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SSSSS [86.1K]
3 years ago
8

Which of the following statements are correct concerning the present value of​ $1.00 five years from today discounted at​ 5%? I.

The present value is equal to​ $1.00 divided by 1.05 to the 5th power. II. If the discount rate were less than​ 5%, the present value would be smaller. III. If the discount rate were more than​ 5%, the present value would be smaller. IV. If the​ $1.00 were to be received 6 years from​ today, the present value would be larger.
Business
2 answers:
andre [41]3 years ago
6 0

Answer:

1 and 3 option

Explanation:

Which of the following statements are correct concerning the present value of​ $1.00 five years from today discounted at​ 5%?  The present value is equal to​ $1.00 divided by 1.05 to the 5th power and If the discount rate were more than​ 5%, the present value would be smaller.

To calculate present value:The present value is equal to​ $1.00 divided by 1.05 to the 5th power, Therefore

Present value= the future value/(1+r)n    where n=5, r= 0.005 or 0.006

which will be 1/(1+0.05)5

                           =0.78

Note:The present value interest factor for a single sum is always equal to or less than 1 and the further in time, the smaller the present value interest factor

harina [27]3 years ago
5 0

Answer:

<u>Statements I and III</u>

Explanation:

I)

Using the formula

Present value= Future value/(1+r)^n

where:

future value= $1

r is the interest rate,

n is the investment time period

Present value= 1/(1+5%)^5 (raise to the 5th power)

=$0.78

Note that ideally the value of a dollar should be less in the future using the time call value of money factor. Thus this statement is correct.

III)

If the discount rate is less than 5% to achieve a future value of $1.00 at the end of 5 years, the present value should be bigger.

Assume the discount rate is 4.9%

Present value=

1/(1+4.9%)^5 (raise to the 5th power)

=1/(1+0.045)^5

=1/1.049^5

<u>=$1.27 (Correct since the present value is bigger)</u>

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The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 30 and December 31, 2016, trial
dlinn [17]

Answer:

purchase of supplies 5,600

insurance expense      2,300 debit

           prepaid insurance            2,300 credit

Explanation:

(1) What was the cost of supplies purchased during December?

invneotry identity:

beginning supplies + purchase = ending supplies + expense

the left side are the input. The supplies could come from previous prior or be pruchase.

The right side the outputit could be consumer or kept at stock

3,100 + p = 4,600 + 3,600

purchase = 4,600 + 3,600 - 3,100 = 5,100

(2) What was the adjusting entry recorded at the end of December for prepaid insurance?

beginning insurance 7,600

ending insurance     (5,300)

adjustment:                2,300

there was insurance expired for the value of 2,300

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2 years ago
Herzberg's motivational factors and Maslow's esteem and self-actualization needs are similar. Explain how organizations can meet
Taya2010 [7]

Answer:

Organizations can meet the human needs identified by Maslow by studying and implementing the motivational factors specified by Herzberg.

The similarity of Herzberg's motivational factors and Maslow's esteem and self-actualization needs is addressed by the following questions: "What do people really want from their work?"  "How do organizations go about meeting these needs or ensuring that the needs are met?"

The answer is in the awareness of what workers want from the work they carry out for organizations.  As Maslow stated, people generally have five human needs: physiological needs, safety needs, social belonging, self-esteem, and self-actualization (later described as  transcendence).   It is only when the basic needs (physiological needs, safety needs, and social belonging and love needs) are satisfied  in that order, that workers would seek self-esteem and self-actualization or transcendence.  It is also at this level of seeking self-esteem and self-actualization that organizations would derive the greatest benefits from their workers.  It then behoves organizations to ensure that the basic needs are not denied, but to push forward to help their workers attain self-esteem and self-actualization.

Herzberg's motivational factors show that it is the responsibility of organizations to ensure that their workers achieve a sense of achievement in the work they do.  They should also be recognized for doing good jobs.  The nature of the work should be such that it does not demean the worker.  There should be dignity of labor.  Workers achieve more when they are made responsible for the outcome of their work.   Being assigned responsibilities help them to advance and and grow.  Organizations also need to manage well the extrinsic job elements that Herzberg identified as "hygiene factors," which concentrate on the work environment.

Explanation:

a) Frederick Herzberg identified certain job factors that bring about employee job satisfaction whereas others can create job dissatisfaction. According to Herzberg, "motivating factors (also called satisfiers) are primarily intrinsic job elements that lead to satisfaction, such as achievement, recognition, the (nature of) work itself, responsibility, advancement, and growth."  The dissatisfiers, on the other hand, he called "hygiene factors."   They are "extrinsic elements of the work environment such as company policy, relationships with supervisors, working conditions, relationships with peers and subordinates, salary and benefits, and job security, which can result in job dissatisfaction if not well managed."  An interesting result of Herzberg’s studies was that "the opposite of satisfaction is not dissatisfaction."  Herzberg's studies established that proper management of hygiene factors could prevent employee dissatisfaction, but that these factors could not serve as a source of satisfaction or motivation.  The summary is that motivational factors are quite distinct from hygiene factors.

b) Maslow identified the following hierarchy of human needs: physiological needs, safety needs, social belonging, self-esteem, and self-actualization (later described as  transcendence).  The hierarchy of needs, according to Maslow, show how humans essentially partake in behavioral motivation.   The summary of Maslow's hierarchy of human needs is that "people are motivated to fulfill basic needs before moving on to other, more advanced needs."

8 0
2 years ago
Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no b
Sveta_85 [38]

Answer:

$136

Explanation:

Date      Transaction       Units         Cost           Total          

3             Purchase             5            $20             $100

10            Sale                     3

17            Purchase            10            $24            $240

20           Sale                     6

23           Sale                     3

30           Purchase           10             $30            $300

using the first in, first out method, the COGS is calculated based on the oldest price of the units in merchandise inventory:

6 units were sold on May 20th, 2 of them costed $20 (May 3rd purchase) per unit = $40, while 4 of them costed $24 (May 17th purchase) = $96. Total COGS = $40 + $96 = $136.

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Explain five reasons some areas have high population density and give example of those areas​
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Answer:

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