Answer:
Present value= $3,642,651.54
Explanation:
Giving the following information:
You have just won the lottery and will receive $530,000 in one year. You will receive payments for 25 years, and the payments will increase by 4 percent per year. The appropriate discount rate is 10 percent.
First, we need to calculate the final value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment= 530,000
i= 0.04 + 0.10= 0.14
n= 25
FV= {530,000*[(1.14^25)-1]}/0.14
FV= 96,391,538.43
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 96,391,538.43/ (1.14^25)
PV= $3,642,651.54
Answer:
A. 8%
Explanation:
Profit margin = (Operating income / Revenue)
Profit margin = ($80,000 / $1,000,000)
Profit margin = 0.08
Profit margin = 8%
Answer:
c. Work in Process--Department 2 375,000 Work in Process--Department 1 375,000
Explanation:
The journal entry is shown below:
Work in Process - Department 2 $375,000 ($100,000 + $125,000 + $150,000)
To Work in Proces - Department 1 $375,000
(Being the flow of cost from Dept 1 to Dept 2 is recorded)
Here the work in process for dept 2 is debited as it increased the assets and credited the work in process for dept 2 as it decreased the assets
Answer:
a. Taking the train into Boston, Katie reviewed the meeting minutes.
Explanation:
This is the best way to rewrite this sentence in order to avoid the problem of the dangling modifier. A dangling modifier is a word or a phrase within a sentence that modifies a word that is not clearly stated. In this case, the original sentence makes it sound as if the meeting minutes were the ones taking the train into Boston. The reviewed sentence gets rid of this confusion.
Answer:
d. This is an example of a direct transfer of capital.
Explanation:
Direct transfer of stocks or securities refers a to situation whereby a seller of securities or stocks sell them to the buyer direct without involving any financial institution. Under this, seller will directly deliver the security certificate to the buyer who will in turn pay the seller in cash or by check immediately.
Therefore, collecting check from your brother for the Microsoft stock and giving your brother the stock certificate is an example of a direct transfer of capital.
