on loan G is 6.02 percent, compounded semi-annually.

<h3>Computations of effective rates</h3>

\text{Effective rate for loan F}:\\\\r = 1+\frac{0.0566}{12}^{12} - 1 \\\\\n=12\\\\\\text{or}\\\\\r=0.0580916\\\\\\\text{Effective rate for loan G}\\\\r = 1+\frac{0.0602}{12}^{2} - 1 \\\\\\n = 2\\\text{or}\\\\\r=0.0611106\\\\\\\text{ The difference between the loans for G and F}:\\\\=0.061106-0.058091\\\\=0.00302\\\\\text{or}\\\\=0.00302 \text{ x } 100\\\\=0.302 \text{percent}

Therefore, option c is the correct answer.

For more information about the related question, refer below

brainly.com/question/25857212

5 0
3 years ago
Sheridan Corp. paid a dividend of $2.30 yesterday. The company's dividend is expected to grow at a steady rate of 5 percent for
qaws [65]

Answer:

$24.15

Explanation:

The formula for determining is the present value of a cash flow in perpetuity provided below:

share price=last dividend*(1+terminal dividend growth rate)/(required rate of return-terminal dividend growth rate)

last dividend=$2.30

terminal dividend growth rate=5%

required rate of return=15%

share price=$2.30*(1+5%)/(15%-5%)

share price=$2.415 /10%

share price=$24.15

6 0
3 years ago
When the government imposes taxes on buyers or sellers of a good, society A. loses some of the benefits of market efficiency. B.
maksim [4K]

Answer:

A) loses some of the benefits of market efficiency.

Explanation:

Taxes always result in deadweight losses. Deadweight loss refers to allocative inefficiencies resulting from an alteration in the equilibrium quantities and economic surplus.

Taxes always increase the price of goods or services, and that increase reduces the equilibrium quantity, therefore resulting in lower economic surplus (lower consumer surplus and lower supplier surplus). The price of a good or service is higher, decreasing the quantity demanded, but the net amount received by the supplier is lower, decreasing the quantity supplied.

4 0
4 years ago
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