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goldenfox [79]
3 years ago
12

An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $5

00 at the end of Year 6. If other investments of equal risk earn 8% annually, what is this investment’s present value? Its future value? Ehrhardt, Michael C.. Corporate Finance: A Focused Approach (MindTap Course List) (p. 186). Cengage Learning. Kindle Edition.
Business
1 answer:
katrin2010 [14]3 years ago
5 0

Answer:

$923.98 and $1,466.58

Explanation:

The computation of the present value is shown below:

Year Cash flows Discount rate 8% PV of cash inflows  

1          $100         0.9259259259 $92.59

2          $100         0.8573388203 $85.73

3          $100         0.793832241         $79.38

4         $200         0.7350298528 $147.01

5         $300         0.680583197         $204.17

6         $500         0.6301696269 $315.08

Present value                             $923.98

Now the

Future value = Present value × (1 + rate)^number of years

where,

Present value = $923.98

Rate = 8%

Number of years = 6 years

So, the future value

= $923.98 × (1 + 8%)^6

= $1,466.58

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Ilia_Sergeevich [38]

The depreciation expenses to be shown in the statement of profit or loss and other comprehensive income for the year ended (31-05-2019) is R26,295.

<h3>What is depreciation?</h3>

Depreciation can be defined as a process in which the monetary (financial) value of an asset decreases or falls over time, especially due to wear and tear.

<h3>How to determine the depreciation expenses?</h3>

First of all, we would calculate the expected number of units produced by CAAT as follows:

Expected number of units produced = 15,000 + 13,000 + 11,000 + 10,500 + 10,500

Expected number of units produced = 60,000.

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Read more on depreciation expenses here: brainly.com/question/25806993

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2 years ago
During 2020, Sarasota Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Sarasota for
vfiekz [6]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

Gross profit = Sales - Cost of goods sold

= (440 x 90 + 220 x 80 + 264 x 50) - (440 x 56.7 + 220 x 50.4 + 264 x 31.5)

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Ending inventory schedule attached in the excel archive

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The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transac
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Answer:

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Explanation:

Value of cash received is :

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Paid-in Capital in Excess of Par ValuePreferred Stock is $25 ($75 -$50)

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