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Dafna1 [17]
2 years ago
7

the lease on a new office requires an immediate payment of $24,000 (in year 0) plus $24,000 per year at the end of each of the n

ext 10 years. at a discount rate of 14 percent, what is the present value of this stream of lease payments?
Business
1 answer:
Novosadov [1.4K]2 years ago
6 0

Answer:

<em><u>The answer is</u></em>: <u>$ 20,640 every year.</u>

<u />

Explanation:

<u>Leasing a new office requires an immediate payment of $ 24,000 (in year 0)</u>, plus $ 24,000 per year at the end of each of the next 10 years, which would be a total of $ 240,000 in 10 years, with a fee <u>Discount of 14 percent</u>, would be 240,000 x 0.14 = $ 33,600 in those 10 years, which would be $ 3,360 annually, <u>which subtracted from the $ 24,000 annually</u> would be a total of: $ 20,640.

<em><u>The answer is</u></em>: <u>$ 20,640 every year.</u>

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Government-wide financial statements include which of the following?
Vsevolod [243]

Answer:

C. Statement of Net Position and Statement of Activities.

7 0
3 years ago
Ted Corporation expects to generate free-cash flows of $200,000 per year for the next five years. Beyond that time, free cash fl
wariber [46]

Answer:

The value of Ted stock is $2.43

Explanation:

Free cash flow From Year 1 to 5 = $200000

Cash Flow Year 6 = 200000*1.05

                              = $210000

This cash flow is expected to grow forever, so the terminal value can be caluclated at Year 5 of the above perptuity by Gordon Growth model

Terminal Cash FLow Value at Year 5 = 210000/(15% - 5%)

                                                              = $2100000

Present Value of above stream

= 200000*PVIFA(5 yr, 15%) + 2100000*PVIF(5 yr, 15%)

= $200000*3.352 + $2100000*0.497

= $1714100  

Value of equity = Present Value of Firm - Value of debt

                          = $1714100 - $500000

                          = $1214100  

Number of shares = 500000

Value per share = $1214100/500000

                           = $2.43

Therefore, The value of Ted stock is $2.43

7 0
3 years ago
An example of an ongoing cost is _____.
Wittaler [7]

The answer is employee salaries

An example of an ongoing cost is employee salaries

3 0
3 years ago
Read 2 more answers
Which of the following best describe the interrelated components of internal control? Risk assessment process, backup facilities
kvasek [131]

Answer:

<em>Control environment; risk assessment process; control activities; the information system, including related business processes; and monitoring of controls.</em>

Explanation:

<em>From the following, the </em><em>OPTION which best illustrates the interrelated components </em><em>of internal control is </em><em>OPTION (C).</em>

Because as we know that interrelated components of internal control consists of co-ordination, as well as handling and controlling the system, taking illustration of the work and making of positive decisions.

So this is the reason OPTION (C) will be the answer, as it also consist all of the components which are present in interrelated components of internal control.

6 0
3 years ago
An experiment consists of measuring the speed of automobiles on a highway by the use of radar equipment. The random variable in
nalin [4]

Answer:

Continuous random variable

Explanation:

Continuous random variable is the one of the random variable which is defined as where the data could take infinitely many values for the variable.

For example, the random variable evaluates the time taken for doing something which is to be done or performed on continuous basis as there are infinite number of the possible times could be taken or consider.

So, in this case, the experiment comprise of evaluating the automobile speeds on the highway. Under this experiment, it have the infinite number. Therefore, this a continuous random variable

3 0
2 years ago
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