1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
liraira [26]
4 years ago
8

Problem 5-35 Comparing Cash Flow Streams [LO 1] You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They

’ve offered you two different salary arrangements. You can have $8,200 per month for the next two years, or you can have $6,900 per month for the next two years, along with a $37,000 signing bonus today. Assume the interest rate is 6 percent compounded monthly. Requirement 1: If you take the first option, $8,200 per month for two years, what is the present value? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $ 139912.93 Requirement 2: What is the present value of the second option?
Business
1 answer:
Minchanka [31]4 years ago
7 0

Answer:

PV of 1st option = $185,015.50

PV of 2nd option = $192,683.78

Explanation:

Computing the present value of the monthly payments, we use the formula PV = \frac{A(1-(1+r)^{-n}) }{r}

Where PV = present value of the monthly payments

A = monthly salary

r = monthly interest rate = 6%/12 = 0.5% = 0.005

n = number of months = 24 months

PV of the 1st option, $8,200 monthly for the next 2 year

PV = \frac{8,200(1-(1.005)^{-24}) }{0.005} = $185,015.50.

PV of the 2ns option, $6,900 monthly + $37,000 signing bonus

PV = \frac{6,900(1-(1.005)^{-24}) }{0.005}+37,000 = $155,683.78 + $37,000 = $192,683.78.

You might be interested in
A company has net income of $ 225,000 and declares and pays dividends in the amount of $ 75,000 . What is the net impact on reta
egoroff_w [7]

A company has net income of $ 225,000 and declares and pays dividends in the amount of $ 75,000 .

c. An increase of $ 150,000 is the net impact on retained earnings is the correct option.

Income is the consumption and savings opportunity that a business captures within a specific time frame, usually expressed in money. Income is difficult to define conceptually and definitions vary by region.

For most people, income means gross income in the form of wages and salaries, return on investment, pension payments, and other income.

The definition of income is the amount of money received by an individual, group or business during a specified period. An example of income is an annual salary of $70,000.

Learn more about income here:brainly.com/question/25745683
#SPJ4

7 0
2 years ago
A project manager has just been assigned to a new project and has been given the project charter. The FIRST thing the project ma
Nookie1986 [14]

Answer:

Confirm that all the stakeholders have had input into the scope.

Explanation:

When assigned to a new project, the project manager may be tempted to start planning immediately. One may conclude that the first thing is planning. It will be wise and smart to understand the project charter before planning. Therefore, it is very important to " Confirm that all the stakeholders have had input into the scope." So, Option B is the correct answer.

7 0
3 years ago
A three-month HP put option with an exercise price of $60 sells for a premium of $8. The put is in the money only if the price o
Mkey [24]

Answer:

less than $60 per share

Explanation:

A put option is the money when the exercise price is greater than the asset price, thus the put has to be less than $60

3 0
3 years ago
Read 2 more answers
Under section 404 of the sarbanes oxley act auditors are required to
siniylev [52]
Basically, the Sarbanes Oxley Act was not a single Act, but a series of Acts that were designed to expand starting requirements for companies such as firms and overall businesses. Section 404 is one of the Acts that are specifically set on the company's control on their financial reports made. As a result, internal management or more commonly known as the Internal Affairs program of a company must provide a detailed and clear-written (straight-to-the-point) report on the company's structure (how they do things) and creating, or establishing, a set of procedures on how they plan to report their financial status.
6 0
3 years ago
Cost allocation involves:_______.A. Identifying a cost driver for each cost to be allocated. B. Calculating an allocation rate f
Bess [88]

Answer:

d. all of the answers are correct

Explanation:

Cost allocation is being done:

1)  to influence management behavior and thus promote goal and managerial effort,

2) to measure inventory costs and to know of goods sold on a product or project,

3) to justify cost (e.g to justify an accepted bid).

For example, if you are to determine the amount of electricity consumed at a particular period, the number of units consumed determines the total cost to be paid for the electricity consumed. In such an instance, the number of units of electricity consumed is a Cost Driver.

   A cost driver is the most appropriate way of calculating or determining a specific cost.

   Variable cost drivers can come in the form of hourly costs, costs per unit, or batch costs, among others.

   Cost drivers can be fixed costs, such as in the case of set-up costs.

4 0
4 years ago
Other questions:
  • Cutting costs is the best way to maximize profitability. <br> a. True <br> b. False
    12·1 answer
  • Media richness most directly refers too
    13·1 answer
  • Patton Company purchased $400,000 of 10% bonds of Scott Co. on January 1, 2011, paying $376,100. The bonds mature January 1, 202
    7·1 answer
  • If the price of gasoline is relatively high for a long time, consumers are more likely to buy fuel-efficient cars or switch to a
    15·1 answer
  • Sometimes speakers eliminate details from their speeches in an attempt to influence audience opinion. This concern relates to wh
    11·1 answer
  • 1. Out of 115000 students, 20% failed in SLC,40% of failers.
    7·2 answers
  • What is a stock?
    6·2 answers
  • File cabinets are conventional storage cabinets that are deeper than they are wide and have files arranged from front to back.
    6·1 answer
  • Data for Corporation and its two divisions, Domestic and Foreign, appear below:
    11·1 answer
  • a good marketer can identify potential opportunities by paying close attention to environmental ________; it is important to con
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!