1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Answer correctly or it will be deleted whos my favorite player
xenn [34]

Answer:

Player for what?

Explanation:

If it's football then... Lamar Jackson???

5 0
3 years ago
Read 2 more answers
Bryce Co. sales are $801,000, variable costs are $465,100, and operating income is $287,000. What is the contribution margin rat
KATRIN_1 [288]

Answer:

Contribution margin ratio= 0.42

Explanation:

Giving the following information:

Bryce Co. sales are $801,000

Variable costs are $465,100

Operating income is $287,000.

<u>To calculate the contribution margin ratio, we need to use the following formula:</u>

contribution margin ratio= (sales - variable cost) / sales

contribution margin ratio= (801,000 - 465,100) / 801,000

contribution margin ratio= 0.42

8 0
3 years ago
Grainger Company is a major automotive parts manufacturer operating in six countries. It has no restrictions on stock sales and
alisha [4.7K]

Answer:

The correct word for the blank space is: public.

Explanation:

A public corporation has sold stock through an<em> Initial Public Offering </em>(IPO) to the public and that stock is currently traded on a <em>public stock exchange</em> or the <em>Over-The-Counter</em> (OTC) market. The ability to sell public shares is very important to these businesses as it provides them with a source of capital for investment.

5 0
3 years ago
Gilberto is giving a speech in his art history course. he has carefully prepared his presentation and plans to deliver it from a
Leya [2.2K]
The way Gilberto prepared hes speech for his art history course (presentation and plans from a brief set of note cards) states that he is using extemporaneous delivery. This type of speech delivery <span>is usually given from brief notes or a speaking outline and it is an effective </span>way to hold the interest of and motivate an audience. 
6 0
3 years ago
On January 1, a company issues bonds dated January 1 with a par value of $730,000. The bonds mature in 3 years. The contract rat
quester [9]

Answer:

a. Debit interest expense $38,500; credit discount on bonds payable $2,000; credit cash $36,500

Explanation:

As the bonds are sold less than the face vaue then it is said the bonds are issued on discount, we need to calculate the discount on the bond

Discount on the bond = Face value of bond - Issuance value of bond = $730,000 - $718,000 = $12,000

The discount will be amortized over the life of the bond

The first interest and its amortization is as follow

Cash Payment = Face value x Coupon rate x Semiannual fraction = $730,000 x 10% x 6/12 = $36,500

Amortization of discount on bond = Discount on Bond / Total Numbers of periods = $12,000 / ( 3 years x 2 payment period per year ) = $2,000 per eperiod

The cash will be credited by $36,500

The bond liability will be credited by $2,000

Hence the interest exepense will be debited by $38,500 ( $36,500 + $2,000 )

6 0
3 years ago
Other questions:
  • George works in the accounting department at the Green Goddess Lawn Services, where it is his job to record all transactions int
    5·1 answer
  • Writing ads and setting prices are examples of which of the following?
    5·1 answer
  • The receipt of dividends and interest from abroad as a result of ownership of foreign assets by a country's residents is recorde
    13·1 answer
  • The​ ____________ concept is based on the​ development, design, and implementation of marketing​ programs, processes, and activi
    10·1 answer
  • During 2017, its first year of operations as a delivery service, Concord Corporation entered into the following transactions:
    13·1 answer
  • A new aluminum part production facility opened for business, selling products for $9,000 each. The rent on the facility building
    6·1 answer
  • Suppose that lichtenstein and luxembourg currently have identical production possibilities frontiers but that lichtenstein devot
    15·1 answer
  • Explain the limitations of statistics
    7·1 answer
  • Which action would a bank most likely take when deciding whether a person
    11·1 answer
  • ritzer argues that the operating procedures perfected (but not originated) by have been duplicated in countless arenas from amus
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!