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adell [148]
3 years ago
13

Your grandfather has offered you a choice of one of the three following alternatives: $8,500 now; $3,000 a year for five years;

or $41,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. Assuming you could earn 9 percent annually, compute the present value of each alternative:
Business
1 answer:
Mila [183]3 years ago
3 0

Answer:

Check the explanation

Explanation:

a1.Present value of $8500=$8500

the Present value of $3000 a year for 5 years=$3000*Present value of annuity factor(9%,5)

the Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=$3000[1-(1.09)^-5]/0.09

=$3000*3.889651263

=$11668.95(Approx)

The Present value of $41000=$41000*Present value of discounting factor(rate%,time period)

=$41000/1.09^5

=$26647.19(Approx).

Therefore  $41,000 received at end of five years is a better value.

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Expected direct materials purchases in Metlock Company are $204000 in the first quarter and $264000 in the second quarter. 35 pe
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Answer:

The budgeted cash payments for the second quarter are $225000

Explanation:

The cash payments in the second quarter will comprise of cash purchases for the second quarter which are 35% of purchases for the second quarter along with 65% of payments due for purchases of the first quarter.

The cash payment budgetedn for the second quarter is,

Cash payment = 0.35 * 264000 + 0.65 * 204000  = $225000

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ikadub [295]

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$50,000:$400,000

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Based on the information given we were told that the Broker's commissions and other selling expenses was the amount of $50,000 in which They as well made purchased of a new residence in July for the amount of $400,000 which means that the recognized gain will be $50,000 the amount of Broker's commissions and other selling expenses and the adjusted basis of the new residence will be $400,000 which is the cost of purchasing a new residence.

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One of the advantages of entering into a partnering agreement is that the likelihood that disputes will arise under their contract is reduced. This is mainly due to the fact that the agreed upon contract contains all the rules and regulations that both entities have agreed to follow. Therefore if there is any difference in decision the contract can be brought up and must be followed.

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