Answer:
$106,595
Explanation:
Given:
Initial market rate = 9%
Dropped market interest rate, r = 7% per year
or
= 7% × [6 ÷ 12]
= 3.5% = 0.035
Remaining time, n = 9 years = 18 semi annual periods
Now,
Value of the bond at the retirement
= [ PVAF × Interest payment] + [ PVF × face value]
here,
Present value of annuity factor, PVAF = 
or
PVAF = 
or
PVAF = 13.189
And,
Interest payment = $100,000 × 8% × [6 ÷ 12 ] [since, 8% bonds]
= $4000
Present value factor = 
= 0.538
par value = $100,000
= [13.189 × $40] + [0.538 × 100,000]
= 52,758.7316 + 53,836.114
= $106,595
Hence,
The correct answer is option $106,595
The four primary functions of managers are planning, organizing, leading, and controlling. By using the four functions, managers work to increase the efficiency and effectiveness of their employees, processes, projects, and organizations as a whole.
Opportunity cost is the loss due to forgoing one opportunity to select another one alternative.
In this case, the forgone alternative is the full-time employment and other expenses for the term when the alternative chosen is to be in school. In this case, room and board expenses remain the same whether in school or working full time and thus not considered. The part-time amount earned while at school is subtracted as it would be compensated be during full time employment.
Therefore;
Opportunity cost = $20,000+$10,000+$1,000-$8,000 = $23,000
A short-term liability is a payment that is due in 12 months or less. Hence notes payable due in six months is reported as a short-term liability.
<h3>
What is a liability?</h3>
In the parlance of Accounting and Finance, a Liability is a financial obligation that the company owes to individuals, or organizations with which it has transactional or legal relationship.
Hence, it is correct to indicate that notes payable due in six months is reported as a short-term liability.
Learn more about liability at;
brainly.com/question/14921529
#SPJ11
Answer:
Total present value=$617,523.24
Explanation:
The formula for calculating continuous compounding is given as follows
F=P(e^it)
F=future value
P=present value
i=interest rate
t=time involved i.e 1 year or 2 year
e=Mathematical constant=2.7183
By applying above mentioned formula, the present value of inventory control software by Baron Chemicals shall be calculated as follows:
Present value of year 2 Cash flow= $286,555.76
($350,000/e^10%*2)
Present value of year 1 Cash flow= $180,967.48
($200,000/e^10%*1)
Present value of year 0 Cash flow= $150,000
Total present value=$617,523.24
