Answer:
B) Alpha’s net income will be lower that Beta’s during the fourth year of the equipment’s service life.
Solution:
a.
N I/Y PV PMT FV
10 × 2 10 / 2 CPT
PV −1,000.00 100 / 2 1,000
10%/2=5% *1000= 50
n=20
i=5%
pmt 50
fv 1000
Answer: $1,000.00
b.
N I/Y PV PMT FV
5 × 2 10 / 2 CPT
PV −1,000.00 100 / 2 1,000
n=8
pmt 50
i 5%
fv 1000
Answer: $1,000.00
a.
Appendix D
Present value of interest payments:
PVA = A × PVIFA (5%, 20)
= $50 × 12.462
= $623.10
Appendix B
Present value of principal payment at maturity:
PV = FV × PVIF (5%, 20)
= $1,000 × .377
= $377.00
Bond price = $623.10 + 377.00
= $1,000.10
b.
Appendix D
Present value of interest payments:
PVA = A × PVIFA (5%, 10)
= $50 × 7.722
= $386.10
Appendix B
Present value of principal payment at maturity:
PV = FV × PVIF (5%, 10)
= $1,000 × .614
= $614.00
Bond price = $386.10 + 614.00
= $1,000.10
Answer:
b. 0.64
Explanation:
The computation of the inventory turnover for the year 2016 is shown below:
Inventory turnover = Cost of goods sold ÷ Average inventories
where,
Average inventories is
= ($11,970,656 + $10,632,462) ÷ 2
= $11,301,559
And the cost of goods sold is $7,204,884
So, the Inventory turnover is
= $7,204,884 ÷ $11,301,559
= 0.64 times
We simply applied the above formula
Answer:
d. was able to fund his project through seed money.
Explanation:
Seed money or seed funding is the first fund or seed that is obtained for a new business idea. Mostly seed money is obtained from friends, family, and colleagues.
Herbert had a great idea by presenting a demonstration of his product on a website, attracting people with interest to fund the start-up.
Answer:
$951.02
Explanation:
We use the present value formula that is shown on the attachment. Kindly find it below:
Data given in the question
Future value = $1,000
Rate of interest = 5.3% ÷ 2 = 2.65%
NPER = 15 years - 1 year × 2 years = 28 years
PMT = $1,000 ×4.8% ÷ 2 = $24
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $951.02