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Deffense [45]
3 years ago
8

Your grandparents would like to establish a trust fund that will pay you and your heirs $215,000 per year forever with the first

payment one year from today. If the trust fund earns an annual return of 4.2 percent, how much must your grandparents deposit today?
Business
1 answer:
Tju [1.3M]3 years ago
7 0

Answer:

They should invest $5,119,047.619 today.

Explanation:

The trust fund will pay a fixed amount forever thus it is a perpetuity. The value of perpetuity or Price of perpetuity is the amount that the perpetuity is worth in today's terms based on the cash flows it will generate in future.

The formula for the value or price of perpetuity is,

P0 or V = Cash Flow / r

Thus,

P0 or V = 215000 / 0.04   =  $5,119,047.619

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Raw Materials Inventory, beginning to balance $36,000
lesya692 [45]

Answer:

1. Journal Entry                        Debit        Credit

  Raw materials inventory      $73,400

   ($72,000 + $1,400)

          Accounts payable                          $73,400

   (Being raw materials purchase on credit)

2. Journal Entry                        Debit        Credit

  Work in process                      $64,300

   ($64,000 + $300)

        Raw materials inventory                    $64,300

                   <u>Raw Material Inventory Account</u>

Beginning balance    $36,000  |  Work in process $64,300

Purchase                    $73,400  |                              <u>            </u>

                                                   | Ending balance    <u>$45,100</u>

                                                   |  ($36,000 + $73,400 - $64,300)

3 0
3 years ago
The Assembly Department started the month with 83,000 units in its beginning work in process inventory. An additional 334,000 un
Zolol [24]

Answer:

383,000

Explanation:

Calculation to determine How many units were transferred to the next processing department during the month

Work in process, beginning 83,000

Add Units started into production during the month 334,000

Less Work in process, ending (34,000)

Units completed and transferred out during the month 383,000

(+83,000+334,000-34,000)

Therefore How many units were transferred to the next processing department during the month is 383,000

5 0
3 years ago
A lender uses a credit report to _____.
MrRissso [65]
I am pretty sure it's to decide if the applicant is creditworthy. ( Makes most sense. Did research too.)  :)
7 0
3 years ago
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Over the course of 40 years, Sal grew his company to six package shipping stores. with his retirement approaching and the increa
Pavel [41]

Answer:

<em>C. defensive strategy </em>

Explanation:

<em><u>Defensive strategy</u></em><em> </em><em> is been represented by the effort of Sal's reduction</em>.

Basically in defensive strategy, the consumers and the customers are been hold-back by the companies and organisations. In this when competition increases the companies try to pull back their old customers from their competitors company.

In the scenario which is been represented in the question the Sal's company indulge's in the action that is known as defensive strategy.

7 0
3 years ago
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klasskru [66]

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What is CRM and why is it important?

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Learn more about customer relationship management (CRM) /brainly.com/question/21299183

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7 0
2 years ago
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