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Margaret [11]
3 years ago
6

What is the PV of an annuity due with 5 payments of $2,500 at an interest rate of 5.5%?a. $11,262.88b. $11,826.02c. $12,417.32d.

$13,038.19e. $13,690.10
Business
1 answer:
marishachu [46]3 years ago
5 0

Answer:

a. 11,262.88

Explanation:

In this case we are using the formula of an annuity due which is an annuity that starts payment at the beginning of the period.

This formula is

PVannuity due = C * [(1 - ( 1 + i ) ^ {-n}/ i ] * (1 + i)

C = Payments $2,500

i = Interest rate 5.5%

n = Number of payments 5

PVannuity due = 2500 * [(1 - ( 1 + 0,05 ) ^ {-5}/ 0.05 ] * (1 + 0.05)

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Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) E-Travel P
svlad2 [7]

Answer:

E-travel-1.15

Pricecheck-0.38

Explanation:

Debt to equity ratio compares the finance provided by outsiders viz-a-viz that which is provided by the original owners of the company,the shareholders, in order to determine whether or not the company is at risk of slow growth if outsiders withdraw their funds.

Debt to equity=total liabilities/equity

E-Travel:

total liabilities is $2,854,475

total equity $2,482,681

debt-equity ratio=$2,854,475/$2,482,681=1.15

Debtholders provided more capital funding than the stockholders

Pricecheck:

total liabilities is $472,610

total equity is $1,257,614

debt-to-equity ratio=$472,610/$1,257,614 =0.38

4 0
4 years ago
Baxter Company's merchandise inventory at the start of 2014 was $85,000. The company purchased inventory during 2014 in the amou
11Alexandr11 [23.1K]

Answer:

$306,000

Explanation:

The formula and the computation of the cost of good sold is shown below:

Cost of goods sold = Opening balance of merchandise inventory + Purchase made  - ending balance of merchandise inventory

= $85,000 + $323,000 - $102,000

= $306,000

Basically we have applied the above formula to find out the cost of goods sold

7 0
4 years ago
Cannon Company invested $8,000,000 in a new product line. The life cycle of the product is projected to be 8 years with the foll
ohaa [14]

Answer:

0.1

Explanation:

The Average Rate of Return (ARR) is the average net income an asset/investment is expected to generate over the course of its lifetime.

The Formula for ARR is Average Annual Net Income ÷ Initial Investment. If the question says to convert to percentage then the computed figure is multiplied by 100.

Step 1: Compute Average Annual Net Income

Add the streams from the 1st to the 8th year and divide by 8

$200000+$200000+$300000+$700000+$800000+$1100000+$2000000+$1100000=$6,400,000

$6,400,000÷8=$800,000

Step 2: Compute the ARR

Average Annual Net Income÷ Initial Investment

$800,000÷$8,000,000= 0.1

Note: The Figure should be multiplied by 100 to get the percentage figure if requested.

3 0
4 years ago
Cameroon Corp. manufactures and sells electric staplers for $17.00 each. If 10,000 units were sold in December, and management f
Monica [59]

Answer:

d. Sales in Dollars February = $180353

Explanation:

The new Sales or the sales budgeted for January will be 3% higher than that for December. If December sales were of 10000 units, then the January sales will be of 10000 * 103% = 10300 units.

The budgeted sales for February will be 103% of January sales.

Budgeted sales- Feb = 10300 * 103% = 10609 units

The selling price is assumed to stay constant at $17 per stapler.

Sales in Dollar-February = 10609 * 17 = $180353

6 0
3 years ago
A project to put on a major international sporting competition has the following major deliverables: Sports Venues, Athlete Acco
11Alexandr11 [23.1K]

Answer  & Explanation:

Deliverable I choose is Event.

Answer is explained and draw in attached document.

Hope you like it. :)

Download docx
7 0
3 years ago
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