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prisoha [69]
2 years ago
7

You expect to receive year-end bonuses of $8,000 at the end of this year, $16,000 at the end of year 4, $20,000 at the end of ye

ar 8, and $25,000 at the end of year 10. If your opportunity cost is 6%, what is the present value today of your expected future bonuses?
Business
1 answer:
yulyashka [42]2 years ago
7 0

Answer:

Total PV= $46,728.79

Explanation:

Giving the following information:

Cash flow:

Cf1= $8,000

Cf4= $16,000

Cf8= $20,000

Cf10= $25,000

Discount rate= 6%

To calculate the present value, we need to use the following formula on each cash flow:

PV= FV/(1+i)^n

Cf1= 8,000/(1.06^1)= 7,547.17

Cf4= 16,000/(1.06^4)= 12,673.50

Cf8= 20,000/(1.06^8)= 12,548.25

Cf10= 25,000/(1.06^10)= 13,959.87

Total PV= $46,728.79

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a bond has a face value of $1,000, an annual coupon rate of 7 percent, yield to maturity of 10 percent, and 20 years to maturity
rewona [7]

The bond that has a face value of $1,000 has a duration of 10 years.

<h3>What is a bond?</h3>

A bond is a type of security in the financial world where the issuer (debtor) owes the holder (creditor) a debt and is required, depending on the terms, to repay the bond's principal (i.e., the amount borrowed) at the bond's maturity date as well as interest (referred to as the coupon) over a predetermined period of time. The interest is typically due at regular intervals, such as every six months, once a year, and less frequently at other times. To finance long-term investments or, in the case of government bonds, to finance immediate expenses, the borrower can obtain external funds through the sale of bonds. Both bonds and stocks are considered to be forms of security, but the main distinction between the two is that (capital) stockholders have an equity stake in a company, whereas bondholders have a creditor stake.

To learn more about bond, visit:

brainly.com/question/28362992

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5 0
1 year ago
Given the following, calculate total manufacturing costs: Direct materials: $40,000; Direct labor: $100,000; Manufacturing overh
vfiekz [6]

Answer:

cost of goods manufactured= $278,000

Explanation:

Giving the following information:

Direct materials: $40,000

Direct labor: $100,000

Manufacturing overhead applied: $120,000

Beginning Work in process inventory: $30,000

Ending Work in process inventory: $12,000

<u>To calculate the total manufacturing costs, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 30,000 + 40,000 + 100,000 + 120,000 - 12,000

cost of goods manufactured= $278,000

4 0
3 years ago
Following are the transactions for Valdez Services. The company paid $2,000 cash for payment on a 6-month-old account payable fo
laiz [17]

Answer:

accounts payable   2,000 debit

               cash                     2,000 credit

salaries expense   1,200 debit

                 cash                     1,200 credit

Equipment           39,000 debit

               cash                    39,000 credit

utilities expense        800 debit

               cash                    800 credit

B-Valdez drawins    4,500 debit

              cash                   4,500 credit

Explanation:

In all cases the company is using cash. It is performing a cash disbursements thus we credited.

In the debit side we post what we receive or destination of the cash.

Like, equipment, salaries expense and so on.

7 0
3 years ago
Cafe x bought 20,000 cups for $1,400 when they opened for business last month. At the end of the month they had 8,000 cups left.
JulsSmile [24]

<u>Calculation of the cost of goods sold (cogs) for the month;</u>


It is given that Cafe x bought 20,000 cups for $1,400 when they opened for business last month. At the end of the month, they had 8,000 cups left.  It means the Cups sold are (20,000-8000) = 12,000 cups

And the Cost of 12,000 cups sold shall be $1400*12000/20000 = $840


Hence the cost of goods sold (cogs) for the month is <u>$840.</u>




5 0
3 years ago
Jamie and his parents are traveling from one part of the city to another. on the way, they stop at a gas station to refuel the t
Crank
<span>In this scenario the small self-service retail store attached to the gas station that sells food items like sandwiches and soda as well as nonfood items such as groceries, magazines, and alcohol is most likely a </span>convenience store.
<span> The term convenience store describes a store that sells everyday items.
</span><span>(a limited selection of basic items).</span>
8 0
3 years ago
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