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Fynjy0 [20]
3 years ago
7

To find the present value of a cash flow expected to be paid or received in the future, you will the future value cash flow by (

1 + I)N. What is the value today of a $42,000 cash flow expected to be received 17 years from now based on an annual interest rate of 7%? $20,609 $13,296 $16,620 $132,670
Business
1 answer:
wolverine [178]3 years ago
5 0

Answer and Explanation:

In order to determine the present value we should divide the future value cash flow by (1 + rate of interest)^number of years

And, the value of the today should be

= $42,000 ÷ (1 + 0.07)^17

= $13,296

Hence, the same should be considered and relevant

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If consumer wealth decreases as the stock market plunges, then (3 points) there is a movement down the AD curve as price level d
tekilochka [14]

Answer:

AD shifts left and price level would decrease.

Explanation:

If consumer wealth decreases due to a plunge in the stock market, the AD curve will shift to the left. This is because shifts to the left of the AD curve represent a reduction in demand, and if consumers are poorer, they will naturally decrease their demand.

This will in turn reduce the price level, because in a market system, prices will fall until they meet the new, lower demand, meaning that a new equilibrium price is reached.

3 0
3 years ago
A 50 year old customer receives an inheritance of $1,000,000 which he places with an investment adviser to invest with the objec
AfilCa [17]

Answer: 10%

Explanation:

Given that :

Worth of investment = $1,000,000

Worth after 1 year = $1,300,000

Worth after 2 years = $1,200,000

From the above, investment recorded $300,000 increase after one year and $100,000 Depreciation at the end of the second year.

Therefore, Net increase:

$300,000 - $100,000 = $200,000 (after 2 years)

Therefore, average yearly/annual increase = $200,000 / 2 = $100,000

Therefore, the annual return on the investment is :

(Annual increase / investment worth) × 100%

(100,000 : 1,000,000) × 100%

0.1 × 100% = 10%

= 10%

8 0
3 years ago
Front Company had net income of $82,500 based on variable costing. Beginning and ending inventories were 1,800 units and 3,200 u
3241004551 [841]

Answer:

$94,260.00

Explanation:

There is no doubt that the difference between net income under absorption costing and variable costing method lies in the treatment of fixed cost, under the former, each product is charged with fixed cost while total fixed cost is charged as a  period cost under the latter.

In essence, the fixed cost on ending inventory would have been expensed and deducted in arriving at net income under variable cost, in other words, we simply add to net income under variable costing the fixed cost attributable to an increase in ending inventory

income=$82,500+(3200-1800)*$8.40

net income=$94,260.00

4 0
2 years ago
The following standards for variable manufacturing overhead have been established for a company that makes only one product: Sta
Aleks [24]

Answer:

Variable overhead efficiency variance= $19,952 unfavorable

Explanation:

Giving the following information:

Standard hours per unit of output 5.2 hours

Standard variable overhead rate $11.60 per hour

Actual hours 2,500 hours

Actual output of 150 units

<u>To calculate the variable overhead efficiency variance, we need to use the following formula:</u>

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Standard quantity= 5.2*150= 780

Variable overhead efficiency variance= (780 - 2,500)*11.6

Variable overhead efficiency variance= $19,952 unfavorable

8 0
3 years ago
Place a number, 1 through 7, in front of each of the following balance sheet categories to designate the order in which they are
blagie [28]

<u>Explanation:</u>

Classified balance sheet presents information about assets,liabilities and shareholder's equity of an entity.Order in which they are presented is as follows"

  1. Current assets-it includes cash and cash equivalents like prepaid expenses,inventories,assets held for sale.
  2. Long term investments-it includes investment made in other companies
  3. Property,plant and equipment-it includes all the fixed assets.
  4. Intangible assets-it includes assets which cannot be touched like goodwill.
  5. Current liabilities-it includes trade and other payables, accrued expenses,liabilities held for sale
  6. Long term liabilities-It includes long term loans,Deferred tax liabilities.
  7. Stockholder's equity-It includes share capital.additional paid up capital,retained earnings.

3 0
3 years ago
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