$131,000
WTP-price paid
I hope this helps you
:)
Answer:
The answer is Debit (Dr) Office supplies account $800
Credit (Cr) Cash Account $800
Explanation:
We credit the giver in this case Cash and debit the receiver (Office supplies expense account) with $800 to satisfy the double entry rule.
Answer:
The lum-sum must equal $5,369,009.59
Explanation:
Giving the following information:
First option:
Annual payment= $420,000
Number of periods= 25 years
Interest rate= 6%
<u>First, we need to calculate the future value of the first option using the following formula:</u>
<u></u>
<u>FV= {A*[(1+i)^n-1]}/i</u>
A= annual deposit
FV= {420,000*[(1.06^25) - 1]} / 0.06
FV= $23,043,095.04
<u>Now, to determine the lump-sum to receive today, we need to determine the present worth of the annuity:</u>
PV= FV / (1 + i)^n
PV= 23,043,095.04 / (1.06^25)
PV= $5,369,009.59
I believe this is the correct answer - She should expect to work very hard, putting in long hours about six days a <span>week.
She will need to work as much as she can if she wants to get this franchise going. She doesn't have a lot of experience (except for loving ice-cream), so she will need to study hard and work even harder if she wants to make it and make her company successful.</span>