Answer:
yes Anne should choose the bank / 2,2130.96
Explanation:
as it is not said we will assue that taking the bank option there will be four payments at the end of the year, so let´s first remember te formula for the future value calculation:
where FV is future value, PV is the present value, i is the periodic interest rate and n is the number of periods. So applying to this particular problem we have:
so the first answer is yes Anne should choose the bank.
the second answer is calculated just doing 8,130.96-6,000 so it will be 2,2130.96
Answer:
- Net Present value = -$11,001
- Downtime reduction should be worth $11,001
Explanation:
Net Present value = Present value of cash inflows - Cost of machine
As the annual cash flows are constant, they will be treated as annuities:
Present value of cash flows = 30,000 * Present value interest factor of annuity, 8 years, 8%
= 30,000 * 5.7466
= $172,398
Net present value = 172,398 - 183,399
= -$11,001
<em>Reduction in downtime should be worth at least $11,001 so that it would enable the project to breakeven at least. </em>
Answer:
Explanation:
Income Statement
$
Revenue 32,800
Expenses <u> (14,600) </u>
Profit <u> 18,200 </u>
Statement of changes in stockholders’ equity
Retained Earnings :
Profit for the year 18,200
Cash dividend paid <u>(2,900 )</u>
Retained earnings as at 31/12/18 <u> 15,300 </u>
Balance sheet
Current Asset :
Cash Balance ( 32,800-2900) 29,900
Stockholders' Equity :
Retained earnings 15,300
Ownership of a key natural resource is one of the many reasons a firm can have a natural monopoly. Patents cause government created monopolies not...
Answer: a separate schedule
Explanation:
Preferred stock, are referred to as the shares of the stock of a company whereby the dividends are paid out to the preference shareholders before the common stock dividends are issued.
It should be noted that the preferred stock which is issued in exchange for the land will be reported in the statement of cash flows in a separate schedule.