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mojhsa [17]
3 years ago
7

You have just received notification that you have won the $1.4 million first prize in the Centennial Lottery. However, the prize

will be awarded on your 100th birthday, 70 years from now. The appropriate discount rate is 8 percent. What is the present value of your winnings
Business
1 answer:
Arada [10]3 years ago
6 0

Answer:

Present value = $6404.20

Explanation:

Data provided in the question :

Amount of the Centennial lottery prize won = $1.4 million = $1,400,000

Time after which the amount will be received, n = 70 years

Discount rate, r = 8%

Now,

the present values is given as:

\textup{Present value}=\frac{\textup{Principle amount}}{(1+r)^n}

on substituting the respective values, we get

\textup{Present value}=\frac{\textup{$1,400,000}}{(1+0.08)^70}

or

Present value = $6404.20

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A customer opens an account at a brokerage firm to purchase securities in an offering. The customer must receive the disclosure
zhuklara [117]

Answer:

The correct option is A

Explanation:

NASAA stands for North American Securities Administrators Association,which describe or states that falling to provide or supply to customer, the purchasing securities in an offering.

It should be done at no later than the confirmation date of the transaction, either a preliminary prospectus or a final prospectus and an extra document, which altogether contained all the information stated in the final prospectus.

Therefore, the customer should receive the disclosure document on no later date than confirmation of the sale.

3 0
3 years ago
After preparing the firm's trial balance, cole's accounting staff notices that the total of the debit column is $52,500, while t
Len [333]
<span>In this case the total of debit column is more than that of credit column. It can be because of two situations. One situation is that the expenses are recorded twice or more in the books in the account due to which the debit side is coming more than the credit side. Or other way around, the income has been recorded less than what needs to be actually recorded.Hence there is an accounting error committed in this scenario.</span>
7 0
3 years ago
Jim drops his car off at ABC Garage to have his exhaust system repaired and takes the train to work. When he returns, he finds t
TEA [102]

Answer: Direct Excess Coverage

Explanation:

The coverage type under ABC's garagekeepers policy that would split the cost of the loss with Jim's own insurer without placing blame on ABC Garage is the direct excess coverage.

This coverage is identical to the direct primary coverage and it basically protects the vehicle of a client without taking into consideration the person that is responsible. The direct excess coverage will be paid in excess of the primary policy.

6 0
2 years ago
During the year, Belyk Paving Co. had sales of $2,560,000. Cost of goods sold, administrative and selling expenses, and deprecia
scoundrel [369]

Answer:

Net income -$268,000

Operating Cash Flow $511,000

Explanation:

A. Calculation for the Net income

INCOME STATEMENT

Sales $2,560,000

Cost of goods sold $1,364,000

Other expenses $685,000

Depreciation $477,000

EBIT $34,000

Interest $302,000

Taxable income -$ 268,000

($34,000-$302,000)

Taxes (24%) 0

Net income -$268,000

CALCULATION FOR EBIT

Sales $2,560,000

LESS:Cost of goods sold ($1,364,000)

Other expenses ($685,000)

Depreciation ($477,000)

EBIT $34,000

Based on the information given we were told that we should ignore any tax loss which was why Taxes (24%) was $0

The taxes are zero since we are ignoring any carryback or carryforward provisions.

Therefore NET INCOME is -$268,000

B. Calculation for operating cash flow

Using this formula

Operating Cash Flow = EBIT + Depreciation - Taxes

Let plug in the formula

Operating Cash Flow= $34,000 + $477,000 - 0

Operating Cash Flow = $511,000

Therefore Operating Cash Flow is $511,000

3 0
3 years ago
A person who is on property with the consent of the landowner and who brings an economic benefit to the landowner, such as a tic
timama [110]

Answer:

A business invitee

Explanation:

A business invitee is any person or group of people who enters another person's commercial property to do business.  A business invitee's purpose is to engage in a commercial transaction with property or landowner. The landowner is liable to any injuries or harm suffered by a business invitee due to dangerous conditions on the property.

Commercial property or premises refers to land or building designated for business transactions such as a retail store or a restaurant. In law, customers are business invitees. The assumption is that customers enter commercial premises to do business with the business owner.

7 0
2 years ago
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