Answer:
PV= $114,699.21
Explanation:
Giving the following information:
Annual payment= $10,000
Number of years= 20
Interest rate= 6%
<u>To calculate the present value, we need to use the following formula:</u>
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
A= annual payment
PV= 10,000*{(1/0.06) - 1 / [0.06*(1.06^20)]}
PV= $114,699.21
Answer:
C. $5
Explanation:
Marginal utility is the benefit gained from consuming an additional unit of a product or service.
According to the question, Michael is maximizing utility when Marginal Utility / Price of colas is equal to Marginal Utility / Price of hotdogs. Marginal utility can thus be found by solving the following equation for X (the price of hot dog)
MU/P of Colas = MU/P of hot dogs
300/3 = 500/X
3/300 = X/500
X = (3/300) x 500
X = 0.01 x 500
X = 5
Hence, the price of each hot dog is $5.
Answer:
The multiple choices missing from the question are:
a. $60,000.
b. $50,000.
c. $57,000.
d. $59,000.
Option D,$59000 is correct
Explanation:
The recorded cost of the equipment is made of purchase cost,the sales tax since it is not recoverable,shipping cost as well as the installation cost.
The recorded cost is computed thus:
Purchase price $50,000
sales tax $4,000
shipping $3,000
installation $2,000
total cost $59,000
The rationale for including shipping and installation costs is that asset cost should include cost of bringing the asset to current location(shipping) and condition(installation)
Answer:
25%
Explanation:
Accounting rate of return =( Net income from investment ÷ Cost of investment ) × 100
Net income from investment = $100,000
Cost of investment = $400,000
Required rate of return = ($100,000 / $400,000 ) × 100
= 0.25 × 100
= 25%
