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Anit [1.1K]
3 years ago
7

Woodruff Inc. offers you a project that will pay you $17,000/year. If the cost of this project is $100,000, and the discount rat

e is assumed to be 13%, how long must the cash inflows ($17,000 per year) last, before it matures, so that you will accept this project
Business
1 answer:
otez555 [7]3 years ago
3 0

Answer:

The length of time = 12 years

Explanation:

<em>The number of years the case would be determines the length time it takes the present value of  annuity of 17,000 to equate the initial cost </em>

Initial cost = A× (1- (1+r)^(-n)/r =

A- 17,000, r- 13%, n - ?

So we will need to work out the value of " n"

100,000 = 17,000 × 1- 1.13^(-n)/0.133

100,000/17,000 =1- 1.13^(-n)/0.13

5.88235 ×0.13 = 1- 1.13^(-n)

n = 12

The number of years is approximately 12 years

The length of time = 12 years

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3 0
1 year ago
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Jet001 [13]

Answer:

False

Explanation:

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In preparing a trial balance, accountants usually follow the order of accounts as they follow each other as per the general ledger.  It is not a requirement that either debits or credits come first.

3 0
3 years ago
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astraxan [27]

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The first options refers to senior managers in firms with large domestic markets. To be a senior manager demands experience in the market they are in so it is not far fetched to say that they are more knowledgeable in domestic practices than international.

The second option speaks of managers with little International experience meaning they are more likely to engage in transferability between domestic and International practices.

The third option speaks of managers who built their careers on domestic experience. They will find it hard letting go of what has brought them such success so will more likely apply domestic practices on an international scale.

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5 0
3 years ago
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