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blsea [12.9K]
3 years ago
14

Ahmed is a professional football player in UAE. Aljazeera Club is negotiating with him to join the club. The Club presented two

offers to Ahmed; the first one is to pay him a big bonus on the signing day of the contract and smaller payments in the future, or a small amount now and bigger payments in the future. Which option should Ahmed accept and why? What about Aljazeera Club, which option is better for them?
Question 2 (6 marks)
Al-khaznah Co. wants to sell an electrical generator for AED 165000 in 2024. The price of this generator in market today is $94000 (according to GE company who is the producer of this generator). If the discount rate on this generator is 13 percent per year. Do you think the firm will make a profit if they sell this generator? What is the rate that will make the firm breakeven?
Note: Profit = Revenue -cost

Question 3 (10 marks)
Your uncle Abdallah is celebrating his 33th birthday today and wants to start saving for his retirement at the age of 63. He wants to be able to withdraw AED 100,000 from his saving account on each birthday for 20 years following his retirement. The first withdraw will be on his 64th birthday. Your uncle intends to invest his money in a local bank in Abu Dhabi that offers 7% interest rate per year. He wants to make equal payments on each birthday into the account established in the local bank for his retirement fund.
1. If your uncle starts making these deposits on his 33th birthday and continues to make deposits until he is 63, what amount must he deposit annually to be able to make the desired withdrawals at retirement? (4 marks)
2. If your uncle has just inherited a large sum of money, so instead of making equal payments, he has decided to pay one lump sum payment on his 33th birthday to cover his retirement needs. What amount does he have to deposit? (2 marks)
3. If your uncle’s employer informs your uncle that he will contribute AED 1,000 to your uncle account every year. Also, if your uncle expects AED100,000 from another investment on his 53th birthday, which he will also put into the retirement account. What amount must he deposit annually now to be able to make the desired withdrawals at retirement. (4 marks)
Business
1 answer:
marin [14]3 years ago
3 0
Go ahead please let do one of the you know eye contact and send t to you think about that I am ejust own time I am
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What is a warranty?
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On January 1, 2017, Sheridan Company had a balance of $417,000 of goodwill on its balance sheet that resulted from the purchase
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Answer:

patent      301,350 debit

       cash                 301,350 credit

franchise 633,600 debit

        cash               633,600 credit

development expense   189,000 debit

         cash                                    189,000 credit

year-end adjustment:

amortization expense   50,225 debit

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amortization expense   31,680‬ debit

         patent                                  31,680‬ credit

Explanation:

The patent and franchise will be activate as there is a certain possibility to produce positive cashflow in the future.

They will be adjusted at year-end for amortization:

301,350 / 6 = 50,225 amortization on patent

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The development cost will be treated as expense as there is no precise information that can determined the development cost which yield a positive outcome.

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This strategy will help Cedric to answer the questions while doing the final writing in answer sheet. By doing this he can also improve his speed with accuracy while answering.

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