Answer:
(a) $50,980.35
(b) $5,129.90
(c) $2,400
(d) $50,980.35
(e) $5,129.90
(f) $2,400
Explanation:
A constant payment for a specified period is called annuity. The future value of the annuity can be calculated using a required rate of return.
Formula for Future value of annuity is
F = P * ([1 + I]^N - 1 )/I
P =Payment amount
I = interest rate
N = Number of periods
(a) $1,000 per year for 16 years at 14%
F = $1,000 x ([1 + 14%]^16 - 1 )/14%
F = $50,980.35
(b) $500 per year for 8 years at 7%
F = $500 x ([1 + 7%]^8 - 1 )/7%
F = $5,129.90
(c) $600 per year for 4 years at 0%.
F = $600 x 4
F = $2,400
(d) $1,000 per year for 16 years at 14%
F = $1,000 x ([1 + 14%]^16 - 1 )/14%
F = $50,980.35
(e) $500 per year for 8 years at 7%
F = $500 x ([1 + 7%]^8 - 1 )/7%
F = $5,129.90
(f) $600 per year for 4 years at 0%.
F = $600 x 4
F = $2,400
Answer:
A.- DECREASE
B.- DECREASE
C.- INCREASE
D.- INCREASE
E.- INCREASE
Explanation:
a. The discount rate increases
DECREASE the discoutn factors will be higher therefore, the present values lower.
b. The cash flows are in the form of a deferred annuity, and the total to $100,000. You learn that the annuity lasts for 10 years rather than 5 years, hence that each payment is for $10,000 rather than for $20,000
DECREASE Because the cashflow is generate on a longer period there is more exposure to discount rates.
c. The discount rate decreases
INCREASE The discount factor are lower. This situation is the opposite as (a)
d. The riskiness of the investment's cash flows <u>decreases</u>
INCREASE a lower risk derivates in lower cost of capital thus, lower iscount rates. This increase the present value of the cashflow.
e. The total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years.
INCREASE as most of the future cash flows are at the beginning they have less exposure to time value of money.
Answer:
E : Task complexity and requirement of different perspectives must be used as criteria when assigning work to teams over individuals and vice versa
Explanation:
Answer:
a. No journal entry required.
Explanation:
a. No journal entry required.
b. No journal entry required.
c. DR - Rent Expense - $20
CR - Cash - $20
d. Cash (DR) 7,955
DR - Collection expense - $45
CR - Notes Receivable - $8,000
e. DR - Accounts Receivable-E. Shaw - $ 805
CR - Cash - $805
f. DR - Misc Expenses - $25
CR - Cash - $25
g. No journal entry required.
i. No journal entry required.
<u>Explanation:</u>
First, remember that the difference between <em>normative and positive economic analysis</em> is that;
Normative analysis take a somewhat neutral view by stating how the world should be. While
The Positive analysis states the facts. That is, it describes the world as it is.
<u>
Thus, a </u><u>Normative analysis</u><u> of the consequence of minimum wage would be the following statements:</u>
c. In some cities such as San Francisco and New York, it would be impossible for low−skilled workers to live comfortably in the city without minimum wage laws.
d. The gains to winners of a minimum wage law should be valued more highly than the losses to losers because the latter primarily comprises businesses.
<u>And a </u><u>Positive analysis</u><u> of the consequence of minimum wage would be the following statements:</u>
a. The minimum wage law causes unemployment.
b. A minimum wage law benefits some groups and hurts others.
