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stich3 [128]
3 years ago
5

An investment is expected to yield $300 in three years, $500 in five years, and $300 in seven years. What is the present value o

f this investment if our opportunity rate is 5%
Business
1 answer:
Serhud [2]3 years ago
5 0

Answer:

Total PV= $864.11

Explanation:

Giving the following information:

Cash flows:

Cf3= $300

Cf5= $500

Cf7= $300

Opportunity rate= 5%

<u>To calculate the total present value, we need to use the following formula on each cash flow:</u>

PV= FV/(1+i)^n

PV1= 300/(1.05^3)= 259.15

PV2= 500/(1.05^5)= 391.76

PV3= 300/(1.05^7)= 213.20

Total PV= $864.11

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The following events took place at a manufacturing company for the current year: (1) Purchased $96,300 in direct materials. (2)
andrezito [222]

Answer:

$90,139.00

Explanation:

ending Work in process inventory = Beginning WIP + Direct Materials + Direct labor + Material Overhead - Cost of goods manufactured

Beginning Work In Progress = 0

Direct Materials = 0.80*$96,300

                           = $77,040

Direct labor = $57,300

Material Overhead = indirect labor + other manufacturing head

                                = $14,900 + $108,300

                                = $123,200

ending Work-in-Process Inventory

= beginning inventories + direct material + direct labor + material overhead

= (0 + $77,040 + $57,300 + $123,200)*0.35

= 257,540*0.35

= $90,139

Therefore, The value of the ending Work-in-Process Inventory is $90,139.

3 0
3 years ago
Chester's balance sheet has $86,386,000 in equity. If next year, assets decrease by $4,000,000 and liabilities increase by $2,00
DaniilM [7]

Answer:

$88,386,000

Explanation:

The computation of the chester book value is shown below:

= Equity balance + decrease in assets in the next year - increased in liabilities for the next year

where,

Equity balance is $86,386,000

Decrease in assets is $4,000,000

Increased in liabilities $2,000,000

Now place these values to the above formula

So, the book value is

= $86,386,000 + $4,000,000 - $2,000,000

= $88,386,000

6 0
4 years ago
Llona invested $100,000 in an 18-month certificate of deposit. She needed to cash in the CD to meet some unexpected expenses. Ll
dusya [7]

Answer:

1/2  IS ZERO

Explanation:

JUST LITEN HAVE TROUBLE YEXT ME

4 0
3 years ago
On January 2, 2020, Orange Corporation purchased equipment for $300,000 with an ADS recovery period of 10 years and a MACRS usef
Sveta_85 [38]

Answer:

decrease $49,605

Explanation:

corporation purchased eqipment = $ 300000

ADS recovery period = 10 years

MACRS useful life of 7 years

th eequipment sold for $290,000

The result is option d. Decrease $ 49,605

4 0
3 years ago
Business cycles ___________.
Amanda [17]

Answer:

Are ups and downs in the level of economic activity

Explanation:

Business cycles is defined as the various ups and downs in the economic activities of a particular nations. These ups and downs are generally measured by the fluctuations in the macro economic variables. These macro economic variables includes:

(i) Gross domestic product (GDP)

(ii) Employment

(iii) Rate of consumption

There are four major phases in the process of business cycle are as follows:

(i) Expansion

(ii) Peak

(iii) Contraction

(iv) Trough

7 0
4 years ago
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