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n200080 [17]
2 years ago
8

you have decided to sublet your apartment. your tenant has agreed to pay $150 per month starting today (with payments made at th

e beginning of each month)there are eight months left on your lease in the appropriate interest interest rate is 6%, compounded monthly. what is the present value of this agreement?
Business
1 answer:
mixas84 [53]2 years ago
4 0

Answer:

PV= $1,173.44

Explanation:

Giving the following information:

your tenant has agreed to pay $150 per month. There are eight months left on the lease, the appropriate interest rate is 6%, compounded monthly.

<u>To calculate the net present value, first, we need to calculate the final value and then use the present value formula.</u>

FV= {A*[(1+i)^n-1]}/i

A= annual pay= 150

i=0.06/12= 0.005

n=8

FV= {140[(1.005^8)-1]}/0.005= 1,221.21

Now, we calculate the present value:

PV= FV/(1+i)^n

PV= 1,221.21/1.005^8= $1,173.44

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Mackalya is an office secretary at the "All American Office Products Company." This Company sells office supplies and office equ
Bogdan [553]

Answer:

1. Yes; Journal entry

2. Debit- Printing & Stationery Expense $160 (value for 8 boxes)

Credit- Cost of goods sold or Trading account A/c $160

3. Leaves to the cost of goods sold account

Explanation to:

1. Mackalaya used inventory. Remember, inventory is a term used to refer to all the merchandise (goods or products) a company has at the moment in stock.

2. The Journal entry to be made would be

Debit- Printing & Stationery Expense $160 and Credit this value to Cost of goods sold or Trading account A/c section of the Journal entry.

3. Remember, the cost of goods sold cares for all inventory sales, therefore it would be credited with value of the inventory item sold by the company.

6 0
3 years ago
In companies that do not have "no lay-off" policies, the total direct labor cost for a budget period is computed by multiplying
kari74 [83]

Answer:

a. True

Explanation:

The formula to compute the total direct labor budget for the budget time period is shown below;

Total direct labor budget = Total direct labor hours required × direct labor wage rate

Through multiplying the direct labor hours required with the direct labor wage rate we can get the total direct labor budget and the same is to be considered

Hence, the correct option is a. True

4 0
2 years ago
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all invest
Rzqust [24]

Answer:

E. $7,190

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

For project A,

Cash flow in year 0 = $-14,500

Cash flow in year 1 = $9,500

Cash flow in year 2 = $9,500

Cash flow in year 3 = $9,500

I = 15%

NPV = $7190.64

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0
3 years ago
Unemployment would cause an economy to Group of answer choices produce outside its production possibilities frontier. produce in
bagirrra123 [75]

Answer:

The correct answer is: produce inside its production possibilities frontier.

Explanation:

The production possibility frontier shows the maximum possible combination of two goods that an economy can produce using all the available resources and state of technology.

Unemployment in an economy means that all the available resources are not being completely used. So, the economy will operate at a point inside the production possibility curve.

Production at this point will be feasible but allocatively inefficient.

3 0
3 years ago
Which of the following circumstances usually comes before a period of economic contraction?
erik [133]
C
A low GDP for two or more consecutive quarters is usually followed by economic contraction. 
8 0
3 years ago
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