Answer: $1,193,838.80
Explanation:
The price of a bond is the sum of the present value of the coupon payments and the face value at maturity.
= Present value of coupon payments + Present value of face value at maturity
First adjust the variables for semi-annual:
Number of periods = 5 * 2 = 10 semi annual periods
Coupon payment = 8% * 1,100,000 * 1/2 years = $44,000
Yield = 6% / 2 = 3%
Present value of coupon payments:
The coupon payments are constant so are an annuity:
= Annuity * Present value of an annuity factor, 10 periods, 3%
= 44,000 * 8.5302
= $375,328.80
Present value of face value
= 1,100,000 * Present value of 1, 3%, 10 periods
= 1,100,000 * 0.7441
= $818,510
Selling price:
= 375,328.80 + 818,510
= $1,193,838.80
Answer: Option D
Explanation: In simple words, normal cash flows refers to those cash flows which have one initial investment at the beginning followed by a stream of inflows while in case of non normal cash flows the stream keeps changing from inflows to outflows.
Normal cash flows have only one IRR as there can only be single rate at which NPV will be zero while in case of Non normal there are two IRR due to uneven stream.
Thus, we can conclude that the correct option is D.
Answer:
Entry is given below
Explanation:
Entry for factory labor cost
DATE ACCOUNT DEBIT CREDIT
DEC 31 Work in Progress(w) $97,780
Factory overhead $6,340
Wages payable $104,120
Working
Work in progress = 3,860+4,300+24,500+18,600+7120+7400+32,000
Work in progress = 97,780
NOTE: Work in progress is sum of all direct labor cost
Factory Overhead = all indirect labor cost which is only $6,130
Answer:
Entrepreneurial Ventures. ... Small businesses usually deal with known and established products and services, while entrepreneurial ventures focus on new, innovative offerings. Because of this, small business owners tend to deal with known risks and entrepreneurs face unknown risks.
Thank you for calling. I am here to help you. What is you account number? Oh, I see it here. Let's start by updating you information so this won't happen again. Ok, you are updated. Now I see that this bill is for two months. Are you going to be able to pay in full? Ok, I will adjust your account and credit you $20.00 please don't hesitate if you need any other help, just call.
