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hjlf
4 years ago
11

a set of cash flows begins at 20000 the first year with a decrease of $2000 each year until n = 10. With an interest rate of 7%,

what is the equivalent uniorm annual cash flow

Business
1 answer:
Bezzdna [24]4 years ago
7 0

Answer:

Explanation:

Present value (PV) is sum of all cash flows discounted at 7%.

(a) Annual decrease = $2,000

PV is computed as follows.

Year Cash Flow ($)     PV Factor at 7%     Discounted Cash Flow ($)

               (A)                     (B)                     (A) x (B)

1 20,000 0.9346 18,692

2 18,000 0.8734 15,722

3 16,000 0.8163 13,061

4 14,000 0.7629 10,681

5 12,000 0.7130 8,556

6 10,000 0.6663 6,663

7 8,000 0.6227 4,982

8 6,000 0.5820 3,492

9 4,000 0.5439 2,176

10 2,000 0.5083 1,017

PV ($) = 85,041

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Dettol and Lifebuoy product comparison is taken

Explanation:

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3. Product Information- Dettol contains Chloroxylenol whereas Lifebuoy contains germ protection soap bars.

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Though both exhibit almost the same characters , it totally depends upon the person which they prefer over the two products.

5 0
4 years ago
The entry to accrue a contingent liability reduces equity but not income. is made if it is more likely than not that the liabili
Lorico [155]

Answer:

is made if it is more likely than not that the liability has been incurred.

Explanation:

When contingent liability is recorded it is recorded by debiting income statement and creating a liability in balance sheet, also it is not accounted for until the amount of liability is pretty certain as without being clear about its occurrence and the amount involved the liability cannot be recorded.

There is no such loss account, there exists only income statement.

Therefore, with the above we can conclude that contingent liability is recorded only if:

is made if it is more likely than not that the liability has been incurred.

3 0
4 years ago
In general, individuals and nations should specialize in producing those goods for which they have a(n):
lesya [120]

Answer:

Comparative advantage.

Explanation:

Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.

The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.

In 1817, David Ricardo who is an english political economist talked about the law of comparative advantage in his book “On the Principles of Political Economy and Taxation." Also, the principle of comparative advantage states that, nations (countries) can become better off than their contemporaries through the process of specializing in what they know how to produce or do best.

This simply means that, any country applying the principle of comparative advantage, would enjoy an increase in output and consequently, a boost in their Gross Domestic Products (GDP).

In general, individuals and nations should specialize in producing those goods for which they have a comparative advantage.

8 0
3 years ago
Dr. Hamrick is hired by the ABC Company to hear cases involving grievances of employees of the company. Sometimes evidence is pr
Maksim231197 [3]

Answer:

Arbitration

Explanation:

Arbitration is a type of dispute resolution method. In arbitration, two or more conflicting parties engage an independent third party who listens and considers the evidence presented by all parties before making a decision. The arbitration process is conducted by a single arbitrator or a tribunal of three arbitrators.

An arbitrator is required to be experienced in the arbitration process. His or her role is similar to that of a judge. An arbitrator may have legal experience or be knowledgeable in the matters causing the dispute. The decisions of an arbitrator are enforceable in a court of law.  The arbitration process is much faster and cheaper compared to the court process.

7 0
3 years ago
Amanda is a full-time exempt employee in Sparks, Nevada, who earns $89,200 annually. She is married with 1 deduction and is paid
Ivanshal [37]

Answer:

$3045

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89,200 divided by 26 (weeks she would get paid)=3430

-235

-50

-75

-25 =385

3430-385=3045

5 0
4 years ago
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