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Tems11 [23]
3 years ago
5

​(Perpetuities​) What is the present value of the​ following? a. A ​$ perpetuity discounted back to the present at percent b. A

​$ perpetuity discounted back to the present at percent c. A ​$ perpetuity discounted back to the present at percent d. A ​$ perpetuity discounted back to the present at percent
Business
1 answer:
mrs_skeptik [129]3 years ago
6 0

Answer:

The present value of a perpetuity is calculated as follows:

= Cashflow / Discount rate

a. Present value of $400 perpetuity discounted at 15%

= 400 / 0.15

= $2,666.67

b. Present value of $3,000 perpetuity discounted at 19%

= 3,000 / 0.19

= $15,789.47

c. Present value of $110 perpetuity discounted at 16%

= 110 / 16%

= $687.50

d. Present value of $60 perpetuity discounted at 12%

= 60 / 0.12

= $500

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Gain is generally recognized in an asset distribution to a partner. True False
8_murik_8 [283]

Answer:

False

Explanation:

Usually distributions reduce a partner's outside basis in a partnership, they are generally not considered income. Since most distributions are not considered income, they do not result in gains for the partner. Some distributions may result in gains, such as certain cash distributions or securities (bonds) distributions. It is uncommon for a gain to result from  property being distributed.

5 0
3 years ago
Stratford Company purchased a machine with an estimated useful life of seven years. The machine will generate cash inflows of $9
Amiraneli [1.4K]

Answer:

The price o the machine is = $268,157.69

Explanation:

<em>The Net present value is the difference between the present value (PV) cash inflows and the initial cost of the investment.</em>

<em>PV of cash inflow =</em>

90,000× (1- (1.1)^(-7) )/0.1

=  438,157.69

NPV = PV of cash inflow - cost of the machine

<em>Let represent cost of the machine as " y "</em>

170,000 =  438,157.69  - y

y = 438,157.69- 170,000

y =  268,157.69

The price o the machine is = $268,157.69

4 0
3 years ago
A company revenue reports the following information as of December 31: Sales revenue $800,000 Cost of goods sold 600,000 Operati
Wittaler [7]

Answer:

$320,000

Explanation:

As we know that the

Comprehensive Income = Operating profits + Unrelated profits

The unrelated profits here is profit generated arising due to the sale of debt securities which is not the core operation of the company and hence is unrelated profits.

So by putting values we have:

Comprehensive Income =  ($800,000 - $600,000 + $90,000)  + $30,000

Comprehensive Income =  $320,000

4 0
3 years ago
Read 2 more answers
IKEA employees are inspired to work hard by an anecdote from their Swedish founder, Ingvar Kamprad, who told how he was berated
MAVERICK [17]

Answer:

Hero

Explanation:

Hero -

It refers to a person can be male as well as a female , who is admired for his or her noble and courageous activity , is referred to as a hero .

Many people makes the hero his or her ideal an tries to follow the lifestyle , character , behavior and nature , and tries to copy him .

Hence , from the given scenario of the question ,

The correct answer is hero .

5 0
3 years ago
Building and deploying flexible systems can allow for ___________.
musickatia [10]
Solutions for unexpected business environmental changes
4 0
3 years ago
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