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zheka24 [161]
3 years ago
14

The present value of $1,000 to be received in 5 years is ________ if the discount rate is 12.78%. Group of answer choices $687 $

494 $368 $548
Business
1 answer:
saul85 [17]3 years ago
5 0

Answer:

$548

Explanation:

Calculation for the present value

Using this formula

= P / ( 1 + r ) ^ t

Where,

P represent Principal=1,000

r represent rate=12.78%

t represent Time= 5 years

Let plug in the formula

P=$1,000/(1+0.1278)^5

P=$1,000/(1.1278)^5

P=$1,000/1.825

P=$548

Therefore the present value of $1,000 to be received in 5 years is $548 if the discount rate is 12.78%.

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A proposed new investment has projected sales of $585,000. Variable costs are 44 percent of sales, and fixed costs are $187,000;
Tema [17]

Answer:

The projected Net Income is $70,784

Explanation:

The Pro- forma income Statement

Working Note:

Variable cost = Sales × 44%

= $585,000 × 44%

= $257,400

EBT (Earnings before Tax) = Sales - Variable cost - fixed cost - depreciation

= $585,000 - $257,400 - $187,000 - $51,000

= $89,600

Net Income = EBT × Tax rate

= $89,600 × 21%

= $70,784

8 0
3 years ago
Matteo just left the Army after 20 years of service. During his service, he managed to save a little money and is now entitled t
atroni [7]

Answer:

The answer is: B) He should check out the enterprise zones in Arizona

Explanation:

Enterprise zones were created to attract new businesses and investments to certain urban areas by offering tax concessions, infrastructure incentives and reduced regulations. Companies usually can locate for free there (some give out land to businesses for free), and the business don't have to pay certain taxes for doing so (usually local and/or state taxes, but sometimes even some federal taxes).

8 0
3 years ago
A broker-dealer is physically located and registered in State A. The broker-dealer has an existing client in State A who is a st
mars1129 [50]

Answer:

D) The broker-dealer must be registered in State B in order to contact the client while she is in medical school in State B

Explanation:

Since the client will live in state B for an extended period of time, at least 4 years if she completes medical school, the broker-dealer must be registered in state B if he wishes to continue doing business with her.

If the client would have only gone to state B for a few months, then the broker could have still worked with her without registering in state B since the client could be considered on a vacation trip.

7 0
3 years ago
A factory machine was purchased for $375000 on january 1, 2018. it was estimated that it would have a $75000 salvage value at th
natima [27]
Given that a<span> factory machine was purchased for $375000 on january 1, 2018. it was estimated that it would have a $75000 salvage value at the end of its 5-year useful life. it was also estimated that the machine would be run 40000 hours in the 5 years. the company ran the machine for 4000 actual hours in 2018.

If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2018 would be

\frac{375000-75000}{40000} \times4000= \frac{300000}{10} =\$30,000</span>
4 0
2 years ago
Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and
Solnce55 [7]

Answer:

Explanation:

This is a question about allocation based on how much the street frontage will be valued in future. That value will then be allocated to the joint cost to see how much to apportion to Street Frontage now.

The total value of the Street Frontage after development is,

= 125 lots * $70,000

= $8,750,000

The total value of Golf lots are,

= 100 lots * $100,000

= $10,000,000

Adding them up,

= 10,000,000 + 8,750,000

= $18,750,000

This is the total amount of the company could make and therefore the lot's value.

Company incurred the following costs.

= 1,850,000 * 1,450,000

= $3,300,000

The amount of joint costs to be allocated to Street Frontage will be,

= 8,750,000/ 18,750,000 * 3,300,000

= $1,540,000

The amount to allocate to Street Frontage based on the total value of the lot is $1,540,000.

3 0
3 years ago
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