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Novay_Z [31]
3 years ago
10

An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. If the required return is

6 percent, what is the value of the investment? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Business
1 answer:
drek231 [11]3 years ago
4 0

Answer:

Today, the investment is worth $31,997.29

Explanation:

Giving the following information:

An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. The required return is 6 percent

First, we need to calculate the final value, using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual pay= 5,900

n= 15

i= 0.06

FV= {5,900*[(1.06^15)-1]} / 0.06= $137,328.22

Now, we can determine the present value:

PV= FV/ (1+i)^n

PV= 137,328.22/ 1.06^25= $31,997.29

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Answer:

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3 years ago
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A company completes 21,000 units this month and has ending goods in process inventory of 3,000 units which are estimated to be 4
kolezko [41]

Answer:

Total cost of transferred to finished goods inventory  = $ 136,500

Explanation:

To value cost of transferred finished goods, we multiply the cost per equivalent unit of production (cost per EUP) by the the number of equivalent units (EUP) for each of the cost element.

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3 years ago
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8 0
4 years ago
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
Orlov [11]

Answer: $54,000

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Referring to the data regarding store operation given above, difference between cash receipt and cash disbursement for December could be calculated as follows;

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