Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under th
e first option, Julie would receive a lump sum of $157,000 immediately as her full retirement benefit. Under the second option, she would receive $20,000 each year for 6 years plus a lump-sum payment of $65,000 at the end of the 6-year period. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:
1-a. Calculate the present value for the following assuming that the money can be invested at 12%.
1-b. If she can invest money at 12%, which option would you recommend that she accept
Required:
1-a. Calculate the present value for the following assuming that the money can be invested at 12%.
1-b. If she can invest money at 12%, which option would you recommend that she accept
1 answer:
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Answer:
"2000 units" is the right solution.
Explanation:
The given values are:
Transferred from WIP,
= 53,000 units
Units sold,
= 61,000 units
Beginning inventory,
= 10000 units
Now,
The total number of finished goods will be:
=
On substituting the values, we get
=
=