Answer:
NPV= 1,036.16
Explanation:
Giving the following information:
Initial investment= $9,000
Cash flows= $2,700 at the end of each of the next four years.
Interest rate= 3%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 2,700/1.03= 2,621.36
Cf2= 2,700/1.03^2= 2,545
Cf3= 2,700/1.03^3= 2,470.88
Cf4= 2,700/1.03^4= 2,398.92
Total= 10,036.16
NPV= -9,000 + 10,036.16
NPV= 1,036.16
Nothing the payments will cease.
Payments:
For the balance of the annuitant's life, a straight or pure life annuity will provide a set sum of income. Regardless of the amount of unpaid principal, this payment will end at death. There are no compensation or refunds made to survivors.
The beneficiary will receive the amount placed into the plan or the cash value, whichever is larger, if the annuitant passes away before the payment term.
Banknotes and coins (cash), deposits, and credit on an account with a financial institution or a comparable entity that can be run using payment instruments are all considered means of payment.
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Explanation:
Based on oligopoly market forms, Zebadiah is using the idea of interdependence to take the right decision for his teddy products.
Answer:
D) debit Income Summary $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800.
Explanation:
Account Debit Balance Credit Balance
Cash $20,500
Accounts Payable $2,000
B. Conway, Drawing $600
B. Conway, Capital $13,000
Fees Revenue $18,000
Salary Expense $2,600
Rent Expense $3,000
Supplies Expense $ 1,900
Advertising Expense $800
To close the income statement, the income summary account is introduced. All credit items on the income statement (revenue and incomes) are debited and the income summary is credited while the debit balance accounts (all expenses) are credited and the income summary is debited.
Total expense = $2,600 + $3,000 + $1,900 + $800
= $8,300
