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wlad13 [49]
2 years ago
6

Assume you are going to receive a payment of $1,000 in 5 years. You'd like to know what that cash flow would be worth in 2 years

. To calculate the answer, you use the given interest rate to obtain an equivalent cash flow expressed in year 2 dollars. This is an example of calculating a...
Business
1 answer:
Digiron [165]2 years ago
7 0

Answer:

The multiple choices are as follows:

Group of answer choices:

A. Present Value

B. Future Value

C. Discounted Value

D. Annuity

E. Lump Sum

The correct option is C,discounted value

Explanation:

The worth of the cash flow which is $1,000 is given with reference to the worth in 5 years' terms,hence restating the cash flow to its worth in two years' time is discounting to its two years' worth.

The answer cannot be present value since the cash flow is not being discounted to today's equivalent amount.

Also,future value is not correct since future value of $1,000 is already provided in the question

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The deal your assistant signs calls for the sale of a minimum of260 chairs and up to 450 chairs. The price will be $91 per chair
sattari [20]

Answer:

a. Revenue = $23,660

b. Revenue = $40,837.50

Explanation:

a) Data and Calculations:

Minimum number of chairs to be sold under the deal = 260

Price at minimum number of chairs (260) = $91

Maximum number of chairs to be sold under the deal = 450

Discount offered for quantity above 260 = $0.25 per chair on the entire order

Price at maximum number (or just above 260 chairs) = $90.75 ($91 - $0.25)

Minimum revenue to be made under this deal = $23,660 (260 * $91)

Maximum revenue to be made under this deal = $40,837.50 (450 * $90.75)

6 0
3 years ago
Exercise 8-07 At December 31, 2019, Pharoah Company Company had a credit balance of $18,100 in Allowance for Doubtful Accounts.
Alja [10]

Answer:

Entries are given below

Explanation:

DATA:

Opening Balance in the allowance for doubtful debt = $18,100

During 2020 Pharoah company wrote off accounts totaling 12,900

Entry                                                       DEBIT        CREDIT

Allowance for Doubtful Accounts $11,800  

Accounts Receivable                                               $11,800

At December 31, 2020, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $23,700

Entry                                                       DEBIT        CREDIT

Bad debt expense                                $17,400

Allowance for doubtful debt                                    $17,400

           

Working

Balance before adjustment = $18,100 - $11,800

Balance before adjustment = $6,300

After Aging schedule indication

Adjustment  = $23,700 - 6,300

Adjustment = $17,400

3 0
3 years ago
The use of the Certified Public Accountant title is regulated by Question content area bottom Part 1 A. state law through the li
marshall27 [118]

Answer:

1.C

Explanation:

tama po yan

(- -) (- -)

✓ ✓

5 0
2 years ago
Elisa was involved in three auto accidents this year. Even though none was her fault, her insurance company increased her rates.
Ket [755]

Your insurance carrier might have to raise your rates to pay for the vehicle's damage or medical if a person involved needs it.

5 0
3 years ago
Beta Company leased equipment from Summer Industries. The lease agreement qualifies as a finance lease and requires annual lease
Tamiku [17]

Answer:

Total increase in pretax earnings on Summer’s December 31, 2019, income statement is $20,253

Explanation:

Fair value of asset sold on lease = Present value of lease payments = $50,000 * Cumulative PV factor at 6% for 8 periods of annuity due

= $50,000 * 6.20979

= $310,490

Interest income for 2019 = ($310490 - $50,000) * 6% = $15,629

Total increase in pretax earnings on Summer’s December 31, 2019, income statement = $310490 - $300,000 + $15,629 - 5866 = $20,253

3 0
2 years ago
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