Answer:
Explanation:
Dr Cash $6100000
Dr Discount on notes Payable $1933620
Cr Notes Payable $6100000
Cr Unearned Revenue $1933620
Discount on Notes Payable :
n=4
FV =6100000
I = 10%
PV= $6100000 - ($6100000 * PVIF)
= $6100000 - ($6100000 * 0.68301) = $4166382
Answer:
Accounting Cost
Accounting costs refers to the explicit costs which ar the actual costs related to the business venture. In this case that would be:
= Fuel costs + Seed costs + Equipment
= 25,000 + 40,000 + 25,000
= $90,000
Economic cost
This includes the accounting costs and then adds the implicit costs which are the opportunity costs of choosing the current business venture. In this case it is the $20,000 they could have been making working at other occupations.
= Accounting cost + Salary foregone
= 90,000 + 20,000
= $110,000
Economic costs will always be higher than Accounting costs because they include both the accounting costs and opportunity costs.
Answer:
Present Value= $918,787.32
Explanation:
Giving the following information:
You just inherited a trust that will pay you $100,000 per year in perpetuity.
The first payment will not occur for exactly four more years.
Interest rate= 8%
First, we need to determine the value of the perpetual annuity in 4 years. Then, we calculate the value today.
Present value in four years:
PV= Cf/i
Cf= cash flow
PV= 100,000/0.08= $1,250,000
Now, using the following formula, we calculate the value today.
PV= FV/(1+i)^n
PV= 1,250,000/1.08^4
PV= $918,787.32
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
If at a given time of the day, the state road 408 is higly congested, then it could be considered to possess the properties of a COMMON PROPERTY GOOD.
There are four types of economic goods, these are: public goods, private goods, common property goods and club good.
Common properties goods are those goods which are characterised by rival consumption and non exclusion of non payers. Rival consumption implies that consumption by a user imposes limitations on what others can consume, but a user can not stop another user from enjoying the good. Common property goods are equally owned by everyone and are not controlled by anyone in particular, thus these goods usually need government intervention.
