Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, a
igor_vitrenko [27]
Answer:
The present value of cash flows is $ 5,292.13
Explanation:
The present value is today's equivalence of the company's future cash flow discounted using the 7% interest rate as a discount rate.
Formula for pv of a cash flow=cash flow/(1+r)^n
r is the 7% interest rate
n is the relevant year each cash flow relates to
PV=$1,350/(1+7%)^1+$1550/(1+7%)^2+$1550/(1+7%)^3+$1850/(1+7%)^4=
$ 5,292.13
Based on the amount that Ramirez guaranteed the lessor and the estimated residual value, the amount to be added to the right-of-use asset is $1,434.33.
<h3>What amount should be added to the right-of-use asset?</h3>
This would be the present value of the difference between the guaranteed amount and the estimated residual value.
= 42,300 - 40,200
= $2,100
Present value:
= 2,100 / (1 + 10%)⁴
= 1,434.328
= $1,434.33
In conclusion, the right-of-use asset amount to be added is $1,434.33.
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The book value of the bond at the end of year 10 is 1,160
What is the basis for determining premium amortization?
The bond premium amortization is assumed to be determined using the straight-line basis such that bond premium amortized in each year is the same for 18 years of bond investment, in other words, the year 10 bond premium amortization of 20 is the same for all other years.
Total premium on bond issuance=20*18
total premium on bond issuance=360
bond price issued price=par value+ premium=1000+360=1360
As at the end of the 10th year, bond premium amortized thus far is 20 multiplied by 10 years
bond premium amortized=20*10=200
book value of the bond at the end of year 10=1360-200
book value of the bond at the end of year 10=1,160
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<em>Answer: The opportunity cost is time spent studying and that money to spend on something else. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources</em>
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<em>Explanation:</em>
Answer:
Part 4
The focused on crowd would be secondary school and undergrads. Since the store is situated in the city, which is storage room to our present area according to given data. Focusing on youthful crowd would sure offer lift to deals.
Market entrance use organization current assets and abilities to pick up benefit. It is least dangerous as we should simply keep up piece of the overall industry in showcase. It is like focusing on the database or clients we as of now have, the individuals who will purchase the item when we dispatch it.
Market improvement advises us to catch new fragments and territory with the goal that we can build deal by focusing on new clients and at the same time growing organization branches to new areas.
An item improvement center around explicit objective crowd and more often than not it is made for existing clients. It use organization quality and convey explicit items to existing clients.
Broadening is the most dangerous technique as it requires market and item improvement. The market pattern is generally significant right now the organization can endure immense if the item neglects to catch showcase.
The technique is straightforward comprehend the requirements of crowd and afterward convey the item. For this undertaking we need to consider the fulfillment in the region, comprehend what they are offering and how might we beat them by giving better highlights at same or less expense.
Part 5 (since I don't have content that is being alluded, I will give general methodology that will work fine and dandy)
The execution thought would expect us to accomplice up with nearby stores from the start and request that they promote our items until we open new stores in that area. We can have separate area showing our items and structures and what make us novel from other in the market. We can put accentuation on how our image convey quality items and how they are useful for focused crowd. We can likewise select a salesman on most mainstream areas that will help instruct the clients about our item and its advantages. We can likewise actualize new arrangements for opening week like purchase 2 sets and get 40% rebate. We need to push comparative techniques to pick up consideration and afterward promoting our items to new crowd.
Part 6
To assess our system we have to accomplish our objectives in or before time. We need to assess edges and benefits for better outcomes. On the off chance that our methodology can bring new clients and we can hold them after some time. This will help support our development and afterward we can concentrate on catching various markets around there. This will help boosting our offer in the market.
