Answer:
the present value is $818.71
Explanation:
The computation of the value of the bond is shown below:
Given that
RATE = 8.8%
NPER = 10
PMT = $1,000 × 6% = $60
FV = $1,000
The formula is given below:
= -PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $818.71
Kindly find the attachment regarding the same
Answer:
a. equivalent annual cost.
Explanation:
In the case when the annuity payment stream on annually basis contains the similar present value as compared with the initial investment of the project so this we called as equivalent annual cost
It is term as equivalent to devlop a cash flow in a cash flows stream via project life
Therefore the option a is correct
And, the rest of the options are incorrect
at an interest rate of 5%, the present value of the contract would be $953.14
The first step is<span> defining the problem and research objectives.</span>
Answer:
Ending Inventory = $10,000
Explanation:
Calculating the ending inventory using the lower of cost and net realizable value (NRV):
It means we have to take the inventory cost, which is lower between the original cost and net realizable value. Therefore, for Model A -
Inventory Quantity × Unit Cost (Cost or NRV which is lower) = Total ending inventory cost
100 × $ 100 = $10,000
(We have used the original cost as it is lower than NRV cost)