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Dafna1 [17]
3 years ago
6

An arithmetic cash flow gradient series equals $600 in year 1, $700 in year 2, and amounts increasing by $100 per year through y

ear 9. At i = 9% per year, determine the present worth of the cash flow series in year 0.
The present worth of the cash flow series in year 0 is $
The question is properly stated and nothing is wrong with it!
Business
1 answer:
Scrat [10]3 years ago
7 0

Answer:

Present value ofthe annuity 6,163.14

Explanation:

We build the schedule of the annuity:

#  Beginning / Installment / Total / Interst / Ending

1                       600 600 1.09      654

2    654         700         1354 1.09     1,475.86

3   1475.86 800 2275.86 1.09    2,480.69

4  2480.69 900 3380.69 1.09    3,684.95

5  3684.95 1000 4684.95 1.09    5,106.6

6  5106.6 1100 6206.6 1.09    6,765.19

7  6765.19 1200 7965.19 1.09    8,682.06

8 8682.06 1300 9982.06 1.09   10,880.45

9 10880.45 1400 12280.45 1.09   13,385.69

Then we discount the future value at 9% to get the present value:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $13,385.6900

time  9.00

rate  0.09000

\frac{13385.69}{(1 + 0.09)^{9} } = PV  

PV   6,163.1435

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Answer:

$16,925,000

Explanation:

The company estimates that the warranty cost is $310 per units sold

The estimated warranty costs at the beginning of the year is $10,600,000

In the current year, the company sold 59,500 units

The company paid warranty claims of $12120000

Therefore, the amount of liability that should be reported at the end of the current year can be calculated as follows

= 10,600,000+(59,500×310)-$12,120,000

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= $29,045,000-$12,120,000

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Hence the amount of liability that should be reported on the balance sheet at the end of the current year is $16,925,000

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3 years ago
In the highest level of ethical and moral behavior, the individual is able to move beyond mere self-interest and duty and take t
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Answer:

postconventional stage

Explanation:

Kohlberg postconventional stage of moral development is when a person's sense of morality is based on abstract principles and values. It is the highest level of moral development where the individual has developed personal moral principles.

At this stage the individual looks beyond self and looks for ways to satisfy soceital needs as well.

7 0
3 years ago
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If the price of sugar (ps) falls by $5, how does this affect the equilibrium price?
Dennis_Churaev [7]

If the price of sugar falls it will affect the quantity supplied of the sugar. As it will lead to the decrease in the supplied quantity.

<h3>What causes a fall in the equilibrium price?</h3>

A decrease in equilibrium demand and an increase in equilibrium supply will lead to a drop in equilibrium price, but the effect on equilibrium quantity is unpredictable.

Prices will drop because producers are ready to accept a lower price and consumers now place less value on the product, regardless of the amount.

Reduced demand will cause the equilibrium price to fall and the supply to increase.

Thus, it leads to the decrease in supplied quantity.

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1 year ago
You just won the lottery. Congratulations! The jackpot is $85,000,000, paid in 10 equal annual payments. The first payment on th
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Answer:

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Explanation:

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Given that,  

Future value = $0

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The formula is shown below:

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So, after solving this, the  present value is $65,076,885.59

7 0
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