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Crazy boy [7]
3 years ago
7

Marle Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2021, with a performanc

e bonus of $50,000 if the building is completed by July 31, 2021. The bonus is reduced by $10,000 each week that completion is delayed. Marle commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:
Completed by Probability July 31, 2021, 65% August 7, 2021, 5% August 14, 2021, 5% August 21, 2021, The transaction price for this transaction, based on the expected value approach, is Select one:
a. $950,000
b. $995,000
c. $685,000
d. $652,500
Business
1 answer:
Mandarinka [93]3 years ago
5 0

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, computation of the given data are as follows:

As probability is not correctly given.

Let probability be:

July 31, 2021 = 65%

August 7, 2021 = 25%

August 14, 2021 = 5%

August 21, 2021 = 5%

So, We can calculate the transaction price by using following formula:

Transaction price = (Amount + Bonus) × Probability

July 31, 2018 =  ($950,000 + $50,000) × 65% = $650,000

August 7, 2018 = ($950,000 + $40,000) × 25% = $247,500

August 14, 2018 = ($950,000 + $30,000) × 5% = $49,000

August 21, 2018 = ($950,000 + $20,000) × 5% = $48,500

So, Total transaction price = $650,000 + $247,500 + $49,000 + $48,500

= $995,000

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You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be made over a four-year period, w
Sloan [31]

Answer:

A = 28000 [\frac{0.12 (1.12)^4}{(1.12)^4 -1}]

A = 28000 [\frac{0.12*1.574}{1.574-1}]

A=28000*0.3292 = 9218.564

So then the annual pay would be $ 9218.564 for this case

Explanation:

For this question we can use the Equivalent annual value (A) given by the following expression:

A = PV [\frac{i (1+i)^t}{(1+i)^t -1}]

Where PV = 28000 represent the pesent value

i = 0.12 since the rate is yearly

t = 4 since we have 4 years to pay

So then we have everything to replace and we got:

A = 28000 [\frac{0.12 (1.12)^4}{(1.12)^4 -1}]

A = 28000 [\frac{0.12*1.574}{1.574-1}]

A=28000*0.3292 = 9218.564

So then the annual pay would be $ 9218.564 for this case

And this amount would be paid each year in order to pay all the money after 4 years.

6 0
3 years ago
Giselle has $10,000. She could put it in a CD earning 2% interest, a tech stock earning an 18% return this year, a mutual fund l
Arturiano [62]
The investment with the lowest volatility is the CD.

CD stands for Certificate of Deposit. It is a savings certificate that states that the bearer of the certificate is entitled to receive interest. A Certificate of Deposit reflects the amount invested, specified interest rate, and its maturity date.

In Giselle's case, her CD will reflect a $10,000 with an interest rate of 2% compounded annually and a maturity date that is either one month up to five years from the day of opening the CD account and depositing the cash.

Regardless of what happens in the stock market, Giselle is assured of earning 2% from her $10,000 investment. For example: her term is 1 year.
$10,000 * 2% * 360/360 = 200 is the interest she will earn for the year.

4 0
3 years ago
Jessica Marshall, the CEO of ABD Oil Drilling Inc., decides to set aside an amount of $10,000 from the company's annual profits
Travka [436]

Answer:

corporate philanthropy.

Explanation:

Corporate philanthropy refers to an act done by a corporation or business organization with a motive to promote the welfare of a society by charitable donations of funds

Since in the question it is mentioned that the Jessica already aside the amount of $10,000 for the nonprofit organization and already it meets the requirement of government to contribute 4% of the company revenue for the social benefits

So this given situation represents the corporate philanthropy.

3 0
2 years ago
A new accountant working for Metcalf Company records $800 Depreciation Expense on store equipment as follows:
Snowcat [4.5K]

Answer:

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5 0
3 years ago
Listed below are the ledger accounts for Borges Inc. at December 31, 2019. All accounts have normal balances. Service Revenue $2
Tresset [83]

Answer:

Explanation:

The  debit and credit balance of trial balance is shown below:

Debit balance =  Cash + Rent Expense + Dividends + Salaries Expense + Equipment + Accounts Receivable + Advertising Expense

= $12,850 + $2,400 + $1,500 + $4,300 + $12,935 + $5,700 + $1,370

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= $41,055

The preparation of the trial balance is given in the spreadsheet. Kindly find the attachment below:

3 0
3 years ago
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