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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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Both Bond Sam and Bond Dave have 7.3 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three
Ainat [17]

Answer:

-5.14 for sam

-18.01% for dave

Explanation:

We first calculate for Sam

R = 7.3%

We have 2% increase

= 9.3%

We calculate for present value of coupon and present value at maturity using the formula for present value in the attachment

To get C

1000 x 0.073/2

= 36.5

time= 3 years x 2 times payment = 6

Ytm = rate = 9.3%/2 = 0.0465

Putting values into the formula

36.5[1-(1+0.0465)^-6/0.0465]

= 36.5(1-0.7613/0.0465)

36.5(0.2385/0.0465)

= 36.5 x 5.129

Present value of coupon = 187.20

We solve for maturity

M = 1000

T = 6 months

R = 0.0465

1000/(1+0.0465)⁶

= 1000/1.3135

Present value = 761.32

We add up the value of present value at maturity and that at coupon

761.32 + 187.20

= $948.52

Change in % = 948.52/1000 - 1

= -0.05148

= -5.14 for sam

We calculate for Dave

He has 20 years and payment is two times yearly

= 20x2 = 40

36.5 [1-(1+0.0465)^-40/0.0465]

Present value = 36.5 x 18.014

= 657.511

At maturity,

Present value = 1000/(1+0.0465)⁴⁰

= 1000/6.1598

= 162.34

We add up these present values

= 657.511+162.34 = $819.851

Change = 819.851/1000 -1

= -0.1801

= -18.01%

4 0
3 years ago
Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies m
zmey [24]

Answer:

Answer:

1. Overhead over applied= $521,000

2. Factory Overhead   Dr.     $ 521,000

Cost Of Goods Sold Cr.    $ 521,000

3. Work in Process,  (ratio)   $521,000 *    7%=  36,470

Finished Goods,              $521,000   *     19%=  98,990

Cost of Goods Sold       $521,000    *    74%=  385,540

Total                        $521,000     100%

4. Difference between the two CGS= $ 136,060

Explanation:

Predetermined Overhead  Costs $1,152,000

Estimated activity level of 72,000 machine-hours

Overhead rate= $ 1152,000/ 72,000= $ 16 per hour

Manufacturing overhead cost $551,000

Actual hours = 67,000

Overhead applied to WIP = 67,000 * 16= $ 1072,000

Overhead over applied= $ 1072,000 - $551000= $521,000

Part 2:

Factory Overhead   Dr.     $ 521,000

Cost Of Goods Sold Cr.    $ 521,000

The Cost of Goods Sold is credited and Factory overhead is debited.

Part 3:

Suppose the overhead is applied in the following ratio

Work in Process,  (ratio)   $37,520          7%   (37520/536,00*100%)

Finished Goods,              $101,840         19%      (101840/536,00*100%)

Cost of Goods Sold       $396, 640        74%     (396,640/536,00*100%)

Total                        $536,000     100%

The  overhead over applied  would be allocated in the following way applying the same ratio as determined above.

Work in Process,  (ratio)   $521,000 *    7%=  36,470

Finished Goods,              $521,000   *     19%=  98,990

Cost of Goods Sold       $521,000    *    74%=  385,540

Total                        $521,000     100%

Part 4:

Cost of Goods Sold ( overhead applied of $396, 640) $1,472,600

Less    Overhead   overapplied      $ 521,000

CGS = $ 951,000

Cost of Goods Sold (overhead applied to WIP & FG) $1,472,600

Less   Overapplied Overhead $ 385,540

CGS=  $ 1087,060

Difference between the two CGS = $ 1087,060- $ 951,000= $ 136,060

5 0
3 years ago
This type of restaurant has a relatively large number of employees per customer
Firlakuza [10]
I think the answer is fine dining. Because if it is a fancy restaurant they want to have as many people to cater to each customer
6 0
3 years ago
Read 2 more answers
Which of the following is the best description of
olganol [36]

Answer:

D. Changing practices superficially to appear more  environmentally friendly to consumers than they  truly are.

Explanation:

Greenwashing is the act of corporate companies in their attempts to convey a false impression to their customers that their products are environmentally friendly. Through this process, they provide misleading information.

Companies provide misleading information to their customers, in making the impression that their products are more environmentally friendly than other products. Thus, <u>greenwashing can be described as changing the practices of the company/ brand superficially so that they appear more environmentally friendly than they really are to customers</u>.

4 0
2 years ago
Suppose the price of gasoline decreases from $4.20 to $2.00, and in response quantity demanded increases from 10600 to 11200. Us
Tems11 [23]

Answer:

0.079

Explanation:

Price elasticity of demand using midpoint formula can be calculated as follows

Formula

Elasticity of demand = (change in quantity/average quantity)/(change in price/average price)

Calculation

Elasticity of demand = (600/10,900)/(-2.1/3.05)

Elasticity of demand =-0.055 / -0.688

Elasticity of demand =-0.079

working

Change in price (2-4.1) = -2.1  

Average price (2+4.1)/2=3.05

Change in quantity (11,200-10600) = 600

average quantity (11,200+10,600)/2 = 10,900

 

The elasticity of demand is inelastic as the elasticity is below 1.

4 0
2 years ago
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